By Industrial Digest
Alhaji Aliko Dangote, the President of the Dangote Group, and Abdulsamad Rabiu, Chairman of BUA Group, are no doubt, Nigeria Industrial titans going by the volume and value of their investments across Cement, sugar, and now, they are foraging into oil refinery projects.
This is understandable. The government built four oil refineries, across the country, but they have been down for decades . Of the four refineries, two are in Port Harcourt (PHRC), and one each in Kaduna (KRPC) and Warri (WRPC). The refineries have a combined installed capacity of 445,000 bpd.
Consequently, because they are not well managed,
“Nigeria imports 90% of it’s petroleum products; it spends 35% of the foreign exchange on importing petroleum products.”
Engr.Mansur Ahmed, President of the Manufacturers Association of Nigeria, applauded the investment in private oil refineries.
He noted :” We know that the government cannot maintain its refineries, and has continued to depend on importing the products.
However when deregulated, private investors will be encouraged to invest in the sector even in refinery and distribution so that ultimately the supply will stabilise and the price will come down.
We have seen that in all areas where deregulation has taken place, ” he said.
Dangote and BUA are bringing a combined production capacity off of 800,000 barrels per day .
While BUA’s new refinery, with a capacity to produce 200,000 barrels per day (bpd), will be operational in 2024. By comparison, the Dangote Group project will produce 600,000 bpd..The Dangote Group, says it will be operational by early 2021.
The contract for BUA Oil Refinery was recently signed in Paris between BUA Group Chairman Abdulsamad Rabiu, and the CEO of Axens, Jean Sentenac, in a ceremony presided over by France’s Minister Delegate for Foreign Trade and Economic Attractiveness, Franck Riester.
Rabiu believes his investment in sustainability — “It was not cheap!” — will pay off in the long run, as new fuel standards continue to evolve along with the climate crisis.
“It is in the DNA of BUA Group; look at our cement plants, the most sustainable in Nigeria, same with our sugar plants.”
“This is the hard part, we cannot get this wrong”, says Rabiu. “It is like in an airplane, you always look at who built the engine, it is the most important thing”.