Anthony Chiejina, the Group Head of Corporate Communications for the Dangote Group, has declared that Nigeria's increasing refining capacity positions the nation advantageously amid changing global geopolitical circumstances that pose risks to oil supply and pricing.
During a statement made on Wednesday at the Dangote Refinery, Chiejina remarked that current conflicts involving key oil-producing nations such as Venezuela and Iran could severely impact the global crude oil supply, consequently affecting fuel prices on a worldwide scale.
He emphasized that the capability to refine crude oil domestically has fundamentally transformed Nigeria's economic landscape, providing a buffer against both external shocks and pricing instability.
Chiejina further explained that without local refining capabilities, Nigeria would remain highly susceptible to international market disruptions, particularly in relation to significant surges in the prices of Premium Motor Spirit (PMS) and diesel.
He underscored that domestic refining diminishes Nigeria’s vulnerability to worldwide supply disruptions, while simultaneously stabilizing the availability and pricing of fuel, even if global conditions worsen.
He added that in the event that global tensions heighten further, the Dangote Refinery stands prepared to enhance its capacity utilization, thereby ensuring that the country is insulated from severe external economic pressures.
Chiejina noted, “Observing the ongoing shifts in global geopolitics, one can visualize Nigeria without any refining facilities. For us, the outlook is exceptionally positive owing to the nation’s ability to process crude. Given the current situation in Venezuela and Iran, I anticipate crude prices stabilizing between 50 and 52, which could impose certain implications for Nigeria, particularly concerning PMS and diesel prices if we lack refining capacity. Hence, it is a propitious period for us and a timely advantage for Nigeria. Should the situation worsen, I can assure you that our productive capacity will be enhanced, and we will likely not suffer significantly from prevailing circumstances.”
Melissa Enoch
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