International Oil Companies Ignore Dangote Refinery, Sell Crude Oil for Forex to Others
- Aliko Dangote, chairman of the Dangote Group, said international oil companies are not willing to supply crude to his refinery
- He said that despite efforts by the Nigerian National Petroleum Company Ltd, the IOCs prefer to sell their products abroad
- He bemoaned the fact that some of the people who profited from the oil imports were against the refinery's success
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Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
Aliko Dangote, chairman of the Dangote Group, has lamented that international oil companies in Nigeria are not prepared to supply crude oil to his refinery with a capacity of 650,000 barrels.
Source: UGC
In a CNN interview, Dangote claimed that the multinational oil corporations were accustomed to selling crude for foreign exchange and were not prepared to cease.
He added that despite the Nigerian National Petroleum Company Ltd's best efforts, the IOCs prefer to sell their products abroad.
He stated:
“The NNPC is doing its best, but some of the IOCs, they are struggling to give us crude, everybody is used to exporting and nobody wants to stop exporting."
Why Africa is slow to grow
The business magnate claimed that Africa's lack of growth was due to the continent's sale of raw materials and purchase of completed items by the West.
“Africa is not going as it should because we export raw materials and import finished goods. It doesn’t matter what it is, even if it is gold or whatever, raw material is always priced at a ridiculous amount compared to finished goods,” Dangote said.
He lamented that some people who benefited from oil import did not want the refinery to be successful.
Refinery made progress
The refinery recently inked a contract to acquire 24 million barrels of crude oil from the US.
Dangote said that the refinery will produce roughly 21 million barrels of crude oil from Nigeria each month and that 21 ships would no longer be used to import or export crude into Africa.
“If we take all the crudes from Nigeria, it means we will take 21 million barrels per month and that will also help in terms of reducing the C02 emissions.
Dangote disclosed that he would not have opted for a refinery if he had known what it entails.
When asked if he had started making money from the refinery, he replied:
“We will start making money soon. It is not about making money only, it also gives us a great satisfaction that we are making Africa great.”
Dangote speaks on opening first African refinery
In an earlier report by Legit.ng, Dangote addressed by no refining facility has been created in Africa in the previous 35 years.
In a clip from an interview with CNN, Dangote stated that even if he had constructed a refinery worth $19 billion, he would have changed his mind if he had realised ahead of time how challenging it would be to build a facility that scale on the continent.
He maintained that Africans would need to develop the continent on their own, as foreign investments and aid would not be sufficient to build Africa.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
