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How will Dangote's refinery impact Nigeria?
Analysts say the 12 billion-dollar Dangote refinery could double Nigeria's oil revenues when it comes on board in 2020. Temilade Aduroja, sub-Saharan Africa analysts at Renaissance Capital joins CNBC Africa to discuss this and more.
Thu, 18 Oct 2018 08:25:33 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The Dangote refinery could double Nigeria's oil revenues and boost GDP by 1.3% upon full operation in 2021.
- The refinery's production capacity of 650,000 barrels per day will reduce Nigeria's reliance on imported petroleum products.
- Challenges such as pricing regulations may necessitate adjustments in the domestic market, but the long-term benefits for Nigeria's oil sector are significant.
Nigeria, known for its rich oil reserves, is on the brink of a transformative moment with the impending completion of the Dangote refinery, a project that promises to revolutionize the country's oil industry. Temilade Aduroja, a sub-Saharan Africa analyst at Renaissance Capital, recently discussed the potential impact of the $12 billion refinery on CNBC Africa. Analysts believe that the refinery, set to be fully operational by 2021, could double Nigeria's oil revenues and significantly boost GDP by 1.3%. The refinery, which aims to produce about 650,000 barrels of refined fuel per day, is poised to reshape Nigeria's oil landscape and reduce the country's reliance on imported petroleum products. While there are challenges ahead, such as pricing regulations and market adjustments, the overall outlook for Nigeria's oil sector looks promising with the Dangote refinery at the forefront of innovation and growth.
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