IMF lists how Dangote Refinery can boost Nigeria’s economic recovery
The International Monetary Fund, IMF, has said the new Dangote Refinery would boost the country’s GDP when it starts operation.
In an article published on Monday, IMF said the refinery which is expected to start operations in the third quarter of this year can meet the full demands of domestic consumption of petroleum products in the country.
The refinery which is located in Lekki Free Trade Zone, Lagos, will have production capacity of 540 000 barrels a day when it launches, before reaching its full capacity of 650,000 barrels per day by the end of the year or early 2023.
“On the upside, the Dangote refinery, if commencing production in 2022 as planned, could meet the full demand for domestic consumption of refined petroleum products—which are almost all imported at present—thereby improving the CA balance,” the report read.
“With crude oil for local refining not subject to the OPEC quota, the refinery also has the potential to catalyze more domestic crude oil production and boost GDP growth.
“Real GDP growth is projected at 2.6 and 2.7 percent respectively, for 2021 and 2022, remaining at that level in the medium term. Oil production is expected to increase gradually as security and technical challenges dissipate but to remain below the 2019 level. Non-oil growth is projected to broaden and receive a boost from the Dangote refinery coming on stream, but overall to remain sluggish owing to inwardlooking policies, protracted FX shortages, and infrastructure and utility gaps.”
