Author: Victor Ogunyinka

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Govt’s support for Dangote Refinery will encourage further investments in downstream ― MAN

Post author By Victor Ogunyinka
Post date November 13, 2024
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Manufacturers Association of Nigeria (MAN) have solicited the support of both Nigerians and the government for Dangote Refinery, to enable it to perform optimally.

The support they canvassed will also serve as an impetus for other investors to invest in the downstream sector of the petroleum industry in the country.

The President of MAN, Otunba Francis Meshioye, who made the call after a tour of the Dangote Petroleum Refinery, Petrol Chemical Complex and Fertilizer Plant advocated that Nigerians and the government should do all they can to support the multi-billion-dollar company, which he described as a source of pride and a gift not only to Nigeria but also to the African continent and the whole world.

He described the Dangote Refinery as a game-changer in the Nigerian oil and gas industry, saying that it is not only creating jobs and driving economic growth but also contributing to our nation’s energy security and self-sufficiency.

According to him, the project is quite inspiring, and he admired the inspiration of the promoter of the project, Aliko Dangote. He said: “To have been inspired to establish this facility is very magnificent, it is the first ever in Africa and the first ever of such refinery in the whole world. It has many first, first and first.”

The company has the capacity to produce all our needs locally, petroleum, and other similar products: no one would come to the facility and he would not be inspired or encouraged to ensure that all the support that the company requires should be given to it.

The MAN President said the government should do all that is humanly possible to ensure that the facility works Optimally. “It is prudent and expedient that the necessary supports are given to the company for the economic benefits of Nigeria.”

“If the facility can produce 650,000 barrels of crude per day and Nigeria is producing far above this volume per day, she should give the facility all crude it needed to produce”

He said, apart from the fact that the facility can give Nigerians what they need locally, the excess will be exported, and when they are exported, the country benefits because it will earn foreign exchange for the government.

“So, whichever way we look at it, the facility requires the government’s support to be able to operate optimally. We have seen the laboratory which is in a class of its own. It is first among equals around the world. It is functioning very well. It is a complex on its own.

With this kind of facility that starts from quality control to quality assurance, just to ensure that the harmful effects of the products are at zero level, what can be greater than this? This is very unique and I will encourage all stakeholders to give maximum support, and not by the way support, but maximum support.”

“I cannot see anything that is lacking in this company, we have been here since morning and went through all the units. The facility can deliver products between 1760 trucks to 1800 trucks per day. So if you have such several trucks going out of the facility a day to various destinations in Nigeria, so many people will benefit from it. There will be more jobs, many families will be comfortable because of the jobs this will create, many artisans will benefit and it will have a spillover effect on so many sectors of the economy.

If they can produce AGO, gasoline and Jet A fuel, this is good and the government should have no reason not to ensure the facility gets its backing to carry out its activities, because it is going to benefit massively.”

The MAN boss who stated that his organization is an advocacy group, said to a large extent it will support the Dangote Refinery by pushing its case with the government, and also solicit the support of necessary government agencies that can ensure that it operates fully.

The association, he said, always discusses with the government issues that affect its members and it has always listened to it , and always finds solutions to those issues, stating further that Dangote Refinery’s case will not be different.

“The sheer scale and ambition of this project is truly impressive, and we applaud the vision and determination of the Dangote Group in making this refinery a reality.

As manufacturers, we understand the importance of reliable and affordable energy in driving our businesses forward. The Dangote Refinery will undoubtedly have a positive impact on the entire manufacturing value chain, providing a reliable source of fuel and petrochemical products that are essential for capacity utilisation and value addition.

“I believe that the success of the Dangote Refinery serves as an inspiration to all of us in the manufacturing sector. It demonstrates what is possible when we combine innovation, technology, and investment to create world-class facilities that benefit the entire nation.”

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Oil cabals crippled govt refineries, now working against Dangote Refinery ― Pastor Adeboye

Post author By Victor Ogunyinka
Post date November 12, 2024
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The General Overseer of the Redeemed Christian Church of God (RCCG), Pastor Enoch Adeboye, has urged Nigerians to pray for divine intervention in the face of efforts by unscrupulous oil marketers to thwart the operations of the Dangote Petroleum Refinery, following the previous sabotage of Nigeria’s four state-owned refineries.

The respected clergyman made the call for nationwide prayers during the November 2024 Abuja Special Holy Ghost Service themed ‘Total Restoration’, which held in the capital city. While Adeboye did not explicitly name the Dangote Petroleum Refinery, his remarks echoed the ongoing attempts by oil marketers to prevent the refinery from functioning as it was designed to.

The Dangote Refinery based in Ibeju-Lekki, Lagos is the only facility currently refining petrol in Nigeria, and Adeboye’s comments reflected the dispute between the refinery and oil marketers, who seek to continue importing fuel for personal gain.

Pastor Adeboye reminded the congregation that it was God who raised Aliko Dangote to establish a refinery after years of failed attempts to revive Nigeria’s four public refineries, which had consumed billions of Naira with little result. He questioned the persistence of fuel imports despite Nigeria’s status as a major crude oil producer.

“Are we under a curse?” he asked. “We have four refineries, we poured all kinds of money into them, none of them is working. But God raised someone to build a refinery that works. He is not my relative, he is not from my village. He is not even a Christian, but he is a Nigerian who says, ‘Why should my people suffer when I have the means to build a refinery that can work?’ Now he is refining petrol, and some people want to stop him from selling it, so they can keep importing.”

Adeboye also pointed out the damage caused by the fuel subsidy, describing it as a significant drain on Nigeria’s resources, contributing to the country’s mounting debts and corruption. He stressed that when President Bola Ahmed Tinubu announced the end of the subsidy in 2023, Nigerians largely welcomed the decision, but oil marketers, who benefitted from the subsidy regime, were furious.

These marketers, the renowned pastor claimed, have formed alliances with some International Oil Companies (IOCs) and other powerful interests to obstruct the Dangote Petroleum Refinery. This includes restricting access to crude oil, forcing Dangote to import crude from countries like the United States, among others.

He called for prayer for the total restoration of the country, noting that the Nigerian people are suffering the consequences, as the prices of essential goods have soared, pushing many items beyond the reach of ordinary citizens. “The masses are the ones suffering because these marketers, who are bent on keeping imports alive, already have more money than they can ever spend,” he said.

Despite the Dangote Petroleum Refinery’s capacity to meet Nigeria’s entire demand for petroleum products – and even to export surplus fuel – oil marketers continue to pressurise the government to allow ongoing petrol imports. This has placed additional strain on the Naira, which has continued to depreciate.

Recently, the Crude Oil Refineries Owners Association of Nigeria (CORAN) urged the government to protect local refineries from unfair competition posed by importers and international petroleum traders, in line with provisions in the Petroleum Industry Act (PIA).

Tags Pastor Adeboye on Dangote Refinery

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Deregulation not a license to blend off-spec products, jeopardise national interest, Dangote tells Pinnacle Oil

Post author By Victor Ogunyinka
Post date November 5, 2024
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Dangote Petroleum Refinery and Petrochemicals has advised Pinnacle Oil and Gas Limited that deregulation should not be used as a justification for the importation of off-spec petroleum products or the undermining of Nigeria’s national interests.

The refinery made this statement in response to remarks by Robert Dickerman, CEO of Pinnacle Oil and Gas Limited, concerning the importation and blending of petroleum products, which he framed within the context of a “deregulated commodity market.” Dangote Petroleum Refinery said that his argument for a deregulated market could not obscure the serious implications of his actions, which, it claimed, not only threatened the integrity of Nigeria’s energy sector but also endangered the welfare of its citizens.

While reiterating its support for deregulation and industrialisation, Dangote emphasised that this support is grounded in a commitment to the sustainable growth of the country’s economy and the protection of its people from exploitation. The refinery made it clear that the health and safety of Nigerians should never be compromised in the pursuit of profit.

“The Dangote Petroleum Refinery and Petrochemicals Company has long been an advocate for deregulation and industrialisation in Nigeria, but our support is rooted in a commitment to the sustainable growth of the country’s economy and the protection of its people from any exploitation. Unlike Dickerman’s view, deregulation should not be a licence for the importation and distribution of off-spec products or the subversion of national interests,” it said.

The company also noted that, as an American, Dickerman should be well aware of how his own country protects its industries. It pointed to several recent examples from the United States to underline the point. For instance, U.S. President Joe Biden recently opposed the sale of U.S. Steel to Japan’s Nippon Steel, stressing the importance of maintaining strong American steel companies supported by American workers—an example of protectionism that prioritises national economic interests over short-term profit. Similarly, the U.S. has taken action to restrict the use of Chinese-made cranes in its ports, citing national security concerns. The U.S. has also imposed a 100% tariff on electric vehicles and a 50% duty on medical equipment imported from China, further demonstrating its commitment to safeguarding domestic industries. The United States has also ramped up efforts to boost its own production of computer chips and medical supplies, driven by national security concerns and the need for economic self-sufficiency. Furthermore, during his presidency, George W. Bush used anti-dumping laws to impose tariffs on a range of Chinese goods that were considered to be unfairly priced.

“It is therefore perplexing that Dickerman, with all his experience in the U.S. market, would advocate for the importation and blending of petroleum products to Nigeria under the claim of deregulation and a free market. The fact is that he had deceitfully approached us and pleaded that we extend the pipeline from our refinery to Pinnacle’s tank farms for the purpose of blending our high-quality products with their imported products and selling them to Nigerians. We categorically rejected his request to extend our pipeline to their tank farms for such devious purposes because it would be a betrayal of the Nigerian people’s trust. The health and safety of Nigerians cannot—and should not—be compromised for profit.”

The company also raised concerns over Pinnacle Oil’s decision to lease its tank farms to a company without any retail outlets in Nigeria, questioning the strategic intent behind such actions, particularly given that the farms are located just 500 metres from Dangote’s refinery. It expressed its vigilance regarding the coordinated efforts to undermine the Dangote Refinery, drawing parallels to the fate of refineries in Port Harcourt, Kaduna, and Warri.

Dangote Petroleum Refinery called on the government, patriotic Nigerians, and local businesses to remain steadfast in defending the country’s sovereignty and economic independence.

“The choice we face is between fostering industrialisation or allowing Nigeria to remain a dumping ground for inferior products while exporting jobs. For nearly three decades, cartels and their collaborators have sabotaged efforts to develop Nigeria’s refining capacity, keeping the country dependent on imported products. The time has come to end this cycle of exploitation and ensure that Nigeria’s energy sector works for the benefit of its people,” it added.

Reiterating its belief that a strong, self-sufficient energy sector is vital for Nigeria’s economic growth, Dangote affirmed that it will continue to advocate for policies and practices that protect both industries and the well-being of all Nigerians.

The company also expressed its support for healthy competition that drives innovation and quality, and looked forward to the upcoming commissioning of the four state-owned refineries, as promised by the NNPCL.

“At Dangote Petroleum Refinery, we are committed to ensuring that Nigeria becomes self-reliant in petroleum production, and we welcome competition that drives innovation and quality. However, we will never allow the continued importation and blending of petroleum products, nor the deliberate destruction of our national economy. We believe that a strong, self-sufficient energy sector is vital to Nigeria’s economic growth, and we will continue to advocate for policies and practices that protect our industries and the well-being of all Nigerians.”

“We eagerly anticipate the coming on stream of the Kaduna, Warri, and Port Harcourt refineries before the end of this year, as promised by the Group Chief Executive Officer (GCEO) of NNPCL, Mele Kyari. This milestone will not only end all baseless rumours of monopoly but also position Nigeria as a refining hub for petroleum products in Africa,” it concluded.

Tags Dangote Refinery, Pinnacle oil

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Dangote says Nigeria can become refining hub

Post author By Victor Ogunyinka
Post date October 10, 2024
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Saves Africa’s $17bn Petrol Products Imports

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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Sigh of relief as Dangote Refinery launches Euro-V Petrol

Post author By Victor Ogunyinka
Post date September 3, 2024
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Promises no more importation of polypropylene as from October

For the first time, Nigerians will gain a clear understanding of the country’s actual fuel consumption, according to Aliko Dangote, President of Dangote Group. This announcement comes as Dangote officially confirmed the rollout of Premium Motor Spirit (PMS), commonly known as petrol, from the world’s largest single-train refinery with a capacity of 650,000 barrels per day.

Reflecting on the achievement of starting PMS production 28 years after Nigeria’s four refineries ceased domestic refining, Dangote, speaking to the press at the refinery in Ibeju-Lekki, Lagos, emphasised that this development will boost the industrial and manufacturing sectors. He highlighted that the refinery will significantly reduce fuel imports, saving foreign exchange, and will contribute to stabilising the naira, lowering inflation, and reducing the cost of living.

Dangote, accompanied by Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, and Group Commercial Operations Director at DIL, Hajiya Fatima Aliko-Dangote, described this milestone as a transformative moment for Nigeria, ending years of fuel imports.

He expressed gratitude to Nigerians for their support and praised President Bola Ahmed Tinubu for fostering an environment that made the successful launch of the 650,000 barrels per day refinery possible.

He stated, “Today is a momentous occasion because Nigeria has not produced petrol, or gasoline, for many years. As I stand here, I want to extend my gratitude to the people of Nigeria and to President Bola Ahmed Tinubu’s administration for creating the environment that has enabled us to achieve this monumental task. This development will provide energy for our nation’s growth, development, and prosperity.”

He continued, “I want to personally thank Mr. President for introducing the concept of ‘Naira for Crude’ and ‘Naira for Products.’ This initiative will bring much-needed stability to the Naira by reducing the demand for dollars in the market by 40%, which will help stabilise the exchange rate.

“But that’s not all. It will also address issues like ‘round-tripping,’ where fuel is documented but doesn’t actually enter Nigeria. With this new refinery, we will have a clear view of true consumption. We’ll be able to track every loaded truck and, as much as possible, monitor loaded ships. This will allow us to precisely determine consumption patterns, though that’s a topic for another discussion.

“Today, we are here to celebrate and give thanks to God Almighty for bringing us to this point where we can produce gasoline. Many doubted we would achieve this, but we have delivered.

“We owe a debt of gratitude to the President and his government. Without their support, we wouldn’t be where we are today. I believe this refinery will transform not only Nigeria but also the entire Sub-Saharan Africa. Our capacity will not only meet Nigeria’s needs but also serve the demands of the broader region.”

Displaying a sample of the PMS to the press, Dangote remarked, “This petrol might be a bit cleaner compared to what we had before. It’s of the highest quality, ensuring that your vehicle’s engine will last longer. The quality of this fuel can match any premium standard worldwide, including those in Europe and America. No one can surpass us in terms of quality. Today is truly a celebration for us Nigerians.

“We are committed to ensuring that starting in October, there will be no need to import polypropylene. Our petrochemical plant will be fully capable of meeting all local demands,” Dangote stated.

While assuring that the refinery will guarantee the availability of petrol in Nigeria, Dangote clarified that the nation’s oil company, the Nigerian National Petroleum Corporation Limited, NNPCL, is responsible for controlling petrol pump prices.

He described this development as a significant turnaround for the country, ending years of not producing a single litre of petrol domestically. Dangote emphasised that while he can ensure a steady supply of fuel from the refinery, the NNPC will manage pricing.

“Pricing is controlled by NNPC. For now, we focus on ensuring that the products are available—that’s what I can guarantee,” Dangote said.

Tags Dangote Refinery, Euro-V petrol, Propylene

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Engineers hail Dangote Petroleum Refinery as Awesome and Mind-blowing

Post author By Victor Ogunyinka
Post date August 26, 2024
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From left: President, The Nigerian Society of Engineers, Engr. Margaret Aina Oguntala; Vice President, Oil & Gas, Dangote Industries Limited, Devakumar Edwin; President and Chairman of the Council, Council for the Regulation of Engineers in Nigeria, Engr. Prof. Sadiq Zubair Abubakar; Immediate Past President, Nigerian Academy of Engineering, Prof Peter A. Onwualu, during the League of Engineers across Nigeria visit to Dangote Petroleum Refinery and Fertiliser in Lagos, on Saturday, August 24, 2024

As company prepares for PMS rollout

Dangote commended for hiring, nurturing Nigerian Engineers

The League of engineering bodies in Nigeria have hailed the huge scale of engineering structures at the Dangote Petroleum Refinery and Petrochemicals and Dangote Fertiliser Plant at Ibeju-Lekki, Lagos State, describing the superstructure at the complex as awesome and mind-blowing; even as the company prepares for the rollout of its premium motor spirit (PMS) product, also known as petrol.

The League, comprising the National Society of Engineers (NSE), Nigerian Academy of Engineering (NAE), Association of Consulting Engineering in Nigeria (ACEN), and the Council for the Regulation of Engineering in Nigeria (COREN), toured the complex at the weekend, where they were received by the Vice President, Oil & Gas, Dangote Industries Limited, Mr. Devakumar Edwin.

The body of engineers also commended the President of Dangote Industries Limited, Aliko Dangote for hiring and nurturing highly-skilled Nigerian engineers – who were guides during the visit – and declared that engineering is alive in Nigeria, from the workforce to the construction at the Dangote Refinery complex.

During an interactive session, the 34th and first female President of the Nigerian Society of Engineers, Margaret Oguntala, described the facility as “mind-blowing”. She added that the refinery project from construction to employment, gives her hope and assurance that young Nigerian engineers are ready to take up the world.

“I was awed to see the state-of-the-art facility at the Dangote Refinery; what I see here today will blow the mind of any engineer; it is just like the movies. I was an intern at the Port Harcourt Refinery and I also visited the Kaduna Refinery, it is nothing compared to what I see here. The young engineer that took us around showed capacity and we are happy that you are building the future of engineers. We at the NSE are behind you, we shall take this home and let the world know that engineering is alive at the Dangote Refinery,” she added.

Speaking on behalf of the Nigerian Academy of Engineering, Prof. Azikwe Peter Onwualu also noted that the visitors have seen “something good and Nigerians need to know about it.” Prof. Onwualu added “We are happy some of our fellows are part of your system. We would like to remind the President of the Dangote Group, Mr. Aliko Dangote, that if you are not doing something great you will not be criticised. Whatever you are doing, keep it up. If we have this kind of development across Nigeria, people won’t be talking about protests. Keep doing what you are doing and you will hear from us.”

Also, President of Council for the Regulation of Engineering in Nigeria, COREN, Prof. Sadiq Abubakar, enthused that Nigerian engineers are not inferior to their counterparts globally and the Dangote Refinery is visible proof of this. “We have known this as a fact that Nigerians are no less in engineering globally. We know our capabilities and this attests to it. What we saw today is emotional and I wonder what the motivation for this colossal investment is. We would like to encourage him for keeping the spirit of a true Nigerian.”

Reacting to questions, the Group Vice President, Oil and Gas, Mr. Edwin, demystified talks around the monopoly tag, stating that someone has to start a project before others follow. “Nigeria was one of the largest importers of cement, then we started manufacturing cement and then we became exporters, same thing applies to sugar, salt and now fertiliser. This breakthrough opened the doors for other investors in those industries and Nigeria is better for it.

“What motivates Mr. Dangote is his sheer interest in the Nigerian project. It is true, we are in business to make money but the question is where is the money going to? Every money Dangote is making goes back to the Nigeria economy, from cement to salt, sugar, fertiliser.”

“The business strategy of the Dangote Refinery is to minimise the energy cost and the overall cost of production; build the most environmentally friendly; maximise value addition; maximise gasoline which is in high demand with about 55 per cent of the production capacity compared to 22 per cent of the existing refineries in Nigeria; strategically located marine infrastructure for crude receipt and product evacuation; state-of-the-art technology; produce Euro V products; provide crude flexibility and create market of $21 billion per annum of Nigerian crude,” Mr. Edwin added.

While speaking to journalists, the Technical Consultant to Dangote Refinery, Engr. Babajide Soyode, said the visit of his professional colleagues, made him “very proud”. He added that “I knew the project was a hard one, but Aliko Dangote is harder. He follows up on his passion. His corporate vision is to meet the need of the people. It is the greatest honour of my life to be part of this project.”

The Dangote Refinery is poised to begin production of petrol, according to Mr. Edwin; a process which is expected to complement the current products at the refinery, stimulate local supply of the vital product to Nigerians, and save huge foreign exchange revenue for the country.

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NBA says domestic refining will address fuel scarcity, queues

Post author By Victor Ogunyinka
Post date August 22, 2024
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Urges President Tinubu to implement directive on crude supply to Dangote refinery, others

The Nigerian Bar Association has called for the full implementation of the directive of President Bola Ahmed Tinubu on the supply of crude to Dangote refinery and modular refineries in the country.

Describing the establishment of the refinery as both nationalistic and patriotic endeavour, the umbrella professional association of lawyers, urged the Federal Government and Nigerians to support the Dangote Petroleum Refinery to end the reign of fuel scarcity and perennial queues at filling stations in the country.

It expressed disappointment that the major project is encountering strong resistance from fuel importers, who have stifled the economy and kept it reliant on imported refined petroleum products, despite Nigeria’s status as a leading crude oil producer.

The President of NBA, Yakubu Maikyau, who led other leaders and members of the association on a visit to the facility, praised the President/Chief Executive of the Dangote Group, Aliko Dangote, for remaining steadfast despite the opposition faced.

“What I have seen today gladdens my heart, but at the same time, my heart is bleeding because of the neglect and opposition that such a laudable effort is facing. It is shameful, but as I mentioned to the President of the group, his continued steadfastness and resilience despite the opposition show that there is hope for this country. I would describe Aliko Dangote as both a freedom fighter and an economic warrior. There is no one more honourable or patriotic than Dangote. He has proven this through his actions, not just words. This isn’t about what someone might tell you; we have witnessed the enormous investments he has made in this country,” he said.

He urged the Federal Government to create a supportive environment for the refinery, aiming to transform Nigeria into a net exporter of refined petroleum products and to alleviate the severe hardships caused by fuel scarcity. He lamented that it is shameful for the refinery to import crude from abroad and export refined products due to opposition from local players

“I want to use this opportunity to call on the Federal Government to pay deliberate and conscious attention to what Dangote is doing. Anyone serious about turning around the fortunes of this country cannot ignore Dangote’s efforts. This is a people-centered investment that must be supported. This is the type of investment we need, and wherever such investments exist in this country, we urge the government to create an enabling environment for the benefit of the people. If we establish a supportive environment for this refinery to operate, we will eliminate the queues on our streets and resolve the difficulties associated with the scarcity of petroleum products. However, we will need the government to demonstrate a willingness to support this crucial venture. We have a facility here that can compete with the best in the world, but unfortunately, it is not receiving the support and recognition it deserves. It is disgraceful that with a refinery of this capacity, where 86 tankers can be loaded at once, we still face fuel shortages,” he added.

Vice Chairman of the Epe Branch of the NBA, Ivo Takor, who praised the location of the refinery in the Ibeju-Lekki-Epe axis, said that the project has the potential to resolve the long-standing issue of fuel importation, create jobs, boost foreign exchange, and save the country money currently spent on subsidising petroleum products.

“The refinery is something every Nigerian should be proud of. It is a project that will move Nigeria away from its long-standing issue of fuel importation, which comes with its own set of problems. Currently, we are dealing with fuel scarcity and long queues. I believe that once this refinery is fully operational, these challenges will be resolved. Additionally, the refinery has the capacity to export some of its products, bringing foreign exchange into the economy. It will also reduce the government’s expenditure on subsidies, allowing funds to be redirected towards improving infrastructure, education, and the health sector. Since its construction, many jobs have been created, and further job creation will follow when it becomes fully operational,” he said.

He, however, noted that despite these benefits, there are some entrenched cartels against the full operation of the refinery. While praising President Bola Tinubu for directing the supply of crude to both the refinery and modular refineries across the country, he emphasised the need for stringent monitoring to ensure compliance. He stressed that withholding crude from the refinery constitutes sabotage against the nation and should be met with appropriate sanctions.

“Unfortunately, it appears that there is a well-established cartel working against the full operation of this refinery, specifically those who do not want to supply it with crude oil. It is illogical for Nigeria to export crude oil while the refinery also imports crude . This situation reflects the interests of entrenched forces who benefit from fuel importation, which negatively impacts the people and the economy. Fortunately, the president has issued a directive regarding the supply of crude to the refinery. However, beyond this directive, it is crucial to ensure compliance. Those who do not comply should face adequate sanctions, as failure to do so constitutes sabotage not only against the refinery but against the economy as well,” he said.

The Vice President (Oil & Gas) at Dangote Industries Limited, Devakumar Edwin, informed the delegates, that the refinery was established primarily to source and refine local crudes for the benefit of Nigeria, while also exporting excess production to boost the economy.

Edwin noted that the lack of sufficient Nigerian crude supplies has necessitated importing crude from other countries and continents while exporting refined petroleum products abroad.

Tags local refinery, NBA, scarcity

PRESS RELEASE

Dangote clarifies its stand on crude supply to its Refinery

Post author By Victor Ogunyinka
Post date August 9, 2024
No Comments on Dangote clarifies its stand on crude supply to its Refinery

Our attention has been drawn to media reports alleging that the Dangote Refinery has backtracked by acknowledging that NNPC supplied about 60% of the 50 million barrels we lifted.

To clarify, we have never accused NNPC of not supplying us with crude. Our concern has always been NUPRC’s reluctance to enforce the domestic crude supply obligation and ensure that we receive our full crude requirement from NNPC and the IOCs.

For September, our requirement is 15 cargoes, of which NNPC allocated six. Despite appealing to NUPRC, we’ve been unable to secure the remaining cargoes. When we approached IOCs producing in Nigeria, they redirected us to their international trading arms or responded that their cargoes were committed.

Consequently, we often purchase the same Nigerian crude from international traders at an additional $3-$4 premium per barrel which translates to $3-$4 million per cargo

We therefore still insist that we are unable to secure our full crude requirement from domestic production and urge NUPRC to fully enforce the domestic crude supply obligation as mandated by the PIA.

Signed,

Anthony Chiejina

Group Chief, Branding and Communications Officer

Tags crude oil supply, Dangote Refinery

PRESS RELEASE

Dangote Refinery: Civil societies to monitor crude sales compliance by NNPCL

Post author By Victor Ogunyinka
Post date August 5, 2024
No Comments on Dangote Refinery: Civil societies to monitor crude sales compliance by NNPCL

…To set up situation room in Abuja

A coalition of Civil Society Organisations (CSO) at the weekend said it would set up a situation room to monitor the compliance of the Nigeria National Petroleum Corporation Limited (NNPCL) to the presidential directive to sell crude oil to Dangote Refinery in Naira currency.

Leaders of the 28 CSOs who were on facility tour of the 650,000 bpd world’s largest single train refinery in Lagos said the disposition of the NNPCL and the regulatory agencies was a clear indication the they deliberately held down the nation’s refineries so that they could continue importing petroleum products.

Recall that President Bola Tinubu had in the web of controversies that trailed the face-off between Dangote Refinery and the NNPCL intervened and directed the Corporation to henceforth sell crude to Dangote Refinery in Naira

Speaking on behalf of others, Solomon Adodo of the Rise Up for A United Nigeria said what his group had seen was a world class facility and wondered how a regulatory agency of the government could take sides with importers of petroleum products when a local refinery is now available to bail the nation out of the forex quagmire which has made the price petroleum products to skyrocket.

He disclosed that the CSOs have concluded to petition the Presidency on the need to adopt Dangote Refinery as a national asset that should be used to liberate the country from the shackles of importation of fuel while it exports crude.

Said he: having gone round to see this world class project, we are at a loss as to why the government could decide to turn against Nigerians in this manner. But we are not too surprised give our past experiences. Those who are profiting from our collective misfortune will not want the Dangote refinery to work.

“We are ready to defend this facility with everything as civil society organizations. We are not speaking on our behalf but on behalf of all Nigerians and on behalf of our fatherland. It leaves much to be desired how an agency of government with oversight function to guide to grow such a project as this would now be disparaging same project. This is too bad.

“We have seen for ourselves and we have cleared all doubt as to the completion of this refinery and the readiness to supply all our domestic needs. We will exposed them all. Anyone who is not ready to ensure Nigeriand have a new lease of life must give way. Now it is fight to finish.

“Going forward, we are going to set up a situation room to monitor the compliance of the NNPCL with the directive of Mr. President that Dangote Refinery would be supplied with Crude in Naira because we know that the enemies of the people would wnt to adopt another strategy to sabotage the presidential directive.

“It is a criminal audacity for an agency of government to brazenly disparage a national asset like Dangote Refinery, more so when government has four refineries and all of them are moribund, how then would you treat a orivate investors who has committed everything to build a functional refinery much more bigger than all the four own by government put together.

“Nigerians are not stupid; we all know what is interplaying here. They told us that after removing fuel subsidy, market forces would force the price down , what a fallacy of market forces, here we are, the forces have only succeeded in pushing the price up. Now we have a local refinery that will bail us out yet they don’t want it to operate. So that Nigerians would benefit from it.”
Adodo said that the CSOs would mount serious advocacy to make government accede to demands of Nigerians which is not just granting the sale of crude to Dangote Refinery in Naira but also ensuring Dangote fuel are available at petrol stations for Nigerians to buy.

The group appealed to the management of Dangote Refinery not to be discouraged but to trudge on as the group would mount serious campaign in favour of the refinery. “Even if it means we should protest, we will. We cant allow this international embarrassment to stand.”

He argued that all the claims about monopoly against Dangote Refinery was just to call a dog a bad name in other to hang it. What Dangote Refinety will stand foe is not monopoly but peoplepoly. We will write the American Societ of Engineers over this and the European Union. We will maintain eternal vigilance.

Speaking while welcoming the group, Vice-President, Dangote Industries Limited, Devakumar Edwin, described Dangote Refiney as a value adding facility as it will stop the exportation of Nigeria’s crude and importation of finished products and wonder why government would be against such a vision for Nigeria.
According to him, many African countries have minerals but they are not adding value to their economies because, those minerals are exported raw and the finished products are imported back into the country whereas vice versa should have been the order of the day.

“This is what Dangote refinery seeks to correct, we did same in Cement and Sugar sectors where Nigeria was a a leading importer of those products and with the coming of Dangote leading the backward integration programme of the government, others cam into the sector and together Nigeria now exports cement to other countries.

“What we want to do in Refinery, we have done it other businesses, Nigeria used to be the biggest importer of Sugar, we came in and change the narrative. We led the backward integration scheme of the federal government, and we now produce sugar locally for domestic consumption and others have joined us. We did same in Cement by opening up production plant and today Nigeria exports cement to other countries.

“In a business no one was interested in investing into, Dangote delved into it determined to ensure Nigeria no longer imports fuel, invested massively and come up with the world’s largest single train refinery. He said he would not take his money to Dubai or Swiss banks as others are doing, he decided to invest at home and now they are saying he wants to create monopoly.

“We didn’t ask for any favour other than that we want to buy crude to produce, first they said there was no crude, later they said we would have to pay some dollars above the prevailing crude market price. And this is a global market where you can track crude prices anytime. We resorted to buying crude from Brazil and United States. Later they said we should not be announcing the price of the products.

“Even the US that is the leading proponent of of free market economy protects its local industries by imposing huge duty on from foreign imports just to protect local industries. This is a man that Saudi Aramco once approached to come and cite hie refinery in Saudi Arabia, promising steady supply of cruse. Abu Dahbi also invited him to do same on their soil but he rejected insiting he would build at home, now he did that and a facility that is supposed to add value to Nigeria’s economy is being frustrated.”

The Dangote Vice-President said the Company would continue to focus on its business strategy which is to add value to Nigeria economy through investments and job creation for the teeming Nigerian masses. According to him, Nigeria can only consume 45% of the capacity of the refinery while the remaining 55% will be exported and bring into the country foreign exchange needed badly.

Tags CSO, Dangote Refinery, NNPCL

PRESS RELEASE

HOSTCOM backs Dangote, modular refineries to end importation of petrol, diesel, others

Post author By Victor Ogunyinka
Post date July 29, 2024
No Comments on HOSTCOM backs Dangote, modular refineries to end importation of petrol, diesel, others

The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) has urged the Federal Government to back the Dangote Petroleum Refinery & Petrochemicals and other domestic refineries to end the reliance on imported petrol, diesel, and other refined products.

The group pointed out the long-standing issues with government-owned refineries, which have been inactive for over two decades. Despite being a leading crude oil producer in Africa, Nigeria continues to depend on imports for its refined product needs.

During a visit to the Dangote Petroleum Refinery in Ibeju Lekki, which has a capacity of 650,000 barrels per day, HOSTCOM’s leadership emphasised the need for Nigeria to refine its crude locally.

The National President of HOSTCOM, Dr. Benjamin Tamaramiebi, accompanied by his executives and traditional rulers from the Niger Delta, toured both the refinery and the Dangote Fertiliser Limited complex. Notable traditional rulers included the Chairman of the Niger Delta Monarchs Forum, HRM Frank Okorakpo; Deputy Chairman of the Traditional Rulers of Oil Mineral Producing Communities of Nigeria (TROMPCON), HRM Obafemi Ogaro; and Egbesuwei Gbanraun X Agadagba Pere, HRM (Capt) Frank Okiakpe, among others.

In a statement following the tour, HOSTCOM’s President called for nationwide support for the Dangote Petroleum Refinery to eliminate the need for imported refined products.
The group expressed gratitude to the National Assembly and Nigerians but warned against any acts of sabotage that could hinder the country’s progress towards self-sufficiency in refined products.

“We are grateful to the 10th National Assembly, good-spirited individuals and associations who have been rallying support for Aliko Dangote. We HOSTCOM have come today to drum up supports for Dangote Refinery. We will stand with Dangote to put an end to continuous importation of less quality and costly refined Petroleum Products into Nigeria,” stated the group.

The group, comprising all states producing oil and gas in Nigeria, lamented that despite the billions of dollars spent on turnaround maintenance of Nigeria’s refineries, the country remains reliant on importing refined products. This persistent issue, it argues, highlights the widespread corruption within Nigeria’s oil and gas industry, allegedly orchestrated by influential cabals who are intent on maintaining the status quo of exporting crude oil while importing refined petroleum products. HOSTCOM warned that it will not hesitate to publicly name these identified cabals if necessary.

“Our visit today to the largest and magnificent 650,000 bpd private Refinery in Africa (DANGOTE REFINERY) has opened our eyes to several ills, particularly to the monumental corruption going on in the Nigeria Oil and gas Industry. It is obvious the reason why the existing Federal Government Refinery in Port Harcourt, Warri and Kaduna can never work or operate maximally despite the billions of dollars that have been spent on the so-called Turn Around Maintenance over the years. It is now clear that some persons in government and outside government have been identified as the Cabal holding the Nigeria oil in the Jugular, we have identified them, and we shall make their names known to the people of Nigeria,” it said.

HOSTCOM, which emphasised that every Nigerian’s aspiration is for the country to refine its own crude oil for the benefit of its people, warned that any individual who opposes this national desire will face the wrath of the masses.

The group also lampooned the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, over his recent statement that the government would not halt the importation of refined petroleum products. HOSTCOM called on President Bola Ahmed Tinubu to remove Ahmed from his position, arguing that his previous associations with key players in the sector make him unfit to effectively regulate the downstream industry.

“We therefore unequivocally call for the immediate sack of Farouk Ahmed. It is now clear that he as the CEO of NMDPRA is responsible for issuing import licenses to his cronies outside the government to continue to import Sub-standards Refined Petroleum Products into the Country. In hindsight, this is not surprising given that he has served on the boards of some downstream companies in the past. He is therefore obviously conflicted and incapable of performing the duties of a regulator for the downstream sector. It is important to immediately replace him with an individual who is not encumbered by such conflict,” the group added.

The group praised the President of Dangote Industries Limited, Aliko Dangote for his patriotism in investing in and constructing the refinery in Nigeria, noting that his endeavour has significantly contributed to the country’s economic growth and development. It emphasised that the refinery is crucial in providing local solutions to Nigeria’s refining needs, thereby reducing the nation’s dependency on imported refined petroleum products.

The group urged President Tinubu to support the project, highlighting that it will enhance the economy, create thousands of jobs, ensure the sustainability and affordability of products, and bring substantial benefits to the host communities, among other positive effects.

“We called on President Bola Tinubu to support and sustain this refinery which is in his own state. He must do a way with the cabals holding the oil sector to ransom,” it added.

The group further asserted that the President must not tolerate the economic sabotage being carried out by the International Oil Companies (IOCs) operating in Nigeria, which have refused to sell crude oil to the Dangote Refinery and other modular refineries. They condemned this as an affront to the Nigerian people and a deliberate attempt to undermine the President’s renewed hope agenda, which aims to revive the economy.

“We call on Mr President to direct NNPC OR NNPCL to compel the IOCs operating in our communities to sell and supply Crude Oil to Dangote Refinery and other Local Refineries in line with section 109 of the Petroleum Industry Act PIA 2021 particularly section 109(4)(b) “the supply of crude oil shall be commercially negotiated between the lessee and the crude oil refining licensee, having regard to the prevailing international market price for similar grades of crude oil,” it added.

It also pointed out that, despite the PIA, the IOCs continue to lack transparency and accountability, alleging ongoing exploitation of oil-producing communities. The group warned that if the IOCs fail to supply crude oil to domestic refineries, host communities will be forced to take decisive action.

“In conclusion, If the NNPC and the IOC fail to abide by the domestic crude oil supply obligation to sell and supply crude Oil to modular refineries and Dangote Refinery, we HOSTCOM will begin agitation for greater Autonomy and control of our resources,” it added.

The VP of Gas and Oil at Dangote Industries Limited, Devakumar Edwin, who hosted the delegates, explained that the refinery was established primarily to source and refine local crudes for the benefit of Nigeria, while also exporting excess production to boost the economy. He noted that the lack of sufficient Nigerian crude supplies has necessitated importing crude from other countries and continents. He said that if the refinery had not been designed to process a wide range of crudes, including various African and Middle Eastern crudes as well as US Light Tight Oil, it would have become inactive due to the lack of Nigerian crude supplies.

Edwin said that products from the refinery are of superior quality and meet international standards, conforming to Euro V specifications. This high standard has enabled the refinery to export jet fuel to Europe and the United States.

Edwin added that the refinery is committed to environmental protection as it is designed to comply with US EPA regulations, European emission standards, Department of Petroleum Resources (DPR) emission norms, and African Refiners and Distributors Association (ARDA) standards.

He also noted that the refinery, dedicated to enhancing local contents, has made substantial contributions to its host communities, and significantly boosted employment opportunities within the country.

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