When Nigeria’s richest man announced that he was going to build a refinery in the megacity of Lagos, the talks dwelt more on how Aliko Dangote would enrich himself more than the economic effect it would have on our county and the city of Lagos.
Lagos as we know it is the hub of Nigeria’s largest economic activities, from the headquarters of the biggest companies to the seaports to the international airports.
We will agree that Dangote did make a wise decision in picking Lagos for what he has tagged as the largest single-train facility in the world when it is completed in 2021.
The refinery site occupies a land area of 2,635ha near the Lekki Lagoon in the Lekki Free Zone. It will be able to tranship refined petroleum products to international markets from this location.
Dangote refinery has promised to increase fuel production in Nigeria and bridge the missing gap that the oil sector has over the years left untouched. Bringing this to Lagos, how would or would not Dangote refinery help the already capital of all financial economies.
What new and exciting change would the Dangote refinery bring to Lagos?
Housing in Ibeju lekki
The area where the Dangote refinery is located has opened up for a new residential environment for the people of Ibeju Lekki.
One way or the other, especially on the internet, you might have come in contact with estate agents offering you juicy deals if you purchase land at Ibeju Lekki.
Usually, the icing on the cake is that the parcel of land is 15 minutes from the new refinery and has excellent proximity to the free trade zone. So you would probably see ads, people, and WhatsApp statuses promoting buying lands close to the new refinery.
Increased labour
Earlier this month, Aliko Dangote announced plans to increase the number of employees at the Dangote Refinery Project site from 40,000 to 57,000. He said that Nigeria currently employs 29 thousand Nigerians and 11 thousand foreigners at the 650,000 barrels-per-day world’s largest single refinery project based in Ibeju Lekki.
So yes, the Dangote refinery has become another employer of labour in our city. With a lot of human resources, the Dangote refinery is a welcome development.
Bridging the gap
In a CNN special report, Aliko Dangote, a concrete magnate worth an estimated $15 billion, said the refinery and petrochemical plant could meet Nigeria’s daily fuel needs of 445,000-550,000 barrels, with spare capacity to export.
So in Lagos, we may be saying goodbye to the lack of domestic refining capacity that has led to frequent power outages and eight-hour gas lines.
Strengthen the naira
CBN has announced plans to strengthen the Naira and, by extension, the economy through the $15 billion Dangote Refinery. On his visit to the Ibeju Lekki, Lagos, project, CBN governor, Mr. Godwin Emefiele, said: “We have decided to sell crude to the refinery in Naira to impact the economy.”
“We also hope that by the time the Refinery starts to refine and sell its petroleum products in Naira, the local currency will be stronger, and by extension the nation’s economy, which is still oil-driven.”
So apart from labour, housing, energy, the Dangote refinery hopes also to strengthen the Naira.
Road networks
With the new refinery and new housing areas come new road networks. Ibeju Lekki free trade zone is sure to see improvement in infrastructures and road networks.
Boosting agriculture
In a visit to the Dangote refinery by the Governor of Lagos state, Aliku Dangote said that “Dangote Industries Limited provides boats and jobs in the projects to boost local income within the Lekki area to boost the local fishing industry.”
On the flip side, the Dangote refinery is a blessing to the megacity of Lagos, but let’s keep in mind that Lagos populations stand at 20 million, and on average, the transportation sector is still struggling with redundancy among its autistic members.
If Dangote’s 650,000 barrel refinery attracts more people to the state, we can only imagine what will happen to our roads.
Also, as one of the wealthiest states in Nigeria, the tax that would be gotten from the Dangote refinery would only increase the value of tax earned in the state.
Lagos, the financial hub for West Africa, is the best catch for the Dangote refinery, and the port gives it an upper hand.
The Labour sector would benefit, the financial economy would benefit, and yes, it would put Lagos at the forefront of oil production.
Keeping the benefits in mind, let us also consider how fossil fuel production has contributed to global warming.
The state must understand that there is a lot it must do to balance the common good with this potential economic booster project.
