By Peter OBIORA Investadvocate

Lagos (INVESTADVOCATE)-Dangote Group’s $9 billion refinery producing 500,000 barrels per day being built is expected to commence operations by the third quarter (Q3) 2017, a Reuters report quoted a seniour official of the company as saying on Tuesday.

According to the report, the refinery, to be located in Lagos, will cut reliance on international markets for Nigeria, which imports more than 80 percent of its fuel needs.

The report further affirmed that a boost to its refining capacity would be a blow to European refiners and oil traders, which make huge profits bringing gasoline into the country.

The lack of sufficient refining capacity is a major handicap in Nigeria.

It quoted Mansur Ahmed, Dangote Industries Ltd’s executive director of stakeholder management and corporate communications, at an African refiners conference in Cape Town saying “By the third quarter of 2017, we expect to be looking at commissioning.”

It says the refinery is being designed to process Nigerian crude mix and produce products conforming to Euro V fuel specifications, as fuel demands across the continent are forecast to rise rapidly with many countries enjoying strong economic growth.

Ahmed who spoke on behalf Aliko Dangote Africa’s richest man said poor infrastructure, competitive global markets and financial constraints have traditionally held back Africa’s refining capacity, while fuel subsidies in Nigeria are also an issue.

He disclosed that the refinery, which is being funded by debt and equity, including a $3 billion commitment from Dangote himself, could list in future should additional capital be needed.

“In the past when we have reached a point where we feel we need to increase capital we have listed,” Ahmed said.

“We have listed our cement business, we have listed our sugar business and our salt business… and, if you like, history is the best teacher,” the report quoted Ahmed.