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In a groundbreaking move, Africa's wealthiest individual, Aliko Dangote, is reportedly setting the stage for a novel oil trading division, potentially based in London, to support his forthcoming refinery project in Nigeria, according to individuals familiar with the matter.

This strategic initiative is set to challenge the conventional interactions with leading global traders who have been involved in lengthy negotiations, offering financial and crude oil support to Dangote's refinery in exchange for access to its products. The anticipation is growing among traders as Dangote's massive 650,000-barrel-per-day refinery is expected to significantly impact the global oil and fuel markets.

Sources indicate that Dangote is inclined towards a more autonomous approach, with plans to appoint Radha Mohan, a former Essar trading expert, to lead this new venture, as his recent role as director of international supply and trading at Dangote Group since 2021 suggests. The team is actively seeking to expand by recruiting skilled traders.

Despite the refinery's construction phase, which lasted nearly a decade and exceeded the budget by $6 billion, totaling $20 billion, the facility has started operations, processing about 8 million barrels in its first two months. However, reaching its full operational capacity is expected to take additional time.

To facilitate the refinery's crude oil acquisition, it's reported that Vitol has made upfront payments for certain product shipments, while Trafigura has engaged in crude oil swaps for future fuel cargoes. Both Vitol and Trafigura, based in Geneva, have remained silent on the matter.