Africa is a major oil-producing region and is home to some 12% of the world’s reserves.
The oil industry helps to drive economic development on the continent, contributing substantially to GDP, government revenues, and foreign exchange earnings.
Nigeria is Africa’s biggest oil producer, with reserves primarily located in the Niger Delta.
Yet, over the decades, the population has not substantially benefited from its oil riches.
One of the main reasons for this baffling outcome is that, for years, Nigeria didn’t have its own refineries.
So Africa’s largest oil producer has been exporting its crude oil to be refined abroad, enriching traders in the process.
However, this is all about to change, as a huge new oil refining complex is about to become fully operational.
Aliko Dangote, Africa’s richest man, has invested a whopping £16billion in building one of the world’s largest oil refineries in Nigeria.
Construction began in 2016 and was completed seven years later in May 2023.
Located in the Lekki Free Zone outside of Lagos, the plant has a size almost the equivalent of 4,000 football fields.
Once fully operational, it should be able to produce 650,000 barrels per day.
Dangote Industries Ltd said on Monday that the target should be achieved in roughly 30 days’ time.
The company says its refined oil will be able to meet all of Nigeria’s energy needs and make it self-sufficient.
They also want to supply petrol, diesel, and jet fuel to other African countries.
Amaka Anku, the Africa head at the Eurasia Group think-tank, has hailed the Dangote refinery as “a very significant moment” for Nigeria.
She told the BBC: “What you had in the downstream sector was an inefficient, corrupt monopoly.
“What the local refinery allows you to do is have a truly competitive downstream sector with multiple players who will be more efficient, profit making and they’ll pay taxes.”