The President of Dangote Group, Aliko Dangote, has revealed plans to list the $20 billion Dangote Petroleum Refinery on the Nigerian Exchange (NGX), as the refinery prepares to start operations in December with a production volume of 350,000 barrels per day. In an interview on CNBC Africa, Oyeyemi Oke, Partner at AO2 Law, discussed the potential impact of this listing on the Nigerian Stock Exchange and the oil and gas industry.
Oyeyemi expressed optimism about the listing, citing the recent increase in activities on the Nigerian Stock Exchange. He stated, “In the last one year, we’ve seen some significant listings by financial services companies and the Nigerian Infrastructure Debt Fund. The proposed listing of Dangote Refinery Limited on the Nigerian Stock Exchange is good for opening up investment opportunities and improving market capitalization.”
Regarding the operation of the refinery, Oyeyemi highlighted the resolution of domestic crude oil supply issues, stating, “The domestic supply issues have been resolved, at least to a certain extent, to enable the refinery kick-off. There’s an estimate that about 6 million barrels of crude will be refined before the end of 2023.” He expressed hope that the refinery would start operations soon, as it is the largest single-train refinery in the country.
The discussion then shifted to the Nigerian National Petroleum Company Limited (NNPCL) and its aim to end petrol imports by the end of 2024. Oyeyemi acknowledged the ambitious target set by the NNPCL and attributed it to the company’s profitability-focused management team. He emphasized the importance of resolving domestic crude oil supply issues and ensuring a long-term commitment to the volume of crude oil required by the refineries.
Oyeyemi also urged the government to create an enabling environment for local refiners, emphasizing the need for availability of refined products in the domestic market. He stated, “Government should also create an environment for operators… in order to be able to ensure that there’s availability of product in the domestic market.”
The interview concluded with a discussion on the postponed OPEC Plus meeting, which is now scheduled for the 30th of the month. The delay is reportedly due to disagreements among producers regarding production levels and possible reductions, with African countries such as Angola, Nigeria, and the Congo being implicated. Oyeyemi commented that the challenges and issues discussed in the meeting were a continuation of the previous OPEC meeting in June. He mentioned Nigeria’s intention to increase its production level and highlighted the need to balance national interests with the collective interests of OPEC Plus members.
As the Nigerian oil and gas industry experiences these developments, investors and stakeholders are eagerly awaiting the listing of the Dangote Petroleum Refinery on the Nigerian Exchange. It is hoped that this listing will attract investment and contribute to the growth and stability of the Nigerian Stock Exchange.