Crusoe Osagie
The Republic of Togo and Dangote Group on Tuesday began exploring opportunities of investment in the petrochemical industry and other arms of the oil and gas sector.
The partnership between the Francophone West African nation and Dangote Group culminated in a visit of the President of Togo, Faure Gnassingbe, to Dangote’s petrochemical plant in Ibeju Lekki, Lagos.
Gnassingbe who was conducted round the four different segments of the petrochemical plant, expressed satisfaction with the effort of the company, pointing out that his country was open to partnership and similar investment.
Speaking during the event in Lagos, the President of Dangote Group, Aliko Dangote, said Togo can benefit from the sub-sea gas pipeline infrastructure, one of the aspects of the investment, which he said can help to convey gas to Togo as an alternative to the West African Gas Pipeline Project (WAGP).
Dangote and Gnassingbe also agreed that when the fertilizer, petrochemical and refinery plants which make up the complex become operational, it could serve as a good source of petroleum products and petrochemicals for Togo due to the advantage of reduced freight cost, which would result in an overall drop in the cost of energy in the country and more affordable raw materials for the plastic industry.
According to Dangote, on completion of the refinery, the domestic demand for fuel in Nigeria would be met and the surplus would be exported with the prospect to generate other macroeconomic benefits which include a $5.5 billion per annum forex earnings and over $7.5 billion per annum forex savings from import substitution.
He noted that the entire project which would cost around $17 billion, would become the largest refinery, petrochemical and fertilizer complex in Africa with a capacity to refine 650,000 barrels of crude oil per day, produce 750,000 mtpa of polypropylene from its petrochemical plant while the fertilizer plant, will produce about 2.8 million mtpa of urea and ammonia.
He stated that in terms of employment, with the ongoing construction at the site, over 1500 people have been engaged directly through various contractors executing contracts, pointing out that when operational, about 1,200 will be engaged directly at the refinery, while ancillary jobs of about 150,000 will be created through indirect and various allied contractors and service providers.
Also speaking at the event, the Governor, Lagos State, Akinwumi Ambode, said the investment is one of the biggest in Africa and would have a huge positive impact not only on the Nigerian economy, but the whole of West African region.
He said the refinery when completed, would be the largest single train anywhere in the world refining 650,000 barrels of crude per day, stressing that apart from creating jobs, the refinery would contribute immensely to solving the fuel supply challenge in the West African region
“We are happy with the level of work that has been done here. A lot of progress has been made on this project and we commend Dangote Group for this vision, doggedness and his unwavering desire to contribute positively to the growth of the Nigerian economy,” he said.
He noted that the investment is a strong confirmation that Lagos is a prime investment destination, maintaining that the investment also shows the positive investment climate in the state which he said has boosted investor confidence.
“We believe strongly that the future prosperity of West Africa is dependent on the collaboration between government and investors. Lagos is open for business and also open to Togolese government and Togolese investors to move both countries forward. Our government is investing massively in creating infrastructure to support businesses and individuals. We have also made huge investments in security and we will continue to ensure that the lives and properties of all citizens are secured. We remain partners in progress with our investors,” he added.
The Minister of Trade, Industry and Investment, Dr. Okechukwu Enelamah, in his comment, said the investment demonstrates the success of the partnership between the government and the private sector, saying that the private sector is the engine for economic growth and development.
“Nobody will go through this site without understanding the power of the private sector to drive an economy when given the opportunities to thrive. The project we are seeing here and other investment of the company embodies that,” he said.
He said “Africa needs champions to drive growth in the continent,” noting that Dangote’s investments in Nigeria and across the continent is commendable.
“He has chosen to invest in Nigeria. We are very interested in what you are doing and of course you know you have the support of the federal government,” he said.
