On the eastern peninsula of Lagos in the Lekki Lagoon, 30,000 workers are currently working on what may be the world’s largest refinery. It is the latest and largest project by Dangote Oil Refinery, a company owned by the Nigeria-based Dangote Group.

The oil refinery could be a massive boon for the Nigerian economy. Nigeria spends $7 billion per year importing fuel, even though it has been drilling oil for decades. The refinery will enable Nigeria to produce enough fuel supplies for itself and its neighboring countries. Additionally, the refinery could add $13 billion or 2.3% to Nigeria’s GDP and employ up to 70,000 workers. However, it should be taken into account that these estimates were made before 2020. Due to the COVID-19 pandemic, oil prices have fallen precipitously and have affected investment plans for significant oil projects worldwide, making these numbers less accurate.

This refinery will also have the world’s most massive distillation column, which will separate crude into various fuels at different temperatures. It is expected to process 650,000 barrels of oil per day. The $15 billion petrochemical complex will have a gas processor and the world’s largest ammonia and urea plant as well, which is used to make plastic and fertilizer. Fertilizer exports are also expected to generate $2.5 billion in revenue annually, bringing even more benefits.

Crude for the refinery will be garnered from local suppliers and two oil fields the Dangote Group bought from Royal Dutch Shell Plc. The refinery will comply with emission rules, which will make it easier to sell in Europe and North America.

Unfortunately, the project has had multiple delays; the initial opening date was in 2016 but was pushed back to 2019. Now, due to the COVID-19 pandemic, the Dangote Group has pushed operations to late 2021, but industry observers believe the opening may not happen before 2023. Nonetheless, the project will be a significant step forward for the oil-producing nation.

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