After Dangote Refinery Commences Production, Investors Rake in Huge Profit, Cement Firm Shares Surge
- Investors of the Dangote Group are raking in billions following the commencement of production by Dangote Refinery
- Data from the Nigerian Exchange Limited show that investors of the Dangote Group earned about N513 billion
- The statement follows a report that marketers are lining up to lift products from the Dangote refinery
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Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Following the take-off of the Dangote refinery, investors have rushed to the Nigerian Exchange to snap up stocked by the Dangote Group, which have since appreciated by N515 billion.
Three subsidiaries of the Dangote Group listed on the Nigerian Exchange Limited witnessed a combined market cap increase of N513.69 billion on Monday, January 15, 2024, following the production announcement by the refinery.
Source: Getty Images
Video shows the refinery powering
On Friday, January 12, 2024, a video emerged on social media showing the refinery being powered, with an announcement on Saturday, January 13, 2024, that the facility has commenced production.
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Daily Trust reports that Aliko Dangote, the Dangote Group president, called the event a game-changer and a critical achievement for Nigeria as it demonstrates its ability to deliver significant capital projects.
According to the statement, the refinery would start with diesel and aviation fuel production and petrol by June.
The statement revealed that the products would hit the market in January after obtaining regulatory approval from relevant authorities.
The statement said:
“The refinery can load 2,900 trucks daily at its truck-loading gantries, and the products will conform to Euro V specifications. The refinery design complies with the World Bank, US EPA, European emission norms, and the country’s oil regulator’s emission/effluent norms, employing state-of-the-art technology.”
Marketers queue to lift products from the refinery
The development comes as petrol marketers reportedly line up to lift products from the facility.
Legit.ng reported that about seven prominent oil marketers in Nigeria have registered with the Dangote Petroleum Refinery to lift and distribute refined petroleum products from the plant.
Dealers under the auspices of the Major Oil Marketers Association of Nigeria (MOMAN) confirmed on Sunday, January 14, 2024, that with the registration, they would begin the distribution of fuel produced at the plant once the commercial terms are finalized.
The development comes as the refinery reportedly sought the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) approval to hit the market with diesel and aviation fuel anytime this month.
The refinery had stated that it would reach total production capacity by June and commence the production of Premium Motor Spirit (PMS), also known as petrol.
11 oil marketers move to lift products
Also, the Independent Petroleum Marketers Association of Nigeria (IPMAN) disclosed that they would meet the refinery management this week to discuss the terms for product lifting.
Punch reports that the Product Retail Outlets Owners Association of Nigeria (PETROAN) said the association has engaged the refinery management to supply products from the facility.
The report said that significant marketers who are members of MOMAN have already registered with the refinery and are set to start buying products from the plant.
The seven significant marketers include 11 Plc, Conoil Plc, Ardoval Plc, MRS Oil, OVH Energy Marketing Limited, Total Nigeria, and NNPC Retail.
Richest Nigerian investors on the Nigerian exchange: Otedola, Elumelu join Dangote, others
Legit.ng reports that last week, the Nigerian Exchange was voted second-best performing worldwide as banking stocks drove the all-share index through the roof.
The recent performance of the NGX has thrown up some top performers and new wealthy investors in Nigeria.
On Monday, January 15, 2024, the all-share index of the Nigerian exchange rose by 1.92%, propelled by Dangote Cement, which saw its share price surge by 7.49%, with a market cap of N430 billion.
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Source: Legit.ng
