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Nigerian Mogul Dangote Launches Africa's Biggest Oil Refinery

History was made as President Muhammadu Buhari inaugurated the first indigenous refinery in Nigeria, the U.S.$18.5 billion Dangote Petroleum Refinery, in Ibeju-Lekki, Lagos.

Africa's richest man, Aliko Dangote, owns the new refinery, which aims to address the ongoing fuel shortages in Nigeria, Africa's biggest oil producer. The Nigerian National Petroleum Company Limited (NNPC) will supply the new 650,000 barrel-per-day Dangote oil refinery with up to six million barrels of crude oil in December, to be used in test runs, three industry sources with knowledge of the matter, have told Reuters.

The refinery is expected to boost domestic refining capacity, getting rid of the current consumption shortfall. It will also reduce import dependency and stimulate economic growth. Nigeria's existing refineries, plagued by operational inefficiencies under government control, have failed to meet the growing demand for petroleum products. Substantial imports have become necessary, reports Nnaemeka Vincent Emodi for The Conversation.

At the launch, Dangote outlined his hopes for the refinery: "Our first goal is to ramp up production of the various products to ensure that within this year (2023), we are able to fully satisfy the nation's demand for quality products."

President Muhammadu Buhari described the Dangote Refinery as a significant milestone for Nigeria's economy and a game changer for the downstream petroleum products market in the entire African region. Downstream products in the oil industry refer to refined products derived from crude oil such as petrol, diesel, and lubricants.

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