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Dangote says Nigeria Can Become a Refining Hub

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Aliko Dangote

 

Nigeria must enhance its crude oil production capacity and effectively manage its crude supply to ensure adequate feedstock for domestic refineries, in order to transit from a net importer to a net exporter of petroleum products.

Chairman of Dangote Refinery and Petrochemicals Company Limited, Aliko Dangote, made this assertion during his keynote address at a summit held in Lagos by the Crude Oil Refinery Owners Association of Nigeria (CORAN). The event attracted top government officials and key stakeholders from the midstream and downstream sectors.

Addressing Nigeria’s potential as a refining hub, Dangote expressed concern that, despite producing over 3.4 million barrels of crude oil per day, Africa imports around 3 million barrels of petroleum products daily. He noted that these imports, primarily from Europe, Russia, and other regions, are estimated to cost approximately $17 billion in 2023.  He urged that Nigeria could capitalise on this situation to become a net exporter of refined petroleum products, as the markets would be more competitively served from Nigeria.

Both the crude oil and the petroleum products will travel shorter distances. The logistics costs of floating storage will be eliminated, and countries can purchase their petroleum product requirements just-in-time. Nigeria and Africa can become completely self-sufficient, and we can keep all the value on our shores. We have done it in cement, and we can certainly do it for petroleum products.

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“It is worth noting that the Dangote Refinery already produces sufficient diesel and jet fuel to meet Nigeria’s demand. We recently started the production of PMS and will soon ramp up to meet Nigeria’s needs. Our refined products have been exported to diverse markets, including Europe, Brazil, the UK, the USA, Singapore, and South Korea,” he added.

Represented by Engr. Mansur Ahmed, Group Executive Director of Dangote Industries Ltd, Dangote emphasised that Nigeria must develop a refining capacity of 1.5 million barrels per day and prioritise domestic crude supply obligations to seize this opportunity. Acknowledging the arising and future challenges, he urged the government to incentivise investors, contrasting this with the Dangote Oil Refinery, which was built without any government incentives.

It is unfortunate that while countries like Norway are putting oil proceeds into a future fund, in Africa, we are spending oil proceeds from the future. We will also need to prioritise the implementation of domestic crude supply obligations. We will need to expand our crude oil production capacity to support demand from new refining capacity. The government of President Bola Ahmed Tinubu is taking active steps to achieve this through fast-tracking IOC divestments and other initiatives,” he stated.

Emphasising that global developments in the petroleum sector, particularly in Europe, will disrupt historical trade flows for refined petroleum products in Africa, Dangote stated that Nigeria is uniquely positioned to capitalise on this opportunity and become a significant player in the global oil industry. He called for consultation, collaboration, and cooperation among stakeholders.

“As a vibrant exporter of refined products, Nigeria will witness an improvement in its balance of trade and generate much-needed foreign currency. Nigeria’s potential as a refining hub is clearly not in doubt; let us work together to make it happen,” he urged.

The foremost industrialist noted that the summit’s theme, “Making Nigeria a Net Exporter of Petroleum Products,” would have seemed unrealistic a few years ago, and added that despite being Africa’s largest crude oil producer, Nigeria has historically relied on imports to meet its refined petroleum product needs.

However, he emphasised that the Dangote Petroleum Refinery and Petrochemicals is poised to transform Nigeria from a “net importer” to a “net exporter” of refined petroleum products, establishing the country as an emerging player in global downstream trade flows; with refined products already exported to various markets, including Europe, Brazil, the UK, the USA, Singapore, and South Korea.

Commending Dangote for this transformation, Chairman of IPPG/Waltersmith Refinery & Petrochemicals Co. Ltd, Abdulrazaq Isa, called on the government to support domestic refiners by ensuring the availability of crude, adhering to domestic crude supply obligations, and implementing effective pricing and monitoring measures to prevent smuggling.

Chairman of CORAN’s Board of Trustees and CEO of Integrated Oil & Gas, Captain Emmanuel Iheanacho (rtd), remarked that the Dangote Oil Refinery has set a high standard by producing Euro-V products, thus protecting citizens from exposure to high-sulphur products. He noted that transforming Nigeria into a net exporter will bring numerous benefits but reiterated the need for increased investment to boost crude production, lamenting that Nigeria loses approximately $83 billion annually by not meeting its OPEC quota.

While acknowledging that tank farms remain essential despite local refining, Iheanacho urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to consider cancelling import licences, as Nigeria can now meet its local demand.

Chairman of Major Energies Marketers Association of Nigeria (MEMAN), Huub Stokman,  stated that Nigeria is on the verge of becoming Africa’s refining powerhouse, which will significantly boost the economy. The Chairman of CORAN, Momoh Oyarekhua, also expressed concern over challenges related to crude supply and stated that domestic refiners will work with regulators and stakeholders to address these issues.

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lopkobiri,  assured that the government would continue to refine frameworks to enhance crude production and support domestic refineries. His counterpart from the Ministry of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, emphasised the Tinubu-led administration’s commitment to ensuring value addition for mineral resources before export.

Two panel sessions were held to discuss Nigeria’s downstream petroleum refining sector and its potential impacts, as well as policy strategies for achieving self-sufficiency in petroleum products.

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Dangote Cement Ibese Fetes Senior Citizens in Host Communities

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DSC9925; (L- R  from Back), Novia Hospital CEO, Erelu Yeye Abiye, Inegbenijie. Lydia  David; Dangote Cement Ibese Plant Chief Finance Officer, Akin Abe; Dangote Cement Ibese Plant Director, Roy K. Uttam; Dangote Cement Plc, Group Head, Social Performance, Wakeel Olayiwola; Dangote Cement Ibese Plant, General Manager, Human Asset Management / Admin, Olugbemiga Aina; (Beneficiaries in front), Modupe Olaoluwa Bankole and Hakeem Akinsola, during the Presentation of WheelChairs and other mobility aids to the some  Senior Citizens at the Dangote Cement Ibese Plant at the 2024 Edition of One - Day Care Program for the Host Communities Senior Citizens, an Ibese Plant, Ogun State at the weekend.

Dangote Cement, Ibese Plant at the weekend extended the frontier of its social investments in the wellbeing of its 17 host communities when it hosted the senior citizens in the communities offering them free medical services and mobility equipment for the people with disabilities including wheelchairs

The Company said the gesture was aimed at complementing the effort of the government in improving the lives of the people of Ogun state especially those in whose territory the leading cement manufacturer operates.

Tagged “A Day-Out with Senior Citizens 2024”, the well-attended annual event saw the elderly ones being led in physical exercise, receiving health talks, medical checks, free drugs and other food and household items like rice, semo, honey, beverages, bathing soaps, detergent, clothing and cash incentive.

In his address of welcome, the Dangote Cement, Ibese Plant Director, Roy Uttam said the event was aimed at increasing the level of socialisation, engagement, emotional and mental wellbeing among the elderly around its host communities.

Uttam, pointed out that the management of Ibese Plant remain deeply committed to its responsibilities under the Community Development Agreement signed in 2022, saying “we will continue to prioritise the transfer of both economic and social benefits to our host communities, focusing on areas such as health, education, infrastructure, and empowerment.

“It is gratifying that our social investment strides are making meaningful impact in the lives of people across the host communities. We are determined to keep improving and broadening our initiatives, as we work together for the benefit of all.

“As elders who have devoted your youthful lives to the growth and development of your communities, the focus now should be on your health and well-being and the overall goodness of the society. This event is designed with your health in mind, as well as to offer an opportunity to reflect and connect with one another to promote longevity,” he said.

While reveling on the success of the maiden edition last year, Mr Uttam recalled that “we hosted 50 elderly members of our host communities for the first time in the history of this Plant. It was a memorable event filled with activities that demonstrated deep recognition for this all-important people in our society and promoted healthy living among them. It was a significant milestone for the Plant and the communities.

“We have made significant improvements this year, including the identification of five persons with disabilities from our host communities, who will each receive mobility aids to enhance their quality of life. This is just one example of how we continue to expand the scope of our social investments to create even greater impact”.

Uttam assured the host communities that the Plant would continue to live up to its responsibilities as regards the execution of the existing Community Development Agreement (CDA) even much more beyond  saying some of the social investment initiatives of the Plant when well appraised, go beyond the letters of the signed CDA.

The Dangote Cement boss noted with nostalgia that the company’s social investment strides are making meaningful impact in the lives of people across the host communities and promised that the management was “determined to keep improving and broadening our initiatives, as we work together for the benefit of all.”

The Plant Director noted that In line with the company’s local content initiative, it had retained the services of Novia Hospital Services, a local healthcare provider, to assist in making this event a success. He assured the people of Dangote Cement’s continued support and believe that with the people’s cooperation and collaboration, the management will continue to build on “our shared vision of peace and prosperity”.

In his own comment, the Group Head of Social Performance, Dangote Cement Plc, Mr. Wakeel Olayiwola said the whole idea about hosting the elderly ones in the host communities borders on carrying along the old ones who are the foundation upon whom the new generations are building on. “They also need to be active in their old age”, he stated.

Responding on behalf of other elders, a beneficiary, Pa Michael Oderinlo from Ijako-Orile host community thanked the management of Dangote Cement for the gesture especially for reaching out to the elders which he said was not a common practice among business organizations.

Said he:” it is a very rare gesture by a business organization to take special interest in the old people and cater to their wellbeing”.

Also another beneficiary of the wheelchair, Modupeola, Olaoluwa Bankole described the wheelchair donation as very touching and timely saying she now has a new lease of life with the mobility aid andtanked the Dangote Cement management for coming to her aid.

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Age Won’t Stop Atiku from Contesting 2027 Presidential Election- Campaign Director Replies Makinde 

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A two-time Director of Youth Mobilisation in the Atiku Abubakar Presidential Campaign in 2019 and 2023, Hon. Dimeji Fabiyi, has said that age cannot stop the former vice president from contesting the 2027 presidential election.

Fabiyi was reacting to the remarks by Governor Seyi Makinde of Oyo State on the criteria for presidential candidates.

Governor Makinde had insinuated that age was a limiting factor for presidential hopefuls in the party.

Though Atiku’s name was not mentioned by Makinde, Atiku, who is still nursing presidential ambition in the next general election, will be 81 years old by 2027.

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Fabiyi in his response to Makinde, admonished the Oyo State governor “to devote more time to reading good books and familiarise himself more with intellectuals, instead of keeping the company of alcoholics, so that when next he speaks, he won’t be mistaken for someone who prides himself for drinking 40 years old whiskey.”

FCT minister Nyesom Wike, who is a close ally of Makinde, had last year said he was drinking 40-year-old whiskey at the time Atiku lost the 2027 election.

Fabiyi also noted that ‘’Atiku is of sound mind and body, with the intellectual firmament that measures far ahead of Makinde.”

Fabiyi noted that while Atiku may be older than Makinde, he has the experience and a cosmopolitan ability to solve problems.

He said: “As a matter of fact, I challenge Seyi Makinde to an intellectual contest with Atiku, and we shall see how his arrogance and presumed youthfulness will be humbled.

“I have known Atiku for almost three decades, and I can tell you for free that he’s an avid reader. When Seyi Makinde is in town, he should seek out how resourceful and flourishing Atiku’s library is.

“Atiku is not a connoisseur of expensive wines and doesn’t keep the company of cringe drinkers. Rather, he’s a lover of books who reads widely.

“Unless Makinde believes that leadership is determined by aerodynamic strength, he should have been more guided before making a comment that makes him look like a clown.”

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INEC has declared Governor Lucky Aiyedatiwa the winner of the Ondo governorship election

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The Independent National Electoral Commission (INEC) has declared Lucky Aiyedatiwa of the All Progressives Congress (APC) as the winner of the Ondo State governorship election held on Saturday.

Aiyedatiwa defeated his closest rival, Mr Agboola Ajayi of the People’s Democratic Party (PDP), securing 366,781 votes to Ajayi’s 117,845. The APC clinched victory in all 18 local government areas of the state.

The Labour Party (LP) and the Zenith Labour Party (ZLP) polled 1,162 and 2,692 votes, respectively.

 

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