A minor fire outbreak at the waste treatment plant of the Dangote Group’s mega refinery, sited on the outskirts of Lagos, has been curtailed. Though the incident has been described as “minor,” it does raise anxiety over probable delays in the production of gasoline by the refinery, which is due to start mid-July.
A recent viral video had captured the $20 billion refinery belonging to Aliko Dangote with thick, billowy smoke. Nobody was injured during the incident, but it casts a shadow over the entire infrastructure at the refinery, especially since the date of production starting from the refinery was postponed from June to mid-July.
The mega refinery had begun the production of diesel and aviation fuel earlier in the year, which has slightly reduced the price of diesel in the country. A supply chain hitch has now befallen the Dangote Group. The national oil company, NNPC, cannot meet up its commitment toward the supply of 300,000 barrels of crude per day that was dedicated to the support of the refinery’s operations.
In return, Dangote Group has asked for help from international oil companies accused of selling at exorbitant prices. In reaction, the group had to “reduce our production and import crude from the United States,” says the company’s vice president.
Moreover, he accused the Nigerian government of being too mild in overseeing the country’s importation of substandard diesel. The unfair competition has compelled Dangote Group to export most of its products, sidelining the domestic market.
If these challenges are resolved, Dangote Group will stabilize its operation, become a huge business in Nigeria’s energy sector within a very very short time, and curb the current, registered deficit.