Dangote to invest additional US$2 bln in refinery-petrochemical complex

17-Dec-14

Aliko Dangote, Africa’s richest businessman, is increasing the size of his investment in an oil refinery, petrochemical and fertilizer plant by more than a fifth to US$11 billion despite a looming slowdown in Africa’s biggest economy, reported the London-based Financial Times. He is planning an additional US$2 bln investment, in addition to the US$9 bln he announced just over a year ago, to double production of polypropylene and to add production of polyethylene. The project could eventually revolutionise Nigeria’s energy sector by slashing fuel imports, eliminating costly rackets associated with subsidies and crude oil swaps, and add billions of dollars in value to petroleum exports. Mismanaged for years, Nigeria’s state-owned refineries work at a fraction of installed capacity. Therefore the country, Africa’s leading oil producer, imports most of its petrol and diesel requirements. Speaking to the Financial Times at his headquarters in Lagos, he said the refinery and petrochemicals project should be completed by the end of 2017 and thereafter have a lifespan of decades.