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Dangote Refinery Will Boost Growth of Downstream Sector in 2022, CPPE, Others Affirm

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The Centre for the Promotion of Private Enterprise (CPPE), an economic advocacy group, has identified Dangote Petroleum Refinery as one of the key expected drivers of growth that would impact positively on the downstream sector of the Nigerian economy in 2022.

Likewise, Financial Derivatives Company Limited, a financial institution, in its recent Economic Report for 2022, expressed a firm belief that Dangote Refinery would boost the growth of the downstream sector of the economy and enhance petroleum products distribution across Africa.

The Managing Director/CEO of Financial Derivatives Company, Bismarck Rewane, however, warned that the refinery, when operational, would not be a final solution to Nigeria’s economic crises. “The coming on stream of Dangote Refinery will no doubt enhance product distribution across Africa. Will Dangote refinery solve Nigeria’s problem? The answer is no. But the company is going to make Nigeria an exporter of refined petroleum products,” he added.

Photos:Kano Roads Deserted As Tricycle Operators Embark On Strike
In a Nigeria Economic Outlook for 2022 released by the CPPE, its Chief Executive Officer, Dr Muda Yusuf said activation of the Petroleum Industry Act (PIA) in 2022 is expected to impact positively on the economic outlook.

“We expect to see positive outcomes as investor sentiments in the oil and gas sector improve on account of the reforms anchored on the PIA. This will however depend on the political will deployed to drive the implementation of the provisions of the Act. It is also expected that the coming on stream of the Dangote refinery in 2022 will also impact positively on the downstream sector of the economy”, he added.

He said the average oil price in 2022 is expected to exceed the budgeted benchmark of sixty-two dollars ($62) per barrel, offering some fiscal headroom. This, he noted, would be powered by higher energy demand driven by the recovery of economic activities globally.

“This trajectory is expected to impact on our foreign reserve and strengthen the capacity of the Central Bank of Nigeria (CBN) to support the foreign exchange market”, Yusuf said. He, however, added that if the Dangote refinery comes on stream in 2022, the fiscal pressure on the economy may abate, but not completely eliminated.

According to the economist, because the service sector is less vulnerable to the structural constraints of the economy, especially the real sector of the economy, it will continue to outpace the real sector in 2022.

He said, “The service sector of the Nigerian economy will continue to outpace the real sector in 2022. In the third quarter of 2021, service sector contribution to GDP was 50 per cent and the growth of the sector was 8.41 per cent. The oil sector contribution to GDP was 7.5 per cent while the non-oil sector contribution was 92.5 per cent. While the industrial sector growth contracted by 1.63 per cent, agriculture grew by 1.2 per cent.”

Yusuf said the Gross Domestic Product (GDP) growth would remain fragile at about three per cent, pointing out that the key expected drivers of growth would be sustained recovery of global oil price.

He said, “We expect that the average oil price in 2022 will exceed the budgeted benchmark of $62 per barrel, offering some fiscal headroom. This would be powered by higher energy demand driven by the recovery of economic activities globally.”

The economist noted that despite the downside risks, the economy would continue to present huge opportunities for investors across all sectors. “This is on account of the resourcefulness of the Nigerian people, especially the entrepreneurs. Other inherent strengths of the Nigerian economy include the market size, the population, and the demographic characteristics”, he added.

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Galaxy Backbone Unveils Ambitious 4-Year Digital Transformation Roadmap for Nigeria

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Galaxy Backbone Limited (GBB), Nigeria’s foremost digital infrastructure and services provider, has unveiled a bold and comprehensive four-year strategic plan (2025-2028) aimed at accelerating the integrated digital transformation Strategy (|DTS) plan for government and businesses in Nigeria.

This strategy is designed to enhance digital service delivery, strengthen connectivity, and support
Nigeria’s vision of a fully integrated digital economy.

Developed in collaboration with key stakeholders, the strategy focuses on five core pillars that will drive efficiency innovation, and sustainability in Nigeria’s digital landscape.

Mr. Chidi Okpala Head, Corporate Communications in a statement said the first focuses on building a Resilient Digital Infrastructure; ensuring that govemment and businesses have access to secure, high-speed, and scalable digital platforms.

He said by building and maintaining a robust digital backbone, GBB aims to support the nation’s growing demand for seamless connectivity and data security.

He also said the second pillar, Integrated Digital Ecosystems; fosters coll aboration between
government, businesses, and local communities, creating a more connected Nigeria.

He however said, through this initiative, GBB seeks to break silos and establish a unified digital
experience that enhances communication, innovation, and service delivery.

He added that to meet the evolving demands of governance and business, the strate gy prioritizes Innovative Service Delivery; ensuring that digital solutions are tailored to address economic, social, and administrative needs.

“By leveraging cutting-edge technologies, GBB is committed to driving efficiency, economic growth, and improved public service delivery.”

“Now, recognizing the critical role of trust in the digital era, the fourth pillar of the strategy places a strong emphasis on Digital Leadership & Trust.

“GBB is dedicated to fostering a culture of cybersecurity transparency, and accountability, ensuring that Nigerias digital infrastructure is not only efficient but also secure and reliable.”

“To sustain long-term impact, the fifth pillar, Financial Sustainability; remains a key priority.”

According to him, by investing in innovative technologies and expanding its digital services, GBB aims to drive revenue growth while ensuring affordability and accessibility for all users.

He also maintained that at its core, this strategic roadmap is designed to enhance government efficiency, boost economic development, and improve the overall digital experience for Nigerians.

” So, as part of its commitment to achieving these goals, GBB is actively engaging with government agencies, private sector players, and international and local partners to foster collaboration and accelerate implementation.”

He pointed out that through strategic partnerships, the organization is poised to lead Nigeria into a new era of digital excellence, ensuring that businesses and government institutions alike are equipped for the future.

Galaxy Backbone, through its IDTS plan, remains steadfast in its mission to drive Nigeria’s digital transformation through world-class infrastructure, secure connectivity, and innovative solutions that power progress.

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GBB to Train Over 300 Civil Servants on Govmail

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Abuja, Nigeria – Galaxy Backbone (GBB), the nation’s foremost digital infrastructure and services provider, is set to train over 300 civil servants, including Email Administrators and Heads of ICT, on the adoption, management, and administration of Govmail—the secure official email platform for Nigeria’s public sector. The training, which will be conducted in batches throughout the month of March 2025, aims to ensure maximum impact and effective knowledge transfer.

This initiative is in alignment with the Federal Government’s digitalisation agenda, which prioritizes secure, efficient, and technology-driven governance. By equipping civil servants with the necessary expertise to optimize Govmail, the government is ensuring seamless communication across Ministries, Departments, and Agencies (MDAs) while strengthening data security and operational efficiency.

Prof. Ibrahim Adeyanju, the Managing Director/CEO of Galaxy Backbone, reaffirmed the organisation’s commitment to driving Nigeria’s digital transformation through innovative and secure technology solutions. “As the nation’s leading provider of digital infrastructure, GBB is playing a pivotal role in ensuring that government communications are secured, professional, and aligned with global best practices. This training will enhance civil servants’ ability to effectively utilize Govmail in carrying out their official responsibilities,” he stated.

The training is being conducted in collaboration with the Office of the Head of the Civil Service of the Federation (OHCSF), who has sent out a Circular to all MDAs informing them of this specialized training aimed at providing hands on experience with GOVMAIl features and ensure uniform adoption of and compliance with government approved digital communications standards. This further reinforces the government’s commitment to a digitally-driven public service. It would be recalled that the Head of the Civil Service of the Federation recently described Govmail as a ‘game changer’ for government communication. This underscores the significance of the platform in enhancing inter-agency collaboration, data sovereignty, and information security across all MDAs.
Through this capacity-building initiative, GBB is reinforcing its role as a key enabler of Nigeria’s digital transformation journey, ensuring that public sector professionals are well-equipped to harness the full potential of digital tools in their daily operations.

 

About Galaxy Backbone
Galaxy Backbone Ltd is a digital infrastructure and services company committed to providing secure and efficient digital solutions to support governance, service delivery, and national development for public and private sector organisatuons. GBB plays a critical role in the digitalisation of government processes, ensuring efficiency, security, seamless collaboration across MDAs and providing a platform for enabling digital services across corporate and public organisations.

Signed:
Chidi Okpala
Head, Corporate Communications

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KEDCO Sees Improvement in Financial Performance Following Power Restoration, Appeals for Prompt Payment

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Kano Electricity Distribution Plc. (KEDCO) has reported steady improvements in financial and business performance following the restoration of power supply after a significant blackout during the September-October 2024 billing and collection cycle. This was disclosed in a press statement signed by Sani Bala Sani, Head of Corporate Communication at KEDCO.

According to Sani, the blackout had severely impacted KEDCO and three other distribution companies in the North East and North West regions, with KEDCO being the worst hit. “Recall that KEDCO, alongside three other distribution companies in the North East and North West had significant disruption to power supply in October, with KEDCO being the worst hit,” he stated.

The operations at KEDCO were initially affected on October 13th, 2024, with only 40% of their grid allocation being supplied after the Shiroro-Kaduna 330kV line incident. This situation was exacerbated by a total blackout on October 20th, 2024, during the peak of the revenue collection cycle. “Although the power supply was partially restored to a 40% level on 30th October, we were only availed with up to around 85% supply levels on November 14th and are anxiously awaiting the completion of the Shiroro-Kaduna repairs,” Sani explained.

The blackout resulted in KEDCO’s worst market performance of the year, posing significant financial and economic challenges for both KEDCO and its customers. “Having zero grid supply posed significant financial and economic challenges for KEDCO and its customers, with many customers resorting to costly backup sources or shutting down operations,” Sani noted.

Despite the challenges, KEDCO has seen improvements in power supply, which now stands at around 85%, leading to significant collections from last month’s arrears. Sani urged customers to cooperate by paying their current bills and outstanding arrears promptly to ensure business sustainability. “Thankfully, with the current power supply at around 85%, we have recorded significant collections from last month’s arrears and are appealing to our customers to continue to cooperate with us on prompt settlement of their current bills and arrears, for business sustainability,” he appealed.

Sani also commended the resilience of KEDCO’s customers and vowed to continue improving the performance in supplying safe and reliable electricity. “We commend the resilience of our customers and vow to continue to improve our performance in supplying them with safe and reliable electricity,” he said. He thanked the Honourable Minister of Power for his timely intervention and the Transmission Company of Nigeria (TCN) for their restoration efforts. “We equally acknowledge TCN’s restoration efforts and appreciate the Federal Government’s commitment to helping improve the redundancy and safety of the National Grid,” he added.

Looking ahead, KEDCO’s core investor and Board remain committed to driving investments and improving performance through embedded generation supply options via the Safe Grid and Utility 2.0 projects. “It remains our core investor and Board’s resolve to continue to drive investments and improved performance through embedded generation supply options in our network via the Safe Grid and Utility 2.0 projects,” Sani stated.

 

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