Aliko Dangote, Africa’s wealthiest person, has begun talks with international banks to secure billions of dollars to fund crude oil imports. The Africa Finance Corporation (AFC), a pan-African development bank, is reportedly involved in the negotiations, as revealed by Financial Times.
The Dangote Refinery aims to reach a capacity of 650,000 barrels per day, which requires sourcing additional crude oil. Experts from the Knightsbridge Strategic Group (KSG), a geopolitical intelligence firm from the US and UK, project the refinery will achieve full capacity by 2025.
KSG predicts that once operational at full capacity, the Dangote Refinery will significantly lower local fuel costs and increase competition in Europe, as Nigeria emerges as a new fuel exporter. This shift could also help European countries reduce their dependence on Russian oil.
However, the report warns that Nigeria’s transition to domestic oil production might trigger political unrest if refinery issues remain unresolved. This could include protests, particularly as the government phases out fuel subsidies and worsens the current fuel crisis.
