Dangote to list $20bn refinery on Nigerian exchange, urges public to get ready

Africa's wealthiest industrialist and Chairman of the Dangote Group, Aliko Dangote, has disclosed his intention to list his 560,000-capacity refinery on the Nigerian Exchange Limited publicly.

The billionaire revealed this during an interview with the Financial Times, saying that the company has resolved issues about crude oil supply and is prepared for the listing.

Refinery to begin production with 350,000 barrels of crude oil

The development aligns with Dangote's more extensive business plans and could positively affect the company's valuation and investor engagement.

He said: "We have resolved all the issues with crude oil supply," Dangote stated. "We are now ready to move forward with our plans to list the refinery on the Nigerian Exchange Limited."

"We are starting with 350,000 barrels a day. The challenges that we faced, I don't know whether other people can face these challenges and even survive. It is either we sink or we sail through. And we thank the Almighty that we have arrived at the destination."

Legit.ng reported previously that the refinery had ordered about six million barrels of crude oil from the Nigeria National Petroleum Company Limited (NNPC) and would start with 350,000 barrels of crude oil.

Oil companies in Nigeria export crude to foreign refineries in exchange for refined products.

However, NNPC said it has halted crude swaps and begun cash payments. Nigeria owns about four refineries, but imports refined petroleum products.

The Nigerian government said the Port Harcourt Refinery will come onstream by December 2023. Analysts say Dangote's refinery is a game changer despite missing two production deadlines.

The refinery is to start full operations in December

Dangote stated that the refinery would start operations in December 2023 with refined diesel, kerosene, and JetA1, which are aviation fuels.

He said a deal had been reached for the first cargo of about six million barrels scheduled for delivery in December.

The billionaire stated that the facility will start producing its total capacity of 650,000 barrels per day in 2024.

The refinery is expected to produce 27 million litres of diesel, 11 million litres of kerosene, and nine million litres of JetA1. The facility will source crude from producers in Nigeria, including NNPC.