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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.

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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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NYSC Distances Self from NANS Proposed N200 Mobilisation Levy

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By Yusuf Danjuma Yunusa

The National Youth Service Corps has distanced itself from the proposed N200 annual levy by the National Association of Nigerian Students, saying payment of the levy is not a requirement for students seeking mobilisation for national service.

The NYSC stated this in a statement shared on its official X account on Tuesday, following reports that NANS was considering linking payment of its dues to the NYSC mobilisation process.

The Scheme said it had neither discussed nor agreed to the proposed arrangement with NANS, adding that it had not entered into any Memorandum of Understanding with the student body on the collection of any levy.

“The NYSC wishes to state unequivocally that it has not, at any time, discussed, agreed to, or entered into any Memorandum of Understanding with the National Association of Nigerian Students regarding the collection of any levy from students in connection with mobilisation for national service,” the statement said.

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The NYSC explained that its mobilisation process was conducted through established official channels involving the management of the Scheme and the Heads of Corps Producing Institutions, which provide information on their graduates for mobilisation.

“The mobilisation process is neither linked to nor contingent upon the activities of any student association or organisation,” it added.

The Scheme consequently advised prospective corps members and students to disregard any information suggesting that payment of a levy to NANS or any other student association was required for NYSC mobilisation.

“For the avoidance of doubt, NYSC mobilisation process is straightforward and is conducted through established official channels,” the statement said.

The clarification followed comments by the NANS National President, Akinteye Babatunde, that the association was considering a system under which students would pay an annual N200 due.

Babatunde had also indicated that NANS would work with the NYSC and that students might be required to show proof of payment of the association’s dues before being mobilised for camp.

The NYSC, however, reaffirmed its commitment to maintaining a transparent, credible and efficient mobilisation process in line with existing government policies and guidelines.

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Kano Islamic Scholar Declares Kano Widow Marriage Programme ‘Haram’, Urges Government to Stop It

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A prominent Kano Islamic scholar, Sheikh Alaramma Hadi Inuwa Maihula Sanka, has criticised the Kano State Government’s widow marriage programme, describing the practice as “Haram”, urging the government to discontinue it.

Sheikh Maihula made the position known during an interview with journalists in Kano on Tuesday evening, arguing that marriage, like other major religious obligations, is subject to a person’s ability and means.

According to him, Islam does not compel a person who lacks the financial capacity to undertake marriage, just as obligations such as Zakat and Hajj are not imposed on those without the means to fulfil them.

“Marriage, Zakat and Hajj are never made obligatory on anyone unless they have the means,” he said, citing teachings contained in the Qur’an, particularly Suratul Nur, as well as Hadith narrated by Imams Bukhari and Muslim.

The cleric therefore questioned the use of public funds by state governments to organise or finance special marriage programmes, describing the collection or expenditure of public resources for such purposes as religiously unacceptable.

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He argued that government resources should instead be channelled into addressing pressing social challenges affecting citizens, including inadequate healthcare, water supply and support for vulnerable workers.

“Kano city does not have enough hospitals, there are not enough qualified doctors, there is no Portable drinking water, and pensioners have not all been settled,” he said.

Sheikh Maihula also questioned the concentration of specialist healthcare services in Kano metropolis, saying residents from distant local government areas are forced to travel to the city to access medical treatment.

He specifically mentioned Gwarzo, Takai and Tsanyawa, asking why similar hospitals could not be established in such communities to bring healthcare closer to residents.

“Since Gwarzo, Takai or Tsanyawa, the community has been coming to Murtala Muhammad Specialist Hospital, and this hospital was built in 1928. Why can’t a similar hospital be built in Takai, Tsanyawa or Gwarzo?” he asked.

The Islamic scholar also warned that government-sponsored marriages could create additional financial responsibilities for the state if couples subsequently have children and require assistance with their upkeep.

He argued that rather than spending public funds on marriage ceremonies, governments should empower widows and other vulnerable women through vocational training, entrepreneurship support and other forms of sustainable livelihood assistance.

Maihula urged the Kano State Government, as well as other states considering similar programmes, to reconsider the initiative and redirect resources towards programmes that would enable beneficiaries to become economically self-reliant.

He maintained that empowering women to earn sustainable livelihoods would provide longer-term benefits than one-off marriage interventions.

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TMS Inaugurates Kano North’s 13 LG Executives and Empowers Social Media Representatives

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The Tinubu Maliya Shonikan (TMS) Organisation has inaugurated its local government coordinators across Kano North Senatorial District, with a pledge to strengthen grassroots mobilisation and support the All Progressives Congress (APC) ahead of future political engagements.

The inauguration ceremony, which was held on Sunday at Amani Event Centre, Nassarawa GRA, Kano, was led by the organisation’s leader, Alhaji Ibrahim Yusuf Garo, popularly known as Shonikan, alongside the Kano State Chairman of TMS, Barrister Nura Abdullahi Bagwai.

Speaking at the event, the organisers said the establishment of TMS in Kano North was motivated by the desire to support and promote programmes and political activities associated with Senator Barau I. Jibril Maliya, whom they described as having contributed significantly to the development and representation of the area.

According to the organisation, the initiative is also intended to mobilise support for the APC and strengthen its grassroots structure across Kano North and the wider Kano State.

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As part of the inauguration, social media agents from 141 wards across Kano North were provided with android tablet pc and data support to enable them to effectively communicate the activities, programmes and achievements of the organisation and its political allies through digital platforms.

The leadership of TMS said the provision of the devices and monthly data support formed part of a broader strategy to establish an organised and effective digital communication network across the senatorial district.

The organisation further announced plans to introduce additional programmes and initiatives aimed at strengthening grassroots mobilisation and contributing to the success of the APC from the grassroots to the state level.

The event attracted important diginataries like MD Hadejia Jama’are River Basin Development Authority, Engr. Rabi’u Suleiman Bichi whonis the Guest Speaker if rhe Occasion, APC National Vice Chairman North West Hon. Garba Datti Mohammed, the commissioner National Assembly Service Commission Hon. Yusuf A. Yusuf Tabuka, Representative of rhe State Minister Housing and Urban Development, APC leaders, members, supporters and representatives of the organisation from across Kano North.

The organisers expressed appreciation to God for the successful and peaceful conclusion of the inauguration ceremony, describing the event as an important step towards strengthening the organisation’s structure and activities across the senatorial district.

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