The Emir of Kano, Muhammadu Sanusi II, has praised the Dangote Petroleum Refinery, saying its emergence has the potential to transform Nigeria from a major importer of petroleum products into an exporter of refined products and a source of foreign exchange.
Sanusi, speaking during the Dangote Refinery Initial Public Offering (IPO) investor roadshow in Kano, said Nigeria should no longer depend on foreign refineries to process its crude oil and subsequently import the refined products at a higher cost.
“We don’t need someone to take our crude to England and France, refine it and sell it back to us at a profit. We should refine it here, buy and also sell to others,” he said.
According to him, the development represents a major shift in Nigeria’s economic structure, as the country could move from spending scarce foreign exchange on imported petroleum products to earning foreign exchange by exporting refined products.
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He cited the purchase of aviation fuel from the Dangote Refinery by European airlines during a recent geopolitical crisis as an indication of Nigeria’s emerging role in the global energy market.
Sanusi said the refinery also had implications beyond business, arguing that increased local refining capacity could provide alternatives to petroleum supplies from the Middle East and contribute to global energy security.
He described Dangote’s investment as an achievement Nigerians should be proud of, noting that an African businessman had built one of the world’s largest refineries and was processing Nigerian crude for the domestic and international markets.
The Emir also rejected arguments that Dangote’s dominance in sectors such as cement and refining automatically amounted to monopoly, saying other investors remain free to enter the market.
“Nobody says you cannot set up a refinery,” he said, challenging Nigerian investors to commit capital to the country’s productive sectors rather than investing their wealth abroad.
Sanusi called for more Nigerians to move away from what he described as rent-seeking activities and invest in manufacturing, refining, agriculture and other productive ventures.
“We want more refineries. We want the price of cement to come down. Build more refineries,” he said.
He recalled that, as Governor of the Central Bank of Nigeria, he had identified the concentration of economic activity around the Dangote Group as a potential risk, but said the company’s strategy of investing in sectors serving Nigeria’s large domestic market had demonstrated a consistent business model.
According to him, the strategy is based on producing locally for Nigeria’s large consumer market rather than relying on imports.
Sanusi said Nigeria had for decades operated an economically inefficient model in which it exported crude oil, earned foreign exchange and then spent significant amounts of the same foreign exchange importing refined petroleum products.
He described the Dangote Refinery as a disruption of that model, arguing that domestic refining could reduce pressure on Nigeria’s foreign exchange reserves while creating opportunities for exports.
The Emir said the broader objective should be to produce locally the goods Nigerians consume, including petroleum products, cement and food, rather than continuously importing products that could be manufactured domestically.
He also praised Aliko Dangote for taking the initial risk of investing heavily in Nigeria, suggesting that other investors could follow once the viability of such investments becomes clearer.
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Sanusi said Nigeria’s large population provides a substantial domestic market for businesses that can successfully produce essential goods locally.
“Beyond business, beyond profits, we have to thank Aliko for what he has done to the Nigerian economy,” he said.
He added that, during his tenure as CBN governor, one of his major concerns was the amount of foreign exchange Nigeria spent importing petroleum products after exporting crude oil.
According to him, that model also meant Nigeria was effectively supporting foreign refineries and economies by purchasing their refined petroleum products.
“What Aliko has done is disrupt that model,” Sanusi said.
