Some economic and energy experts have commended the Dangote Refinery for its plan to expand its refining capacity from 650,000 barrels per day to 1.4 million barrels per day. 

They stated that the move would put Nigeria on the path to achieving full self-sufficiency in petroleum products, conserve foreign exchange, and improve fuel affordability for ordinary citizens. 

They spoke in separate interviews with journalists in Lagos on Sunday, following the announcement of the expansion by Aliko Dangote, the president of the Dangote Group.

Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), described the move as a landmark step in Nigeria’s industrial development.

“We should be proud that a Nigerian of such stature has demonstrated the capacity and courage to ensure that our country becomes self-reliant in refined petroleum,” Mr Yusuf said.

 According to him, the expansion would enable the refinery to meet Nigeria’s domestic fuel demand and export more products to global markets, strengthening the country’s foreign reserves.

Mr Yusuf said the project would also boost the country’s macroeconomic stability by reducing the huge amount of foreign exchange previously spent on importing refined petroleum.

“Before now, Nigeria expended about 30 per cent of its foreign exchange earnings on fuel imports. This expansion will help conserve a substantial portion of that,” he explained. 

Mr Yusuf said the refinery’s growing capacity would strengthen Nigeria’s industrial base, attract new investments, and create a positive global perception of the country’s economic potential.

Similarly, Ayodele Oni, partner and chair of the Energy and Natural Resources Practice Group at Bloomfield, described the refinery expansion as a “bold and transformative industrial venture.”

 He stated that the establishment of such a large complex within Nigeria would promote local content, create jobs, and stimulate technological advancements in the energy sector.

However, he noted that legitimate concerns exist about the possible emergence of monopolistic dominance within the sector.

“There are always concerns around monopoly, and rightly so. This is why state regulators like the Federal Competition and Consumer Protection Commission must be effective and proactive,” he said.

Mr Oni added that it would be unjust to criticise Dangote for taking calculated risks in a difficult business environment where many investors have often shied away.

“It would also be unfair to deny him the benefits of his huge investment. What matters is ensuring fairness, transparency, and open competition,” Mr Oni said.

Also, Boniface Okezie, president of the Progressive Shareholders Association of Nigeria, lauded Dangote for demonstrating consistency and ambition in expanding the refinery’s capacity. 

He said the development was an indication of confidence in Nigeria’s economy and a reflection of the growing participation of indigenous investors in large-scale projects.

Mr Okezie, however, urged the Dangote Group to prioritise domestic consumption over export, stressing that Nigeria’s energy needs remain enormous and largely underserved.

“Charity should begin at home. The immediate focus should be on meeting domestic fuel demand rather than rushing to export to recoup investment,” Okezie said.

“These kinds of investments take time before they begin to yield profit. Emphasis should be on affordable pricing for local consumers.”

Mr Okezie also called on the federal government to support other domestic investors who had secured licences to build refineries, noting that they need incentives to thrive. 

He said increased participation by private investors would promote healthy competition, create jobs, and stabilise fuel pricing in the long term.

The Dangote Refinery recently announced plans to expand its facility from 650,000 barrels per day to 1.4 million barrels per day. It described the expansion as a strategic move to boost global refining capacity.

(NAN)