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Dangote refinery: Dangers of a single narrative – sifting facts from emotion | RICHARD AKINOLA

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Richard Akinola

 

When the Dangote refinery controversy blew up, naturally as someone wired to support anyone l perceive to be oppressed, this time, Dangote, l lined up in support of the richest man in Africa.

I perceived he was being unduly treated by the Downstream and Midstream regulators, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). For days, l had heated arguments with people with opposing views on this matter. However, Ademola Adigun, one person l respect on this app, cautioned that people should not be too emotive on this matter but seek knowledge. I took that as a challenge.

Subsequently, in an attempt not to look foolish out of emotive consideration, l opened my mind to critically study the issues involved and even the nitty gritty technical details of the oil and gas system. And because l owe an obligation to educate people, l had to open up myself to information, researching on this issue and the petroleum sector, devoid of emotion.

While several groups of people, including one of my constituencies -the Civil society, have made pilgrimages to the humongous site of the Dangote refinery, unarguably, the largest private refinery in World, l decided, what in my opinion, was sifting facts from emotion. The issue has even reverberated in the hallowed Chambers of the House of Representatives, where the adhoc committee set up to investigate the issue, among other issues in the upstream and midstream petroleum section, was dissolved yesterday.

In a report today by Daily Nigeria, the Speaker, Abbas Tajuddeen, dissolved the committee over alleged compromise by some members of the committee who had exculpated the richest man in Africa, even before the assignment kicked off.

From my findings, there are three major critical issues that are affecting the operations of Dangote Refinery

1) CRUDE SUPPLY-FEEDSTOCK

It does appear that when Dangote was building the refinery, there were no proper arrangements on ground on how he will get feedstock for the refinery. His refinery is the largest single train refinery in the world.
Nobody builds and opens a refinery of this magnitude without refinery agreement to get feed stock. Dangote didn’t have a feedstock agreement for his refinery.

I have read where some people claimed that he has an agreement with NNPC Ltd but that arrangements was not a feed stock agreement. What happened with the NNPC arrangement was that during the project building phase, Dangote Refinery project got stuck and NNPC Ltd got the approval of the President to take equity.

Subsequently, the NNPC got a loan and paid $1bn as part of the 20 per cent equity while the rest was to be paid in crude supply.

The lack of feedstock was part of Dangote’s problem and he is now sourcing feedstock when the refinery is powered. So far, NNPC Ltd has given him 39 cargoes.

2) CRUDE OIL PRICES
Dangote’s claim that IOCs are selling crude oil to him at $6 per barrel above international price doesn’t seem to be true. What l discovered is that Crude oil has different grades. What he got from the US is WTI and the price is not the same as others.
Another key issue under pricing is that the margin of sale of crude oil is different because it is an international business. There is what is called market margin and it is usually from $1.5 to up to $20 per barrel.

There are several crude grades and Dangote Refinery uses different grades of crude to blend. So, when Dangote said he is importing from the United States, it is because he needs it as part of the grades to be used to blend in his refinery to produce petroleum products. His refinery needs several percentage of Bonny light, WTI and others to be able to blend very well. But he is using the fact that he imports from US to give the impression that he is importing from US and other countries, when in actual fact, is that he is sourcing different crude grades to blend.

Another critical point of under pricing is that the marketers buy this crude grades and add their own margin which ranges from $1.5 to $20 but the Nigerian government is giving it to Dangote at a margin of $0.5 per barrel which to me seems to me to be a good deal for him.

One other contentious issue is that Dangote is also persuading the regulator, to persuade the International Oil Companies to give him crude but the IOCs cannot do that because they have Production Sharing Contract (PSC) with the Nigerian government. Through the PSC, the IOCs produce, give Nigeria government its share and take the share of their crude and sell to marketers. Dangote didn’t enter any agreement with the IOCs to give him feedstock. What people must also know is that these IOCs borrow money from banks, invest in equipments, drill the oil fields, give government its share and take theirs, sell, recover their costs and make further investments.

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Also, Dangote wants to use the local refinery obligation to obfuscate issues but this is not working for him because the local refinery obligation, according to the PIA, is based on a willing buyer and willing seller arrangement. This means the product must be available, and the parties must agree on the price in line with Section 109 of the PIA, which deals with the National Crude Oil Requirement of Refineries. The section states that the Nigerian Upstream Petroleum Regulatory Commission shall base the allocation of the domestic crude oil supply obligation applicable to the respective lessees on the National Crude Oil Demand requirement supply curve, which is the supply curve of crude oil or condensate that can be supplied on a voluntary basis at the prevailing international market price.

3) DOWNSTREAM
On the controversial issue of licensing of Dangote Refinery, while it has the license to build the plant, the refinery does not have license that covers other parts of its operations.

For monopoly, Dangote is asking the regulator to direct all oil marketers to get petroleum products from his refinery. But the question to ask is: Can Dangote guarantee Nigeria three billion liters of petroleum products per day in strategic national reserves for 32 days and not sell it? As a business entity, for Dangote to keep these products in strategic national reserves without selling them will lead to huge losses for him.

For the regulator to give Dangote that monopoly that he asking means that the business of other oil marketers would be killed and this is against the policy of deregulation because marketers should be allowed to import so there can be healthy competition.

Another critical point to note is that Dangote Refinery operates in a free trade zone and he will be exempted from paying tax to government. This is a loss of revenue to the government. The petroleum products from the refinery would be sold in foreign currency instead of naira to Nigerians as oil marketers who want to buy from there will fill form M (Importers form) in the bank.

Another contentious issue is the sulphur content in the petroleum products. It was reported in the media that the NMDPRA has minimum of 11 staff members in Dangote Refinery and all other local Refineries. The test of the petroleum products from the refinery are done daily and sent to the regulator. This means the regulator knows what they are saying when they stated that the product is inferior.

One worrisome aspect of the whole arrangement is that Dangote will need a minimum of $1.8bn working capital to operate the refinery and no bank would be willing to give it to him because he appears to be at a financial tight corner.

This was further confirmed with yesterday’s International Fitch ratings which downgraded the Dangote industries Limited, reflecting the precarious liquidity position of the business conglomerate.

The report stated inter alia that the group’s liquidity position, “followed lower than expected disposal proceeds, operational and financial underperformance compared to our prior expectations, also affected by local currency devaluation, and lack of contracted backup funding to repay its significant debt facilities maturing on 31 August 2024….We view the lack of DIL’s audited accounts for 2023 as a corporate governance issue. The RWN reflects uncertainty related to the group’s ability to refinance maturing debt.

“Lack of tangible steps to refinance or repay the maturing debt would lead to further downgrade while we do not expect a positive rating action until the company’s liquidity position improves substantially.”

I love Dangote and his can-do spirit, the reason l initially was emotive when this controversy broke when l felt he was being unduly treated but my study of the whole scenario has changed my perspective. I want him to succeed but he too has to do the needful. The monopolistic mindset which he carried from his cement business cannot work in the deregulated petroleum sector. More importantly, he needs a pragmatic approach to solve his liquidity challenges in this petroleum sector, which, with the benefit of hindsight, he underestimated, based on the seeming hand-in-gloves relationship he had with the previous leadership of the CBN, where it appeared he had “easy” access to funds.

Soji Adekunmbi, an Abuja based public policy analyst, in an article in The Cable, proffered solutions to Dangote to enable him navigate the humongous financial quagmire he seems to have found himself, when he posited: “A few options are available to Dangote but the most viable of them is that he should consider divesting some of his shares in the refinery. It may seem a difficult option but it is the best for him given the circumstances.

There are business entities who took a similar path when confronted with some of the challenges seemingly facing Dangote. In Saudi Arabia, the Saudi government sold Aramco, the national oil company to the public when it faced difficulties.

Even Microsoft founder, Bill Gates sold off a majority of his stake in the company retaining a mere five percent interest in the business. Gates took that route after facing anti-trade court cases following Microsoft’s monopolistic nature, which had caused the collapse of several IT companies.

Dangote should do the needful by selling shares to Nigerians as it is obvious given the intricate nature of business in the oil and gas sector particularly the huge capital outlay required to keep a business going, he cannot pull it off alone.”

Opinion

The Prophet’s Mosque, Al-Rawdah, and the Inner Peace of the Visitor’s Mind

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By Abubakar Dangambo

Madinah Al-Munawwarah, the radiant city of the Prophet Muhammad (peace be upon him), occupies a unique place in the hearts of Muslims across the world. Located about 450 kilometers from Makkah, it is a city of peace, spirituality, and immense historical significance. For millions of believers, visiting Madinah is not merely a journey; it is the fulfillment of a lifelong dream.

Unlike many great cities of the world that are known for their skyscrapers, industries, or commercial activities, Madinah is known for something far more precious—tranquility. The moment a visitor enters the city, he is greeted by an atmosphere of calmness and serenity that is difficult to describe in words. The city seems to embrace every visitor with a sense of comfort, reminding them that they are walking on land blessed by the presence of the Messenger of Allah (peace be upon him).

At the heart of Madinah stands the magnificent Prophet’s Mosque (Al-Masjid An-Nabawi), one of the holiest sites in Islam. Within its sacred boundaries lies the house of the Prophet Muhammad (peace be upon him), where he spent much of his life and where he is buried alongside his beloved companions, Abu Bakr As-Siddiq (RA) and Umar ibn Al-Khattab (RA).

The first time I entered Madinah and subsequently stepped into the Prophet’s Mosque to observe the Maghrib and Isha prayers, I was overwhelmed with emotion. Words failed me. My eyes filled with tears of joy and gratitude. For years, I had dreamed of visiting this sacred place, and suddenly I found myself standing within its walls.

As I joined thousands of worshippers in prayer, an indescribable feeling settled over me. My mind became calm, my heart found rest, and my entire body felt a comfort unlike anything I had ever experienced. It was as though every burden and worry had been lifted away. The peaceful atmosphere of the mosque, combined with the spiritual presence of the place, created a feeling that remains unforgettable.

Although we arrived in Madinah late at night from Jeddah, I could hardly wait for dawn. Immediately after the Fajr prayer the following morning, I hurried back to the Prophet’s Mosque to visit the resting place of the Prophet Muhammad (peace be upon him) and his noble companions.

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Standing before the sacred chamber was one of the most emotional moments of my life. Tears flowed freely as I thanked Allah Almighty for granting me the opportunity to fulfill a dream I had cherished for many years. I offered my greetings and salutations to the Prophet (peace be upon him), Abu Bakr (RA), and Umar (RA), praying that Allah would count me among those who sincerely love and follow their noble example.

Another unforgettable experience was praying in Al-Rawdah, the blessed area between the Prophet’s pulpit and his house. The Prophet (peace be upon him) described it as a garden from the gardens of Paradise. Every Muslim who enters Al-Rawdah feels a special connection to history, faith, and spirituality. Being in that sacred space filled me with gratitude and humility. I spent those precious moments in prayer, reflection, and remembrance of Allah, thanking Him for His countless blessings.

What makes Madinah even more remarkable is not only its sacred sites but also the character of its people. The residents of Madinah are widely known for their kindness, hospitality, and respect for visitors. Whether in the streets, markets, hotels, or around the mosque, one encounters smiles, warm greetings, and genuine willingness to help.

The hospitality of the people reflects the legacy of the Ansar—the noble residents of Madinah who welcomed the Prophet Muhammad (peace be upon him) and his companions during the Hijrah. That spirit of generosity and care continues to live on in the city today. Visitors from every race, language, and nationality are treated with respect and dignity, making them feel at home despite being far from their own countries.

Walking through the streets of Madinah is itself a memorable experience. The city is remarkably clean, organized, and peaceful. Around the Prophet’s Mosque, worshippers from every corner of the world gather in unity, demonstrating the universal brotherhood of Islam. Despite the diversity of cultures and languages, everyone is united by the same faith and love for Allah and His Messenger.

My stay in Madinah lasted only two days before I departed for Makkah to commence the rites of pilgrimage. Yet those two days remain among the most cherished moments of my life. The joy, comfort, spiritual fulfillment, and inner peace I experienced are memories that can never be erased.

Even now, whenever I reflect on those blessed days, my heart longs to return. Madinah is not simply a city one visits; it is a city that captures the soul. Its beauty lies not only in its buildings or landmarks but in the tranquility it offers, the history it preserves, and the spiritual connection it nurtures.

As I conclude this reflection, I pray that Allah, the Most Merciful, grants me another opportunity to visit Madinah and the Prophet’s Mosque. I also pray that every Muslim who desires to visit the blessed city will one day be granted that privilege.

May Allah continue to shower His peace and blessings upon our beloved Prophet Muhammad (peace be upon him), his family, his companions, and all those who follow his guidance until the Day of Judgment.

Ameen.

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Opinion

Persecution of Crimean Tatar Muslims and Russia’s Campaign Against Ukrainian Identity

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By Alhassan Bala

The annexation of Crimea by Russia in 2014 marked not only a violation of international law but also the beginning of a systematic campaign to undermine the cultural identity of the Crimean Peninsula’s indigenous people.

The Crimean Tatars, who had already endured one of history’s most devastating forced deportations under Joseph Stalin, now face a renewed threat as Russia continues efforts that many observers say are aimed at eroding their language, culture, and religious freedoms.

According to discussions with representatives of the Crimean Tatar community, the current situation goes beyond cultural suppression. It is, they argue, a gradual process of cultural extinction.

The Crimean Tatars have survived persecution before. In 1944, Stalin ordered the mass deportation of the entire Crimean Tatar population from their homeland to Central Asia. Packed into cattle cars and transported under inhumane conditions, nearly half of the deportees died during the journey or in the early years of exile.

It took decades for survivors and their descendants to return to Crimea and rebuild their communities following the collapse of the Soviet Union.

I recently met several Crimean Tatars, and hearing their accounts of how their grandparents endured displacement, hardship, and persecution was deeply moving.

Their stories are a reminder of the resilience of a people determined to preserve their identity despite repeated attempts to erase it.

Today, more than seventy years after Stalin’s deportations, history appears to be repeating itself in a different form. Rather than relying on mass expulsions, Russia is accused of employing more subtle methods, including institutional discrimination, restrictions on religious practice, and the gradual erosion of linguistic and cultural identity.

Language is central to the survival of any people, and critics say Russian authorities understand this well. Since the annexation, Crimean Tatar-language education has reportedly been significantly reduced.

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Schools that once provided instruction in the Crimean Tatar language have been encouraged or compelled to switch to Russian. Crimean Tatar textbooks have become increasingly scarce, while educators who seek to preserve indigenous-language instruction face growing challenges.

The Ukrainian language has faced a similar decline. Prior to 2014, Ukrainian was widely taught and spoken throughout Crimea.

Today, opportunities to study both Crimean Tatar and Ukrainian have reportedly been reduced dramatically. In many cases, Crimean Tatar language instruction is limited to only a few hours per week, while Ukrainian-language education has largely disappeared from public institutions.

Critics describe this as a form of linguistic colonialism. By restricting access to education in native languages, they argue, future generations become increasingly disconnected from their cultural heritage.

Over time, languages that once flourished in Crimea risk becoming marginalized in the very homeland where they originated.

For the predominantly Muslim Crimean Tatar community, concerns extend beyond language to the practice of their faith.

Human rights organizations have documented reports of mosque raids, arrests of religious leaders, and restrictions on religious education.

The Mejlis, the representative body of the Crimean Tatar people, was banned by Russian authorities as an “extremist organization,” a move widely condemned by international observers.

Young Crimean Tatar men have faced particular scrutiny. Many have been detained and prosecuted under allegations of affiliation with Hizb ut-Tahrir, an organization that is legal in Ukraine but prohibited in Russia.

Human rights advocates have questioned the fairness of some of these prosecutions, citing concerns over evidence and due process.

Reports also indicate that religious literature has been confiscated and that Islamic educational activities have been subjected to increased restrictions.

For many Crimean Tatars, these measures reinforce a perception that maintaining their distinct religious and cultural identity has become increasingly difficult under Russian rule.

Crimean Tatar citizen journalists who document human rights abuses face heavily militarized show trials. Many are sentenced to decades in Russian penal colonies. Journalists face forced disappearances, physical violence, and raids on their homes. For example, Iryna Danylovych, a freelance reporter, was abducted by the FSB and transferred to a Russian prison.

The international community must continue to pay attention to the situation in Crimea. The Crimean Tatars survived Stalin’s attempt to destroy their nation and identity.

They rebuilt their communities from the ashes of exile and deserve the opportunity to preserve what they have fought so hard to reclaim—their language, their faith, their culture, and their homeland.

In this regard, the efforts of the Crimea Platform, an international initiative established to keep global attention focused on Crimea and the challenges faced by its people, remain important.

Through dialogue, advocacy, and international engagement, the platform continues to highlight the plight of Crimeans and the need for a peaceful and just resolution.

Alhassan Bala writes from Abuja, Nigeria.

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Opinion

Senator Barau: 3 Years of Meritorious Service to Humanity as DSP

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By Abba Anwar

As a build up to 2023 general election, Senator Barau I Jibrin, was campaigning to become a Senator for another round, in the 10th Assembly. From Kano North Senatorial District. All his campaign promises then were centered around his primary constituency.

Unknown to him, his victory would open door for him and create an opportunity, for him to become, Deputy Senate President. Alas, after the election of His Excellency Senator Godswill Akpabio, as Senate President. Jibrin was elected his Deputy.

His election as DSP, stemmed from so many considerations, of the gentleman. His credentials and his past contributions and engagements in the National Assembly, starting from being a Member of House of Representatives, when he represented Tarauni federal constituency, from Kano Central, were considered. As such his pedigree gave him, not automatic chance, but edge over others to become the DSP.

During his days as a Member of House of Representatives, when late Right Honourable Speaker Ghali Umar Na’Abba was the Speaker of the House, Jibrin was the Chairman House Committee on Appropriation. The same position he held when he became Senator. Apart from being Chairman Senate Committee on Tertiary Education Trust Fund (TETFund).

His choice or rather election as the Chairman House Committee on Appropriation, was hitherto considered and approved by the entire Honourable members, because of his credentials in the field. Not only that, he was one of the best students during his undergraduate days and postgraduate days, in his chosen area of studies. Which gave him so many inches ahead of others, then.

As Chairman Senate Committee on TETFund, the choice was made on the basis of his love for education, education and education. His genuine support for equipping people with education, at all levels, was considered at the same time. No wonder, his constituency, witnessed and are still witnessing his unmatched and unparalleled contributions to the education of his people, under Barau Jibrin Scholarship Scheme. Apart from other areas of intervention in the sector.

His service to humanity cuts across constituencies, party lines, geographical boundaries and ages, in the last three years of his leadership as Deputy Senate President. Even some parts of Nigeria, benefited from his legislative efforts. In his primary constituency, he sponsored hundreds of students for undergraduate studies in some carefully selected Nigerian universities. While dozens were selected, also after diligent screening, for their postgraduate studies outside the country.

Modern fields of study such as Software Engineering, Robotics Engineering, Artificial Intelligence, and Chemical Engineering, in which he sponsored many students, are testament to his legacy and reflect his focus on human development. He believes that education builds capacity, capability, and compatibility in life.

In the education sector he initiated and presented a Bill for the establishment of Federal Polytechnic, Kabo, that was established with 17 approved programmes in Science, Engineering and Health Sciences. He further lobbied and followed-up legislative process; which also provided infrastructure for the Polytechnic to be transformed to University of Science and Technology, Kabo.

He initiated, lobbied and followed-up for the Federal College of Education (Technical) Bichi, to Federal University of Education Bichi. The same effort was applied to the transformation of the Federal College of Education, (FCE) Kano, to Yusuf Maitama Sule Federal University of Education, Kano. He initiated and lobbied for the renaming of the University, after the name of the former Permanent Representative of Nigeria, to the United Nations, Dan Masanin Kano Yusuf Maitama Sule.

He was able to facilitate the establishment of 13 National Open University of Nigeria (NOUN) Study Centres, across all 13 Local Government Areas, of his constituency, Kano North. Also facilitated for the establishment of Federal University Dutsin-Ma 6 Satellite Campuses and four (4) more Study Centres facilitated in Gwarzo, Danbatta, Dawakin Tofa, Gabasawa local governments.

His Excellency, Deputy Senate President, constructed blocks and made renovation of many primary and secondary school in Kano North. Apart from helping teachers and students with the means of transportation to schools for teaching and learning.

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Under other, varying empowerment programmes, Senator Jibrin distributed 130 vehicles to transport associations, across 13 local governments under his constituency. A total number of 1,000 motorcycles were distributed to headmasters, teachers and other residents in the rural communities.

When students benefited from 1,300 tricycles, 1,300 sewing machines, 1,300 noodle-making machines and flour to women, 1,300 deep freezers and 1,300 bicycles

Under security sector, more specifically his direct support to Nigeria Police Force, the Distinguished Senator donated One thousand (1,000) operational motorcycles. The handing over of the motorcycles took place at Bompai Police Headquarters, Kano. Of which the distribution was at 700 for Kano North Senatorial Zone and the remaining 300 for State Command Headquarters. The donation was purposely made to enhance mobility, rapid response, and reach hard-to-access areas by our Police officers.

He donated other operational vehicles to the Police Command, Bompai, among other donations of vehicles to other police formations, particularly, in Kano North. As he renovated parts of Kano State Police Headquarters. As he further constructed many police stations in different parts of the state.

Our able DSP constructed a modern Police Secondary School in Kabo, his hometown. He is not only concerned with operational vehicles and infrastructure, he is mindful of aiding his people to get recruited into the available spaces under our security system.

Hence he facilitated the recruitment of 120 security personnel as Police Cadets, Economic and Financial Crimes Commission (EFCC) officials, and Federal Fire Service officers from Kano North. After the completion of their training, he hosted them at a dinner in their honor, at Bristol Palace Hotel, Kano. As he charged them on integrity, patriotism, service to the nation and loyalty to their respective formations.

To further enhance security in the streets across his constituency, he helped in the installation of one thousand (1,000) solar-powered streetlights across Kano North, to improve nighttime patrols. As he rushed to Kano Central donating for market security, where he donated Hilux, 5 motorcycles for patrol at Farm Centre phone market.

As our Distinguished Senator believes in re-positioning of our security system and architecture, he sees reason in security infrastructure development. This informs his patriotic decision in facilitating for the establishment of
NSCDC Training College, in Gwarzo, Nigeria Police Service Commission Training Institute, in Kabo and Nigeria Immigration Service Training School, in Bichi.

Under agriculture the biggest project is the long awaited programme on maize and rice cultivation to boost food security, under Barau Initiative for Agricultural Revolution in the Northwest (BIARN), that was launched in April 2025. With the intention of the distribution of about Three Billion Naira (N3b) interest-free loan scheme for 558 young farmers across the 7 states of the North West.

As beneficiaries would get access to, ranging from One Million Naira (N1m) to Two Million Naira (N2m) up to Five Million Naira (N5m) per individual beneficiary. What is delaying the implementation of the programme is the paucity of Funds from the partner organization, Bank of Agriculture (BOA).

Under nfrastructural development, road construction and rehabilitation
specifically, he lobbied for Kano-Gwarzo-Dayi federal road among others. Other infrastructure in Gwarzo, where roads, bridge, water projects and installation of solar lights, became the order of the day, under his interventions. So also hospital construction and upgrades, in the same Gwarzo local government.

Community projects like construction and rehabilitation of Mosques, Palaces and training institutes are all over.

Under Youth and Women Empowerment for economic development, he initiated the distribution of Twenty Thousand Naira (₦20,000) only. For 10,000 less-privileged across all the 44 LGAs in the state. With Kano North taking the largest share of 6,500 beneficiaries, at 500 per LGA.

Just recently DSP launched monthly One Hundred Thousand Naira (₦100,000) only, capital support, for 1,300 beneficiaries, from the Month of February 2026 to December 2026. A year round project. A total of 18,200 beneficiaries, will benefit from the sum of Two Hundred and Eighteen Million, Two Hundred Thousand (₦218.2m) only.

Under other, varying empowerment programmes, Senator Jibrin distributed 130 vehicles to transport associations, across 13 local governments under his constituency. A total number of 1,000 motorcycles were distributed to headmasters, teachers and other residents in the rural communities.

When students benefited from 1,300 tricycles, 1,300 sewing machines, 1,300 noodle-making machines and flour to women, 1,300 deep freezers and 1,300 bicycles

Sports & Community Development are not left behind. As 150 football teams per local government benefited with Jerseys and balls. Totaling 1,950 teams across Kano North.

It is on record, as many people, especially those from Kano North, know, DSP did more than what I listed here. One piece of material cannot encapsulate all this contributions and speak out at a time. But this gentleman did a lot and is committed to step further.

Anwar writes from Kano
Sunday, 7th June, 2026

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