The Wall Street Journal has reported that billionaire industrialist Aliko Dangote is among the biggest beneficiaries of the disruption caused by the recent US-Iran conflict, with his $20bn refinery enjoying rising demand for refined petroleum products.
In a report published on Friday, the newspaper said Dangote was now reaping the rewards of the refinery after enduring years of delays and cost overruns that pushed the project’s cost to about $20bn.
“The huge refinery reached full capacity in February—just in time to supply the world with diesel, jet fuel and gasoline that doesn’t need to pass through the Strait of Hormuz.
“Surging demand for refined petroleum products has boosted Dangote’s wealth by some $4.86 billion since the start of the year, according to the Bloomberg Billionaires Index, bringing his net worth to about $34.8 billion
“Dangote’s repeated bets on the rise of Africa’s middle class, from cement to sugar to salt, have helped the 69-year-old become the world’s 65th-wealthiest person,” the report read.
It added that output from the refinery had risen by more than 70 per cent this year, driven by stronger demand for refined petroleum products.
The newspaper quoted Dangote Industries Group Vice-President, Devakumar Edwin, as saying the company plans to list the refinery on the Nigerian Exchange later this year, targeting a valuation of at least $50bn, while also pursuing a secondary listing, likely in New York
According to the report, the energy market disruption triggered by the US-Iran conflict has benefited producers outside the Middle East, with Nigeria recording increased demand for its crude oil and refined petroleum products.
It added that the development had supported the naira and helped moderate domestic petrol prices.
Edwin also told the newspaper that demand for the refinery’s products had increased across sub-Saharan Africa, while exports of jet fuel to Europe had grown significantly this year.
He said the company plans to expand the refinery’s capacity to 1.4 million barrels per day by 2028, an investment expected to cost about $13bn.