Author: Victor Ogunyinka

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Shareholders condemn demarketing of Dangote Refinery

Post author By Victor Ogunyinka
Post date July 25, 2024
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Shareholders have strongly defended Africa’s foremost industrialist, Aliko Dangote, while criticising the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, for deliberate attempt at demarketing Dangote Petroleum Refinery & Petrochemicals.

The Pragmatic Shareholders Association of Nigeria (PSAN) in a statement by its National Coordinator, Mrs. Bisi Bakare, expressed dismay over recent allegations from the petroleum regulatory agency regarding the quality of diesel produced by Dangote Petroleum Refinery. NMDPRA boss Ahmed has faced backlash for suggesting that the diesel produced by the $20 billion Dangote refinery is of inferior quality compared to imports into the country.

Bakare commended Dangote for his visionary approach in establishing one of the world’s foremost refineries in Nigeria. She highlighted Dangote’s commitment to national development, stressing his patriotism and resolute character through substantial investments like the refinery.

“Dangote has ensured that the bulk of his business investments are local, contributing significantly to economic development through tax payments, extensive job creation, and consistent returns for shareholders,” she added.

The shareholders group strongly condemned what they termed as “unwarranted efforts to demarket the refinery” by regulatory bodies. They cautioned that such actions could deter both local and international investors and undermine government efforts to stabilise fuel prices and ensure availability.

“We must rally around Dangote Refinery,” Mrs. Bakare urged, “to provide crucial support such as crude oil allocation, cooperation from international oil companies, and regulatory agency collaboration.” She stressed the refinery’s potential to save Nigeria over 30% in foreign exchange currently spent on offshore refining, which could significantly alleviate the country’s foreign exchange challenges.

“As shareholders,” Mrs. Bakare affirmed, “we remain steadfast in our support of Alhaji Aliko Dangote’s vision to bolster the nation’s economy and create more opportunities for our citizens.”

PSAN has joined the list of Nigerians rallying support for Dangote in the ongoing standoff.

Prominent figures and associations such as the President of the African Development Bank Group (AfDB), Akinwumi Adesina; billionaire businessman, Femi Otedola; federal lawmakers; former Vice President and 2023 presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar; former Anambra state governor and 2023 Labour Party presidential candidate, Peter Obi; Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA); and the Manufacturers Association of Nigeria have all voiced their support for Dangote Refinery.

PRESS RELEASE

Dangote: Our Refinery is having repeated orders from abroad

Post author By Victor Ogunyinka
Post date July 21, 2024
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…Urges National Assembly to test all available products from Standard laboratory to disclaim NMDPRA’s assertions

President of Dangote Group, Aliko Dangote, over the weekend revealed that Dangote Petroleum Refinery has continued to receive repeated orders for its products from all those who have purchased same since the commencement of production. The refinery has so far exported its products to some European countries, Singapore and offshore Lome.

Speaking during a tour of both Dangote Petroleum Refinery & Petrochemicals and the Dangote Fertiliser Limited complex by members of the House of Representatives, Dangote wondered why a regulatory authority like the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) that should protect local industries is castigating the latter and even lying in media reports to justify the need to continue importation of dirty fuel into the country.

According to him: “I urge you to even set up a committee that will take samples at filling stations and take our own sample, because I must tell you that all the test certificates people are flaunting around are fake certificates. Where are the laboratories where those tests were conducted? By doing this, you will be able to tell Nigerians the very truth that they deserve to know. Demarketing of a company by a regulator that it is supposed to protect it, is very unfortunate.

“We didn’t know that you were going to ask us to stop by the road and take samples from other filling stations. I didn’t know what you wanted to do until we got here and you requested for a test. It is even good that it is your members that went directly to get our samples and I am sure you were shocked by the result. With the result, you can see that we produce the best diesel in Nigeria.”

Dangote openly challenged the regulator (NMDPRA) to compare the quality of refined products from his petroleum refinery with those imported, while advocating for an impartial assessment to determine what best serves the interests of Nigerians. “We produce the best diesel in Nigeria. It is disheartening that instead of safeguarding the market, the regulator is undermining it. Our doors are open for the regulator to conduct tests on our products anytime; transparency is paramount to us. It would be beneficial for the regulator to showcase its laboratory to the world so Nigerians can compare. Our interest is Nigeria first because if Nigeria doesn’t grow, we have limited capacity for growth.

“Right Honourable Speaker and esteemed members, you have witnessed the results of the credibility test. I appreciate your wise counsel in procuring samples from the filling stations alongside our refinery’s product. Ours shows a sulphur content of 87.6 ppm, approximately 88, whereas the others exceeded 1,800 ppm. Although the NMDPRA permits local refiners to produce diesel with sulphur content up to 650 ppm until January 2025, as approved by ECOWAS, ours is significantly lower. Next week, we aim to achieve 10 ppm, aligning with the Euro V standard. Imported diesel is capped at 50 ppm, but as you have seen, those from the stations, imported by major marketers, fall well outside this standard,” Dangote observed.

He pointed out that high-sulphur content diesel regularly imported into the country often comes with dubious certifications. He emphasised that the most effective method to verify the quality is to purchase the product directly from filling stations and conduct credibility tests. According to him, this issue has resulted in both health risks and financial losses for Nigerians.

“Dubious certifications often accompany the importation of high-sulphur diesel into Nigeria, causing both health risks and financial losses for Nigerians,” noted Dangote. “The best method to verify this is to purchase the product directly from filling stations where end-users obtain it. I believe Farouk Ahmed (Chief Executive of NMDPRA) speaks without sufficient knowledge of our refinery. We have successfully exported diesel and jet fuel to Europe and Asia without any complaints; in fact, we have received repeated orders, indicating satisfaction with our products.”

Supporting Dangote’s assertion, Vice President of Gas and Oil at Dangote Industries Limited, Devakumar Edwin, highlighted recent actions by European countries like Belgium and the Netherlands. “These countries have expressed concerns about the carcinogenic effects of high-sulphur diesel being dumped into the Nigerian market, prompting them to impose bans on such fuel exports to West Africa”, he said.

Edwin informed the visiting federal lawmakers that the Dangote Petroleum Refinery, designed to process a wide range of crudes including various African and Middle Eastern crudes, as well as US Light Tight Oil, conforms to Euro V specifications. In addition, he said, it is designed to comply with US EPA (United States Environmental Protection Agency), European emission norms, Department of Petroleum Resources (DPR) emission/effluent norms, and the African Refiners and Distribution Association (ARDA) standards.

Noting that products from the $20 billion facility are of high quality which meet international standards, Edwin said it has the capacity to meet 100% of Nigeria’s demand for petrol, diesel, kerosene, and aviation Jet, with surpluses available for export.

The Group’s Vice President, Olakunle Alake, expressed disappointment over accusations of monopoly against the Dangote Group. He stressed that there are multiple players in the industry, including the Nigerian National Petroleum Corporation (NNPC), which operates four refineries.

Expressing concern over the controversy surrounding the quality of imported refined products into Nigeria, the Reps Speaker, Rt. Hon. Abass stated that the Green Chamber would establish a committee to investigate the matter thoroughly. He emphasised that sampled products from various sources would undergo testing as part of this initiative.

The Speaker also expressed admiration for the infrastructure at the Dangote Oil Refinery, describing it as a significant asset in Nigeria’s quest for self-sufficiency in petroleum products. He noted that the refinery has positioned itself as a pivotal player, especially at a time when global concerns over energy security and sustainability are paramount.

“Today’s visit to the magnificent facilities of Dangote Industries Oil Refinery section has been nothing short of enlightening. It has afforded us a rare opportunity to witness first-hand the monumental strides that your organisation has made in transforming the landscape of petroleum production in Nigeria. The sheer scale and sophistication of this facility are awe-inspiring; it stands as a beacon of hope for our country as we navigate through the turbulent waters of energy supply challenges,” he said.

Commending the state-of-the-art technology implemented at the petroleum refinery, Abbas praised it as revolutionary and a shining example of engineering and innovation excellence.

“Each corner of this facility resonates with the echoes of hard work, dedication, and an unyielding pursuit of quality. It is evident that every drop produced here carries not just oil but also the hopes and dreams of millions who yearn for a brighter future. We are deeply impressed by what we have seen during this visit which confirms the rating of this industry as the single largest oil refinery in Africa. This remarkable achievement does not merely reflect corporate success; it symbolises national pride, a tribute to what can be accompanied when visionary leadership meets relentless determination,” he said.

Acknowledging the numerous challenges likely encountered during the construction of the refinery, the Speaker lauded Dangote for his steadfast commitment to achieving excellence.

“I would like to take this opportunity to acknowledge the myriad challenges that have beset this remarkable facility. The regulatory hurdles that often loom like dark clouds over progress, the complexities surrounding crude oil supplies that can stifle even the most ambitious endeavours, and the daunting economic landscape we navigate especially in these times when our economy grapples with foreign exchange constraints, are all formidable adversaries. Yet, despite these tribulations, your unwavering commitment to excellence shines through,” he attested.

Tags Dangote Refinery, NNPC

News

Dangote commends NUPRC for publishing Domestic Crude Supply Obligation Guidelines

Post author By Victor Ogunyinka
Post date July 17, 2024
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Oil cabals crippled govt refineries, now working against Dangote Refinery ― Pastor Adeboye

Says local price will continue to increase because Trading arms offer cargoes at $2-$4 per barrel, above NUPRC official price

Insists IOCs are frustrating its crude supply demands

The Management of Dangote Industries Limited (DIL) have commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its various interventions in the oil company’s crude supply requests from International Oil Companies (IOCs), and for publishing the Domestic Crude Supply Obligation (DCSO) guidelines to enshrine transparency in the oil industry.

Vice President, Oil & Gas, Dangote Industries Limited, Mr. DVG Edwin however said: “If the Domestic Crude Supply Obligation (DCSO) guidelines are diligently implemented, this will ensure that we deal directly with the companies producing the crude oil in Nigeria as stipulated by the PIA.”

Edwin insisted that IOCs operating in Nigeria have consistently frustrated the company’s requests for locally produced crude as feedstock for its refining process.

He highlighted that when cargoes are offered to the oil company by the trading arms, it is sometimes at $2-$4 (per barrel) premium above the official price set by NUPRC. “As an example, we paid $96.23 per barrel for a cargo of Bonga crude grade in April (excluding transport). The price consisted of $90.15 dated brent price + $5.08 NNPC premium (NSP) + $1 trader premium. In the same month we were able to buy WTI at a dated brent price of $90.15 + $0.93 trader premium including transport. When NNPC subsequently lowered its premium based on market feedback that it was too high, some traders then started asking us for a premium of up to $4m over and above the NSP for a cargo of Bonny Light”

“Data on platforms like Platts and Argus shows that the price offered to us is way higher than the market prices tracked by these platforms. We recently had to escalate this to NUPRC”, Edwin said, and urged the regulatory commission to take a second look at the issue of pricing.

Edwin’s response came against the background of a statement by the Chief Executive Officer of NUPRC, Engr. Gbenga Komolafe, who in an interview on ARISE News TV said that “it is ‘erroneous’ for one to say that the International Oil Companies (IOCs) are refusing to make crude oil available to domestic refiners, as the Petroleum Industry Act (PIA) has a stipulation that calls for a willing buyer-willing seller relationship.”

Edwin noted that, “The NUPRC has been very supportive to the Dangote Refinery as they have intervened several times to help us secure crude supply. However, the NUPRC Chief Executive was probably misquoted by some people hence his statement that IOCs did not refuse to sell to us. To set the records straight, we would like to recap the facts below.

“Aside from Nigerian National Petroleum Corporation Limited (NNPCL), to date we have only purchased crude directly from only one other local producer (Sapetro). All other producers refer us to their international trading arms.

“These international trading arms are non-value adding middlemen who sit abroad and earn margin from crude being produced and consumed in Nigeria. They are not bound by Nigerian laws and do not pay tax in Nigeria on the unjustifiable margin they earn.

“The trading arm of one of the IOCs refused to sell to us directly and asked us to find a middleman who will buy from them and then sell to us at a margin. We dialogued with them for 9 months and in the end, we had to escalate to NUPRC who helped resolve the situation,” Edwin stated.

According to him, “When we entered the market to purchase our crude requirement for August, the international trading arms told us that they had entered their Nigerian cargoes into a Pertamina (the Indonesia National Oil Company) tender, and we had to wait for the tender to conclude to see what is still available.

“This is not the first time. In many cases, particular crude grades we wish to buy are sold to Indian or other Asian refiners even before the cargoes are formally allocated in the curtailment meeting chaired by NUPRC.

“However, we would like to urge NUPRC to take a second look at the issue of pricing. NUPRC has severally asserted that transactions should be on willing seller / willing buyer basis. The challenge however is that market liquidity (many sellers / many buyers in the market at the same time) is a precondition for this. Where a refinery needs a particular crude grade loading at a particular time then there is typically only one participant on either side of the market.

“It is to avoid the problem of price gouging in an illiquid market that the domestic gas supply obligation specifies volume obligation per producer and a formula for transparently determining pricing. The fact that the domestic crude supply obligation as defined in the PIA has gaps is no reason for wisdom not to prevail”, Edwin stated.

Tags Dangote, Nigerian Upstream Petroleum Regulatory Commission (NUPRC)

News

Dangote Refinery capable of solving Nigeria’s forex problems, catalysing economic devt ― S&P Global

Post author By Victor Ogunyinka
Post date July 8, 2024
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As Dangote reassures on the commencement of petrol production this July

International financial analytics corporation, S&P Global, has described the 650,000 barrels per day (bpd) Dangote Oil Refinery and Petrochemicals company as capable of resolving Nigeria’s foreign exchange (forex) issue and its huge pressure on the local Naira currency, while also catalysing the country’s economic development.

S&P Global, headquartered in Manhattan, New York City, disclosed this during an onsite visit to the Dangote Refinery at Ibeju-Lekki, Lagos as part of its sovereign credit ratings assessment of Nigeria. The team from the international rating agency were accompanied by officials from the Federal Ministry of Finance.

S&P noted that the largest single-train refinery complex in the world would bolster Nigeria’s oil sector and, more importantly, also have a positive impact on its growing economy.

Director and Lead Analyst, Sovereign and International Public Finance Ratings, S&P Global Ratings, Ravi Bhatia, who led the delegation to Lagos, said Dangote refinery would transform Nigeria into a net exporter of petroleum products. He added that this transformation is expected to boost revenue generation and alleviate the current pressure on the country’s foreign exchange reserves.

Members of S&P Global Rating delegation at one of the laboratories during S&P Global Ratings’ site visit to the Dangote Refinery as part of its sovereign credit ratings assessment of Nigeria at the weekend.

“It is a very impressive facility, able to process 650,000 barrels a day, when in full capacity. It is the largest single-train refinery complex in the world. It came out quite quickly. Nigeria is a big exporter of crude but has issues with importing refined fuels. So, there is a gap in the market where crude can be refined in Nigeria, save money that way, and potentially save some foreign exchange. This will be positive for the economy in the medium term. It looks positive from our assessment,” Bhatia said after an over four-hour tour of the facility.

Also, in a chat with the media, Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, who led the team during the tour of the facility, reiterated that by harnessing Africa’s abundant crude oil resources to produce refined products locally, the company aims to catalyse a virtuous cycle of industrial development, job creation, and economic prosperity. He also revealed that, as earlier promised, the company will start the production of premium motor spirit (PMS), this month (July).

Noting that products from the $20 billion facility are of high quality and meet international standards, Edwin said it can meet 100 per cent of Nigeria’s demand for petrol, diesel, kerosene, and aviation Jet, with surpluses available for export.

The S&P team commended the President of Dangote Industries Limited, Aliko Dangote, for integrating advanced technologies and quality control measures, including a state-of-the-art Central Control Unit ensuring smooth automation of operations.

Other members of the team of the international rating agency include the Associate Director, Sovereign Ratings, Maxmillian McGraw; Director, Corporate Ratings, Omegu Collocott; Senior Analyst, Bank Ratings, Charlotte Masvongo, and Director, Financial Services, Samira Mensah.

Currently operating at 350,000 barrels per day capacity, Edwin said the refinery is slated to scale up to at least 500,000 barrels per day capacity by July/August, commencing the refining of petrol and ultra-low sulphur diesel.

He noted that the refinery, designed to process a wide range of crudes including various African and Middle Eastern crudes, as well as US Light Oil, conforms to Euro V specifications. In addition, it is designed to comply with US EPA, European Union (EU) emission norms, the Department of Petroleum Resources (DPR) emission/effluent norms, and the African Refiners and Distribution Association (ARDA) standards.

While noting that most refineries were built by foreign companies, he said it is a thing of pride that a Nigerian company designed and built the world’s largest single-train refinery complex while acting directly as its own Engineering, Procurement, and Construction (EPC) contractor. The refinery also incorporates a self-sufficient marine facility capable of handling the world’s largest vessels.

“The refinery can produce the best quality products in the world, Euro V grade. It is one of the energy-efficient refineries and it is highly environmentally friendly. It is sophisticated with a high level of automation. The largest single train refinery in the world is 100 per cent designed, engineered, and constructed by a Nigerian company as EPC contractor,” he said.

Nigeria, one of the world’s leading oil-producing countries, exports all its crude oil for refining and subsequently imports refined products due to a lack of operational refineries. It is estimated that Nigeria imports at least 50 million litres of petrol per day to meet domestic demand.

According to data from the National Bureau of Statistics (NBS) in its Foreign Trade Statistics for the Fourth Quarter of 2023, Nigeria spent approximately N12 trillion on the importation of petroleum products in 2023, including premium motor spirit (PMS), commonly known as petrol. This figure marks an 18.68% increase compared to the N10 trillion spent on fuel imports in 2022.

Tags Dangote Petroleum Refinery, National Bureau of Statistics, S&P

PRESS RELEASE

Dangote Refinery contains minor fire at its effluent treatment plant

Post author By Victor Ogunyinka
Post date June 26, 2024
No Comments on Dangote Refinery contains minor fire at its effluent treatment plant

We have swiftly contained a minor fire incident at our effluent treatment plant (ETP), today Wednesday 26th of June.

There is no cause for alarm as the refinery is operating and there is no recorded injury or body harm to any of our staff on duty.

SIGNED

ANTHONY CHIEJINA

Group Chief Branding & Communications Officer

Dangote Industries Limited

News

Netizens condemn IOCs, saboteurs, say FG must protect Dangote Refinery

Post author By Victor Ogunyinka
Post date June 26, 2024
No Comments on Netizens condemn IOCs, saboteurs, say FG must protect Dangote Refinery

In the wake of the revelation by the Dangote Group on its frustration in accessing crude oil, Nigerians on social media have called out International Oil Companies (IOCs) on sabotaging the process.

Civil Society organisations, Nigerian students and social media users have expressed their displeasure, stating that the Federal Government must protect the Dangote refinery against any form of saboteurs.

The state coordinator of a civil society group, known as Initiative for Defence of Democracy and Justice, Alhaji Aliyu Usman Kaoje, told journalists that “Let us sound a strong warning to them to desist forthwith whatever they are doing directly or indirectly to frustrate the operations of the refinery.”

Financial planning expert, Kalu Aja, queried that “If Dangote needs crude, Nigerian National Petroleum Company (NNPC) should support its 20 per cent investment by giving Dangote its oil equity,” Aja said.

Speaking also on the development, Hector Igbikiowubo, publisher of Sweet Crude Reports asked that “how come the NNPC isn’t allotting all of its 445,000 barrels per day to the Dangote Refinery for refining?” He asked on Channels Television programme.

An X user, with the handle, AgriGATE Nigeria tweeted that “If @DangoteGroup @AlikoDangote refinery fail then @NigeriaGov can be said to be complicit in conspiracy against the refinery. American government goes extra length to protect interest of American companies. Ours can’t be left at mercy of international oil companies.”

Another user, Eguando, appealed to President Bola Tinubu to protect, liberate the economy by making the Dangote Refinery work.

”Dear President @officialABAT, the only refinery built by a Nigerian and African the last 40 yrs in Africa, that will liberate our economy and that of Africa should not fail. @AlikoDangote Refinery needs to get all the protection needed to succeed.

“They the IOCs have enjoyed exporting our Crude oil the last 60 years or more without building one refinery each or collectively building one for us as a country to reap the benefit, yet one Nigerian has taken the initiative and they are want to everything to derail it.”

Ayodeji Oluwadamilare added that “I am not even surprised there are people who want that refinery to fail. They enjoy the status quo of subsidy and don’t want it to end… Wicked humans… They will be shamed at last…”

Shimsun said: “The IOCs must be brought to heel and the corrupt civil servants at NMDPRA who are bent on keeping the system poisonously inefficient should be made to answer for their actions.”

Oseni Lanre stated that “The refinery has to work and it must now!”

It would be recalled that the Vice President, Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, accused International Oil Companies (IOCs) in Nigeria of doing everything to frustrate the survival of Dangote Oil Refinery and Petrochemicals.

Edwin said the IOCs are deliberately and willfully frustrating the refinery’s efforts to buy local crude by jerking up high premium price above the market price, thereby forcing it to import crude from countries as far as United States, with its attendant high costs.

According to him: “While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are trying their best to allocate the crude for us, the IOCs are deliberately and willfully frustrating our efforts to buy the local crude. It would be recalled that the NUPRC, recently met with crude oil producers as well as refineries owners in Nigeria, in a bid to ensure full adherence to Domestic Crude Oil Supply Obligations (DCSO), as enunciated under section 109(2) of the Petroleum Industry Act (PIA). It seems that the IOCs’ objective is to ensure that our Petroleum Refinery fails. It is either they are deliberately asking for ridiculous/humongous premium or, they simply state that crude is not available. At some point, we paid $6 over and above the market price. This has forced us to reduce our output as well as import crude from countries as far as the US, increasing our cost of production.

Tags Dangote Refinery, IOCs, NNPC

News

Dangote accuses IOCs of plotting against Oil Refinery

Post author By Victor Ogunyinka
Post date June 24, 2024
No Comments on Dangote accuses IOCs of plotting against Oil Refinery

Dangote accuses IOCs of plotting for our Oil Refinery to fail — From left: Members of Association of Energy Correspondents of Nigeria (NAEC) in Group Photograph With Vice President, Oil & Gas, Dangote Industries Limited, Devakumar Edwin, Group Chief Branding & Communication Officer, Dangote Industries Ltd, Anthony Chiejina, at the Dangote Oil Refinery and Petrochemical and Fertilizer Plant, Organised One Day Training for Energy Correspondents in Lagos on Friday 21st June 2024.

laments as Regulator (NMDPRA) continues to grant licences to import banned dirty diesel, jet fuel

Vice President, Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, has accused International Oil Companies (IOCs) in Nigeria of doing everything to frustrate the survival of Dangote Oil Refinery and Petrochemicals. Edwin said the IOCs are deliberately and wilfully frustrating the refinery’s efforts to buy local crude by jerking up high premium price above the market price, thereby forcing it to import crude from countries as far as United States, with its attendant high costs.

Speaking to a group of Energy Editors at a one-day training programme, organised by the Dangote Group, Edwin also lamented the activity of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in granting licences, indiscriminately to marketers to import dirty refined products into the country.

He said, “the Federal Government issued 25 licences to build refinery and we are the only one that delivered on promise. In effect, we deserve every support from the Government. It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 per cent of our production, have been exported. We are calling on the Federal Government and regulators to give us the necessary support in order to create jobs and prosperity for the nation.”

“It appears that the objective of the IOCs is to ensure that Nigeria remains a country which exports Crude Oil and imports refined Petroleum Products. They (IOCs) are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their GDP, and dumping the expensive refined products into Nigeria – thus making us to be dependent on imported products. It is the same strategy the multinationals have been adopting in every commodity, making Nigeria and Sub-Saharan Africa to be facing unemployment and poverty, while they create wealth for themselves at our expense. This is exploitation – pure and simple. Unfortunately, the country is also playing into their hands by continuing to issue import licences, at the expense of our economy and at the cost of the health of the Nigerians who are exposed to carcinogenic products.

“In spite of the fact that we are producing and bringing out diesel into the market, complying with ECOWAS regulations and standards, licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian Market. Since the US, EU and UK imposed a Price Cap Scheme from 5th February, 2023 on Russian Petroleum Products, a large number of vessels are waiting near Togo with Russian ultra-high sulphur diesel and, they are being purchased and dumped into the Nigerian Market.

“In fact, some of the European countries were so alarmed about the carcinogenic effect of the extra high sulphur diesel being dumped into the Nigerian Market that countries like Belgium and the Netherlands imposed a ban on such fuel being exported from its country, into West Africa, recently. It is sad that the country is giving import licences for such dirty diesel to be imported into Nigeria, when we have more than adequate petroleum refining capacity locally…”

It would be recalled that in May, Belgium and Netherland adopted new quality standards to halt the export of cheap, low-quality fuels to West Africa, harmonising its standards with those of the European Union. These measures synchronise fuel export standards with the European domestic market, specifically targeting diesel and petrol with high sulphur and chemical content. Historically, these fuels, with sulphur content reaching up to 10,000 ppm, were exported at reduced rates to countries like Nigeria and other West African consumers.

Belgium’s Minister of Environment, Zakia Khattabi, announced that his country followed the Netherland, which in April 2023 also prohibited the export of low-quality petrol and diesel to West Africa via the ports of Amsterdam and Rotterdam. Khattabi emphasised that the Netherlands’ decision to restrict dirty fuel exports had redirected the trade to Belgium, now used by oil producers and traders to export gasoline with excessively high levels of benzene and sulphur.

“For far too long, toxic fuels have been departing from Belgium to destinations including Africa. They cause extremely poor air quality in countries such as Ghana, Nigeria, and Cameroon and are even carcinogenic,” said Khattabi.

In September 2017, an investigation by an international organisation, Public Eye revealed that polluted and toxic fuels were being exported on a large scale from the ports of Rotterdam and Amsterdam for export to African markets. As much as a quarter of the petrol and diesel available in West Africa originates from the ports of Amsterdam, Rotterdam, and Antwerp. These fuels contain sulphur and other pollutants, such as cancer-causing benzene, in quantities up to 400 times the limits permitted in Europe. The Netherlands and Belgium were enjoined to enforce regulations to shield millions of Africans from exposure to toxic fuels.

The decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in granting licenses indiscriminately for the importation of dirty diesel and aviation fuel has made the Dangote refinery to expand into foreign markets. The refinery has recently exported diesel and aviation fuel to Europe and other parts of the world. The same industry players fought us for crashing the price of diesel and aviation fuel, but our aim, as I have said earlier, is to grow our economy.

He noted that because the refinery meets the international standard as well as comply with stringent guidelines and regulations to protect the local environment, it has been able to export its products to Europe and other parts of the world.

While appealing to the Federal Government and the National Assembly to urgently intervene for speedy implementation of the PIA and to ensure the interest of Nigeria and Nigerians are protected, he said: “Recently, the government of Ghana, through legislation has banned the importation of highly contaminated diesel and PMS into their county. It is regrettable that, in Nigeria, import licences are granted despite knowing that we have the capacity to produce nearly double the amount of products needed in Nigeria and even export the surplus. Since January 2021, ECOWAS regulations have prohibited the import of highly contaminated diesel into the region.”

Tags crude oil, Dangote Refinery, IOCs, Nigeria economy

PRESS RELEASE

Dangote Refinery: Shame to past Nigerian govts ― Sen Akpabio

Post author By Victor Ogunyinka
Post date June 8, 2024
No Comments on Dangote Refinery: Shame to past Nigerian govts ― Sen Akpabio

…says ordinary Nigeria Vice-President’s residence takes 14 years to complete

The Senate leadership yesterday described the 650,000bpd Dangote Petroleum Refinery as the 9^th wonder of the world but came hard on those who are skeptical of the completion of Dangote Petroleum Refinery describing them as dream killers.

Indeed, the Senate President, Godswill Akpabio, who led the leadership of the 10^th Senate on a tour of the Refinery in Lagos said detractors of the refinery have all been silenced and that indeed, previous governments have been put to shame with the completion of the project.

He assured that the National Assembly will give it what it takes to protect the project because its one project that Nigeria and indeed Africa should take the ownership and must be protected jealously.

Commending Alhaji Aliko Dangote for completing the construction of the largest single train refinery in the world in a record time, the Senate President said Dangote deserved all the accolades for this feat noting that ordinary residence of Nigeria’s Vice-President could not be completed until after 14 years.

Said he: “They told us in Abuja that Dangote Refinery is farce but we have come here and see for ourselves that the refinery is alive and running. Dangote has put to shame a lot of people. They are wondering how it will be possible for a single individual to accomplish what a whole nation could not accomplish; what 240 million people could not maintain; what a continent could not do and then one person will build 650,000bpd project.

“They keep wondering how one person can succeed where nations have failed; where continent has failed. But Dangote has done it. It is highly commendable. We came to see the refinery because we in the current senate believe in the Nigerian dream. We didn’t come as a doubting Thomas but we came because we believe the project, we came to rekindle the hope of Nigerians and the Nigerian’s can do spirit.”

Senator Akpabio stated that the whole Nigeria couldn’t make refineries function in Kaduna, Pot Harcourt, Warri, but that Dangote and his team have proven that it is possible to dream and achieve it in Nigeria.”

Akpabio said the shame that came with the discovery of oil in Nigeria in 1958 has been removed by Dangote alluding to a report that India does not have oil but his refineries from where the country exports refined products. The inability of the nation to refine its oil has brought untold hardship on Nigerians so much so that Belgian government recently ban the exportation of dirty and condemned fuel to the country to West African country just because we can’t refine our own products.

Describing the refinery as quite unbelievable, Senator Akpabio who was sandwiched by other senators comprising of the Deputy Senate President, Senate Leader, Senator Opeyemi Bamidele and a host of others said the Senate and the entire National Assembly would come up with a robust legislation that would protect the project and others like it.

He stated: “Mr. Dangote, I pity you a lot because even your friends will envy you simply because they will keep wondering how can you succeed when nations, and continents have failed? Now that we have seen for ourselves, we are here to announce our own endorsement of this major project. It is also shocking to see that we produce sufficient fertilisers for Nigeria and enough to be exported.

“As I said we will do our report and we will speak to Mr President to put a stop to fertisliser import to Nigeria. You will hear from us soon.”

Also speaking, Lagos State governor, Babajide Sanwo-Olu, enthused that it is a privilege that the refinery happened in “our time, our state and our country. People talk about dreams, but only few can make it happen. Dangote has put Lagos State and the whole of Nigeria on the world map of excellence.

“I am happy the senate came to see for themselves; Dangote was not ready to rest after successfully building the largest cement factory chain in Africa, second largest sugar refinery in the world. With investment like this, I can assure you that we are on the right path to meet the projected GDP of $1trn by 2030.

“You have the key to city, I have given you long time ago and I am happy you are using it very well,” Governor Sanwo-Olu stated.

In his remark, Mr. Dangote explained that the “visit could not have come at a more auspicious time than now just as the organization is in the process of bringing the various units of this complex integrated refining processes on stream, an eagerly awaited move.”

He stated further that the Dangote Refinery “produces a wide range of high-quality petroleum products, including premium motor spirit (petrol), diesel, kerosene, and jet fuel, all meeting the highest international standards (Euro V Grade). The Refinery apart from adding value to our crude oil, will yield 900,000 KTPA of Polypropylene and 36,000 KTPA of Sulphur and carbon black as by products.

“The Refinery will help boost Nigeria’s economic growth, with the creation of thousands of direct and indirect jobs. During the construction stage, it supported over 150,000 jobs, made up of mostly Nigerians. These Nigerians in the process acquired various skills that are still useful in other construction projects.

“The capacity of the refinery is enough to satisfy domestic demands for refined products. The Refinery will export about 50 per cent of its production thereby generating foreign exchange for the country. It will lead to growth in adjacent sectors such as logistics, shipping, engineering, and servicing.

“The Refinery has the requisite capacity to provide energy security both by providing a ready home for our crude and in ensuring steady availability of petroleum products for all. Nigerians will also get to partake in the financial returns once we list the Refinery on the NGX.

“We are thus making an important contribution to this administration’s plan to grow our GDP to $1 trillion.

“Our Group is at the vanguard of job creation and employment generation in Nigeria. We are the biggest employer of labour after the Federal Government. Dangote Cement sustains about 70,000 (Seventy thousand) direct and indirect jobs across Africa, while the Refinery, Petroleum Chemical Complex and Fertiliser will be able to create over 150,000 (One hundred and fifty thousand) direct and indirect jobs.

“We have remained one of the biggest contributors to government coffers as our three subsidiaries, Dangote Cement, Dangote Sugar Refinery and NASCON Allied Industries paid a total of N788.98 billion as tax and N276 billion in VAT in three years.

“We envision in Nigeria the equivalent of Jamnagar in India where crude oil refining is the backbone of specialised industrial zones, transportation networks, and ancillary industries, contributing to the overall industrialisation of the region. Or Saudi Arabia’s Jubail Industrial City, which is also undergirded by large scale petrochemical complexes.

“The Legislature has a great role to play in this. Globally, the Legislature plays a great role in protecting and supporting domestic industry. I am sure that the members of the 10th National Assembly are more than equal to the task. Supporting the Refinery secures the benefits. It will ensure energy security. As co-creators of value, we appreciate and acknowledge your consistent efforts in ensuring the enactment of vital laws promoting a conducive business environment in the nation,” he said.

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