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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.

“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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Emergency Rule: Punch Editorial went overboard -CRP

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Senator Bola Ahamd Tinubu

 

A grassroot social political organisation, Concerned Rivers People, CRP has carpeted the Punch Editorial of April 15, 2025, declaring that it went overboard.

This was contained in a statement issued and signed by Alex Nwogu, Public Relations Officer of the Concerned Rivers People declaring that:

“Our attention has been drawn to an editorial in today’s Punch Newspaper, under normal circumstances, we could have ignored it but the narrative captured in the said editorial are misleading.

“It’s difficult to believe that the Editorial team did not do a thorough investigation that’s always associated with it before the said publication as structures of governance are set aside under Emergency Rule.

“The Sole Administrator is in place because of the State of Emergency. How is he expected to work with officials of the suspended Administration.

“Before then the Supreme Court had voided the Local Government Election that brought the sacked Council Chairmen. The question that the Editorial failed to address is; are those appointed from Akwa Ibom or Abia State?

“Or better still are they from anywhere close to Lagos or Ogun State? This the editorial adequately failed to thrash out.

“Again, from what purview is Punch trying to create an impression that there’s a hidden agenda in the whole arrangement in Rivers State?

“An Emergency Rule is simply:”an urgent, unexpected, and usually dangerous situation that poses an immediate risk to health, life, property, or environment and requires immediate action.

“The Sole Administrator has six months to bring about peace, reconcile aggrieved parties and ensured that residents life and property are secured.

“In what way has the Sole Administrator violated any of the rules as his first mission in Rivers State is to troubleshoot which he has been doing immediately he assumed office.

“The job of the Sole Administrator is to go to areas that there are troubles in Rivers and shoot at the trouble to bring about peace.

“The local government was one heavily troubled area and to bring about peace he appointed fresh administrators to peacefully run the affairs of the councils.

“Calling for the reinstatement of the suspended governor was the climax smirking that all is not well with the Editorial.

“Siminalayi Fubara was the purveyor and advocate of all that has transpired in Rivers State calling for his reinstatement barely two months after he was suspended creates a very wrong impression about the Editorial.

“CRP is demanding that the Punch Editorial should be reviewed and all necessary avenues should be explored to get the right information before jumping to press.

“It is not a healthy development for journalism that such an editorial should emanate from a reputable newspaper like Punch without weighing it from all angles.

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Federal Government Declares Public Holidays

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The Federal Government has declared Friday, April 18 and Monday April 21 as public holidays for Good Friday and Easter Monday, respectively.

The Minister of Interior, Dr Olubunmi Tunji-Ojo, announced the holidays on behalf of the Federal Government.

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Tunji-Ojo extended heartfelt congratulations to Christians across the country on this joyous occasion.

erior, Dr Olubunmi Tunji-Ojo, announced the holidays on behalf of the Federal Government.

Tunji-Ojo extended heartfelt congratulations to Christians across the country on this joyous occasion.

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Court Jails Man Four Years for Refusal to Accept Naira As Legal Tender

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Justice Alexander Owoeye of the Federal High Court sitting in Ikoyi, Lagos, on Tuesday, April 15, 2025, convicted and sentenced one Uzondu Precious Chimaobi to four years imprisonment for his refusal to accept the Naira as a legal tender.

 

Chimaobi was arraigned by the Lagos Zonal Directorate 1 of the Economic and Financial Crimes Commission, EFCC, Awolowo Road, Ikoyi, Lagos, on February 5, 2025 on a two-count charge bordering on refusal to accept the Naira as a legal tender.

 

One of the counts reads: “That you, Precious Chimaobi Uzondu, on the 10th of December 2024, in Lagos, within the jurisdiction of this Honourable Court, refused to accept Naira (Nigeria legal tender) by accepting the sum of $5700 ( Five Thousand Seven Hundred USD) as a means of payment for a purchase of a cartier diamond bracelet with serial number (12345678) and you, thereby , committed an offence contrary to Section 20 of the Central Bank of Nigeria Act, 2007.”

 

He initially pleaded not guilty to the charge, leading to his full trial.

 

Subsequently, the prosecution presented its first witness, PW1, Owolabi Oyarekhua Jude, an operative of the EFCC.

 

Led in evidence by the prosecution counsel, H.U. Kofarnaisa, Jude told the court that “the Commission received intelligence on the activities of a jewelry company called Unlimited Jewellers Limited, “whose owner is one Uzondu Precious Chimaobi.

 

“The Company, which deals in jewelry at Atlantic Mall, Chevron Drive, Lekki, Lagos intentionally tags and sells its products in Dollars as against the CBN Act, 2007 ,which stipulates Naira as the only legal tender in Nigeria.”

 

Continuing, he added that “ Subsequently, a covert operation was carried out , where an undercover operative of the Commission disguised as a customer to purchase a Diamond Nail bracelet that was tagged $6000 and bought it for $5700.

 

“The company refused to receive Naira and demanded Dollars as a means of payment. The payment was made and receipt was issued in Dollars . The owner of the company was arrested and taken to the Commission’s office.”

 

However, at the resumed sitting on April 14, 2025, the defendant opted to change his “not guilty” plea to “guilty.

 

Consequent upon his guilty plea, Kofarnaisa, prayed the court to rely on the evidence earlier given by the investigating officer, and admit the same in convicting the defendant.

 

Kofarnaisa, thereafter, tendered the defendant’s statement and other evidence to further prove his guilt and they were admitted by the court.

 

Justice Owoeye then adjourned till Tuesday, April 15, 2025 for ruling.

 

Delivering judgment, they found the defendant guilty and gave him an option of fine of N50,000( Fifty Thousand Naira) on count one.

 

The Judge sentenced him to four years imprisonment, with an option of fine in the sum of N600,000 on count two.

 

His Cartier Diamond wristwatch was ordered forfeited to the Federal Government of Nigeria.

 

The convict bagged his imprisonment when he refused to accept Naira by accepting the sum of $5700 ( Five Thousand Seven Hundred USD) as a means of payment for a purchase of a cartier diamond bracelet. He was charged to court and convicted.

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