Dangote Refinery Experts Skeptical About $10bn Projected Savings for Nigeria

As the Dangote Refinery prepares for its commissioning next week, an oil and gas expert, Bala Zakka, has expressed doubt over Aliko Dangote’s claims that the refinery will save Nigeria $10 billion in foreign exchange (FX) and generate another $10 billion in exports upon completion.

Dangote had previously highlighted the potential economic benefits the company would bring to Nigeria in an interview with a special edition of London-based, The Economist Magazine, titled ‘The World Ahead 2023’.

While Dangote asserted that the refinery would put a stop to the need for foreign exchange spent on imported fuel products, Zakka has stated that he is unsure of the validity of the mentioned financial savings, calling on Nigerians to remember that the refinery is a private enterprise aimed at maximizing profits.

According to Zakka, “private initiatives are after profit maximization and cost minimization, so anywhere you see private initiatives, it is not there because it loves its citizens. It is there because there’s a need to maximize profit and minimize cost”.

Although the development of Nigeria’s first private refinery is significant, Zakka emphasized that Nigerians should keep in mind the primary objective of any private enterprise is profit maximization and not providing goods and services for free as provided by the government.

The commissioning draws near us as Dangote Refinery sits ready to refine 650,000 barrels of oil per day, which expected to reduce Nigeria’s reliance on imported petroleum products.