I guess this is why the business tycoon supports GEJ's 2nd term bid! This is better than government running refineries like we always do.

By Toyin Akinosho
Aliko Dangote says the input volume of crude oil for his proposed refinery in Nigeria has been increased to 500,000Barrels of Crude Oil per Day.
It is 25% higher than stated when the project was announced in late 2013. The new input figure is clearly higher than one-fifth of Nigeria’s production.
“We had to expand the size to get more value for the money”, he told a gathering of petroleum geologists in Lagos in early November 2014. Foundation work is going on at the project site in Lekki, in the east of Lagos. Project start-up date was June 2014.“We should be able to finish in 36 months”, he said. That would be November 2017. Dangote’s frank disclosure of the details of the combined refinery and petrochemicals complex, compels a disavowal of scepticism about the project, which analysts have described as daring the Nigerian risk. “The banks have paid $2.4Billion out of the $3.25Billion they promised to loan. We are using that as deposit.” Dangote said that“the complex would help retain $17Billion out of the money expended on petroleum products import into Nigeria and would bring in $7.5Billion as export proceeds“.
The refinery is to be co-located with a petrochemical and fertilizer plant. The increase in crude oil will help double the output of polypropylene from 750,000Tonnes Per Annum to 1 Million Tonnes Per Annum.
Africa’s richest tycoon was speaking extempore, after an official speech, at the All Convention Luncheon of the Nigerian Association of Petroleum Explorationists (NAPE)’s 32nd Annual Conference. He did not say if the original output volumes of the refinery products had changed. In 2013, his company announced 7.684 million metric tonnes per annum (MTPA) of gasoline, otherwise called premium motor spirit (PMS); about 5.30 million MTPA of automotive gas oil (AGO) or diesel; about 3.740million MTPA of Jet Fuel/Kerosene; about 0.213million MTPA of liquefied petroleum gas (LPG), and about 0.625million MTPA of slurry/fuel oil.
Contracts for the construction of the complex were reported in 2013 to have been awarded to US-based conglomerate, UOP, a subsidiary of Honeywell International, a Fortune 500 company that specializes in consumer products, engineering services and aerospace systems. But at this forum, Mr. Dangote said that though piling work on the foundation at the Lekki Free Trade Zone was ongoing, “tenders will start going out”. This was slightly confusing, but we had no room to ask more questions. It was reported in 2013 that the project manager for the refinery and petrochemical plant was India Engineers Limited, an Indian government-owned company credited with the setting up of refineries in India. Saipem, an engineering subsidiary of Italy’s ENI, won the contract for the fertilizer plant.
What had fuelled misgivings around the refinery component of the project most is that the investment decision had taken place against the background of only partial deregulation of Nigeria’s oil and gas downstream. Government controls the price of PMS and Kerosene, while the prices of AGO, DPK, Aviation Fuel, LPG and other petroleum products have been determined by market forces since 2001. Any attempt by the state to leave the price of PMS to the vagaries of the market is forcefully resisted by Nigerians. And yet the subsidy payment to petroleum marketers who import the products at international prices has ballooned so much it is taking up cash that could have gone to fund infrastructural projects. The Dangote Refinery is expected to buy crude oil at international prices and then sell the products to the same cast of marketers who currently import the products. The refinery is expected to be a wholesaler of petroleum products and if the price of its PMS is higher than the subsidized price, the buyers pay in full and get the subsidy from government. If the Dangote refinery chooses to be a retailer, then it gets paid subsidy by government. In a 2013 article, The Financial Times of London quoted Ngozi Okonjo Iweala, Nigeria’s Finance Minister as saying, per the Dangote refinery complex: “If you are selling refined petrol, you will get the subsidy.”
That afternoon in early November 2014, Mr Dangote disclosed how crude oil input to the refinery would be transported from the oil fields of the Niger Delta: “We will bring the crude by SBMs”. The refined products, however, would be distributed all over the country by trucks belonging to such product suppliers as MRS, TOTAL, Mobil, Oando, Forte Oil and several other players.

good development. Other investors should follow suit, soon dey will say dat Dangote is allowed to monopolised everything

Henix:
good development. Other investors should follow suit, soon dey will say dat Dangote is allowed to monopolised everything

dont mind them. Is it Dangote's fault to be a total enterpreneur? That man is a genius! At least we'll have enough to even export! Nigeria will get revenue from such exportation via tax. Employment for our labour market too.