Africa’s richest man, Aliko Dangote, has initiated discussions with international banks to secure funding worth billions of dollars for crude oil imports. The Africa Finance Corporation (AFC), a pan-African development finance institution, is among the organizations involved in the talks, according to a report by Financial Times.
The funding is critical for Dangote Refinery to procure additional crude oil required to achieve its full production capacity of 650,000 barrels per day.
Experts from the Knightsbridge Strategic Group (KSG), a geopolitical intelligence firm based in the US and UK, project that the refinery could reach full capacity by 2025. In its assessment, KSG highlighted the potential long-term benefits of the refinery’s full operations, stating:
Domestic Impact: Full capacity would likely lead to reduced local fuel costs, easing economic pressures on Nigerian consumers.
Global Impact: Nigeria’s transition to domestically refined oil could reduce European dependence on Russian oil, as surplus Nigerian oil would become available for export to countries such as Belgium, the Netherlands, and Norway.
Risks: However, KSG warned that political unrest, including violent protests, could arise if the Nigerian government fails to address other refinery challenges amid the removal of fuel subsidies, which have already intensified economic strain.
The Dangote Refinery, once fully operational, is expected to transform Nigeria into a significant player in global fuel markets while alleviating local energy challenges.
