Dangote Speaks on Stationing His Billion Dollar Refinery in Ogun State
- Aliko Dangote said the delay in locating the Dangote Petrochemical Facility in Ogun State has cost his business $500 million
- He stated how the bureaucratic roadblocks he had to overcome negatively affected the project's timeline and budget
- He said that the plan was inadvertently foiled by unseen political players and Lagos took advantage of the opportunity
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Billionaire businessman Aliko Dangote has revealed that his conglomerate lost $500 million due to the delay in finding a location for the Dangote Petrochemical Facility in Ogun State.
Source: UGC
During a Sunday media tour, Dangote said that the lengthy process of obtaining property in Olokola for a petrochemical plant cost him $500 million in addition to the $2.5 billion that he had originally borrowed from banks.
He expressed his displeasure with the bureaucratic obstacles he had to go over, which significantly impacted the project's budget and timeline.
Dangote said,
“The three years and eight months delay by Ogun State govt over Olokola land for petrochemicals facility costs us $500m.”
According to Dangote, the Dangote company has invested a total of $25 billion in fertilizer plants and petrol refineries during the previous ten years.
According to data obtained from the National Bureau of Statistics (NBS), foreign investors avoided Ogun, Osun, and thirty-one other states, choosing instead to invest in Lagos, Federal Capital Territory (FCT), and Ekiti, which recorded $2.78 billion, $593.58 million, and $12.7 million in investment, respectively.
According to BusinessDay's findings, Dangote originally intended for the petrochemical and refinery complex to be located in the Olokola Free Trade Zone, which crosses the states of Ondo and Ogun. However, unseen players in the political arena seem to have managed to thwart the scheme in some way.
The government of Lagos State, led by then-Governor Babatunde Fashola, seized the momentous chance that has since materialised.
Speaking on the potentials of the billion dollar refinery, Samuel Oyekanmi, a research and insight associate with Norrenberger Financial Group said,
"The full implementation of Dangote Refinery is a potential growth propeller, however it will take time before we start seeing the full impact on the economy."
Dangote Refinery confirms date for release of petroleum
Legit.ng reported that Dangote Industries Limited has reiterated that production of Premium Motor Spirit (PMS), commonly known as petrol, will commence at the Dangote refinery in July 2024.
Devakumar Edwin, vice president of Oil and Gas at Dangote Industries Limited, stated this during a visit by the S&P Global team to the Dangote Refinery in Ibeju-Lekki, Lagos.
Earlier, Legit.ng reported that Dangote refinery set July 10–15, 2024, as the dates for supplying petrol products to the Nigerian market.
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Source: Legit.ng
