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Dangote refinery: when it rains it pours.
Dangote refinery: when it rains it pours.
By Tahir Ibrahim Tahir Talban Bauchi.
When it rains it pours is the best phrase to describe what is happening to the Dangote refinery, as it grapples with one challenge after the other, especially as it prepares for the take-off of the PMS component of its refining processes.
Dangote refinery is the largest investment by a Nigerian in Nigeria in perhaps our entire history.
The investment is valued at $20 billion.
The land purchase alone cost $100 million, with another $420 million spent on revamping and reconstruction of the swamp to make it viable for the construction of the refinery. That is close to a trillion naira in land preparation and pre-construction expenditure.
A port had to be built to accommodate the size of the refinery’s equipment and parts, including building a power plant with the capacity of supplying 1500 MW of electricity. Also, a highway had to be constructed for the delivery of equipments from the port to the refinery, along with the development of 125 kms of pipeline for the delivery of crude oil to the refinery.
The conceptualisation of the project was done over 15 years ago, with its construction taking atleast 7 to 8 years. Industry experts worldwide had warned Alh. Aliko Dangote that it was a crazy project, he admits. He did see the crazy it was when he started, as the challenges ballooned in number and size. Indeed he was ‘crazier’ enough to accomplish its development.
The real crazy now are the impediments and bottlenecks he is facing, as he battles to actualize the aspiration of solving Nigeria’s perennial problem of importing petroleum products, as an oil producing country.
At first it was the International Oil Companies, IOCs, refusing to sell crude to the Dangote refinery, or selling at about $6 more than global prices.
The NUPRC, Nigeria Upstream Petroleum Regulatory Commission had to wade in to secure oil supply for the refinery. Then oil dealers were at it, charging as high as $4 as agency fees, again, against global practices.
The government had to step up against the IOCs and it seemed that it was a resolved issue. Then came a fire incident in the refinery which has caused atleast a month’s delay in the production of PMS, known as petrol, which is what the Nigerian populace is earnestly yearning for, from the refinery.
The entry of Dangote refinery into the diesel market has caused for a reduction of diesel prices by about 60%. This has definitely upset the diesel importation industry and has bloated the number of individuals and cabals coming against the Dangote refinery. Despite all these challenges, the refinery seemed to be on course to deliver petrol to the Nigerian market. But the ‘crazy’ in the industry has probably just set in again, and said, not so fast Dangote!
Very scathing remarks, uncharacteristic of an umpire, were made by the CEO of the Nigeria Midstream and Downstream Petroleum Regulatory Agency, NMDPRA, Engr. Farouk Ahmed, which cast aspersions on the standards, productivity and even the viability of the Dangote refinery.
He castigated the Sulphur content of the diesel from Dangote refinery, putting it at between 650-1200 ppm.
A visit by the Speaker of the House of Representatives on a fact finding mission confirmed that it was at 87.6 ppm. Dangote clarified that they were on their way to declaring a content of 10 ppm. Further testing from other filling stations proved that Dangote refinery’s diesel was far more superior in sulphur content.
There’s also the other parameter of the flashpoint, with Dangote’s diesel recording 90° celsius, compared to other marketers whose product recorded between 40° to 70° celsius. The recommended standard is 66° celsius, further proving that Dangote’s diesel was the best in the market. The Dangote lab for the testing was accredited by the same NMDPRA in March, 2024. NMDPRA knows that as a new refinery, the earliest stages of production would definitely have a high sulphur content compared to subsequent or continued production.
The CEO of NMDPRA also said that the refinery was at 45% completion. As a regulator, he is well aware of the stages involved in the completion of the refinery, where all the products it is designed to produce, can be actually processed and produced by the refinery. For now, two major products are set to be available to the Nigerian market, with one already in use. It is supposed to be in stages. So what was the statement meant to achieve? He also called the refinery a monopoly, while infact, several other modular refineries have been licensed, with quite a number in production.
He lamented that Dangote wanted fuel imports stopped. But isn’t that the desire of every Nigerian? Well of course minus those that make a kill, importing petroleum products, killing our local refineries. NNPC Ltd. says atleast one of their refineries would be producing petroleum products by September this year. In a market where there are multiple producers, how does Dangote refinery amount to a monopoly?
He also complained that Dangote’s refinery is a threat to the energy security of the country. Under the importation regime, we have suffered 3 fuel scarcities in the last 6 months alone. So where is the security in importation? Are we not better off with a steady supply from Dangote? Afterall the refinery is building a storage capacity to have almost a billion litres of petrol in storage.
The CEO’s remarks are in bad light and look like an attempt to demarket the Dangote refinery. Unfortunately it has backfired and has pitched the Nigerian people to stand solidly behind Dangote. It is rare for the people to rally behind a super rich man like Aliko, but what the refinery stands for, is much larger than Aliko Dangote. It stands for the industrialisation of Africa. It stands to change our fortunes, in terms of the hardship and exploitation that we have suffered, over a product in our backyard, that has refused to be available in our front yard. Those comments paint the CEO of NMDPRA as one against the success story of the refinery, and the solutions it stands to bring to one of our biggest problems. The gains are too numerous to mention. From fx gains, to employment, to ending scarcities and black marketing.. there are far too many merits to this project, than the cries of monopoly and what have you. We’d rather be monopolised by our own citizen, than continue to be the dumping ground of oil dealers around the world, that have made our country their cash cow, milking us as they please.
It looks like Dangote’s fuel will be cheaper, just like his diesel, and some dealers don’t want that to happen. With those statements by the umpire, investors are being pushed away.
Steel investments by the Dangote group have now been abandoned due to those unsavory statements. What does it tell other investors around the world about us?
Tahir is Talban Bauchi.
Dangote refinery: when it rains it pours.
Columns
University Courses: Marketable and Non-Marketable Courses—How True?
University Courses: Marketable and Non-Marketable Courses—How True?
By: Balami Lazarus
Let me make it clear hereinafter that I am not against any academic course or the role of guidance and counseling for good career choice, provided that our young men and women will be guided properly. Not long ago, I visited a friend who teaches at one of the universities. It was interesting to be with him, having spent years without seeing each other.
My friend and I took time out and had a long discussion on national issues concerning our country in an attempt to proffer verbal solutions that will only end and stop as mere talks, which most Nigerians are good at doing, including this writer.
In furtherance to our discussion, I was very particular about education and how to improve the sector in terms of standards, academic excellence, and skills. I also raised the issue of corruption in the system. In the process I immediately recalled what some parents and guardians are peddling around saying: “There are marketable and non-marketable courses in our universities.
“For me, I know that for hundreds of years, universities are known to be great centers of teaching, learning,learning and research, contributing to arts, science, and technology for the purpose of national development. My friend was quick to add that “the academic corruption is perpetrated by some lecturers and students, monetarily and sexually.”
Having discussed the corruption bug. I asked the university Don if there are any courses as marketable and non-marketable courses in our universities. This one question gave the Don a good laugh. He looked at me and said, “I have spent years as a teacher in the university academic department. I have never heard of any course(s) known as marketable and non-marketable academic disciplines or any faculty/department that run such courses.
As young secondary school students aspiring to go to the university to study courses of our choices where our interest lies and looking forward to becoming either political scientists, engineers, lawyers, historians, or doctors, and so on. In this regard, we had never heard or been told by our teachers or parents that there are marketable and non-marketable academic courses. Therefore, we should study the marketable courses.
The question I always asked myself was, where are these courses? What we have in our universities are courses leading to different human endeavors. Whatever one decided to call these courses, what is obtainable today is the need to have to add skills to your academic training; employers of labor are today skills-oriented for those who are hoping to be employed.
Balami, a Publisher/Columnist, 08036779290
University Courses: Marketable and Non-Marketable Courses—How True?
Columns
With Fury of a Tempest, Alau Dam Flood
With Fury of a Tempest, Alau Dam Flood
By: Balami Lazarus
Who wants to be a millionaire? a television quiz program anchored by one Frank Idoho, which I hardly missed. I recalled a question once asked: Where is Lake Alau? In the options, there was Borno state among other states. The young man on the hot seat gave a wrong answer. I believe because Lake Alau was then not popular, unlike its cousin, Lake Chad.
Not much is known about the Lake, Alau, and the dam known and called Lake Alau Dam put together. Let me first start with the lake as a natural geographical feature, a large body of water surrounded by land. However, and to the best of my findings, there is no available written document on the history of this lake in question. But it held that the Lake was there many years traceable to the period of the Kanem- Borno Empire. While the present Alau was a small settlement that emerged during the formative years of Shehu’s dynasty from 1846 to the present day. It later grew into a village with people of Kanuri extraction.
Alau is today part of the Konduga Local Government Area of Borno state, some few kilometers away from Maiduguri city center. For the purpose of providing portable drinking water and to improve agriculture through irrigation farming and fishing, a dam was constructed by the past administration of the state from 1984 to 1986. The project was tagged as Water for Borno. Thereby, Lake Alau Dam has become part of the people’s lives, for its importance cannot be quantified.
The recent Alau Dam flood that nearly swept away the city of Maiduguri came with a raging fury of a tempest in September 2024 I will liken to one of the works of William Shakespeare—”The Tempest.”TheTempest”. That of the play was simply and deliberately raised to humble palace traitor Antonio and his co-conspirators, who ousted Duke Prospero, whom they marooned on a deserted island, leaving him to his fate. But ours came with devastating destruction and killing with ravaging effect from head to tail, which has caused unestimated damage.
The flood was not because of the heavy rainfall experienced last season but from the overflow of the dam and subsequent breakoff of its decks. My last visit to Lake Alau Dam with some friends was years back. What was observed and saw were obsolete facilities that were outdated, old, and weakly decked. There was nothing to show that the dam is being cared for. But while growing up in Zaria as kids, we were so used to seeing Kubani and the University (ABU) dams being opened up to let out large quantities of water to avoid overflow and flooding. Has Alau Dam ever experienced that? Has it been dredged?
Therefore, the 13-man committee led by Mr. Liman Gana Mustapha, a professional town planner, may wish to consider these questions as an inroad to finding a lasting solution to the flood matter.
Balami, a Publisher/Columnist. 08036779290
With Fury of a Tempest, Alau Dam Flood
Columns
The Rise and Fall of Garkida, a Social Decline
The Rise and Fall of Garkida, a Social Decline
By: Balami Lazarus
In my recent visit to see my aged mother in Shaffa, a small rural town. In a chat with some of my peers, Garkida came up, and one of us immediately informed the group that the town is socially dredged. I made some findings, and you may wish to agree. I believed students of history my generation were once taught about the rise and fall of great empires, kingdoms, rulers, warriors, and other historical events during our secondary school days. In the cause of those lessons, our imaginations were always taken far to other lands.
We never thought that someday there would be a fall or decline of our own, which could be a town, village, or settlement, but never like the fall of the known historical empires/kingdoms of Oyo, Jukun, Fante/Ashante, Kanem-Borno, Songhai, etc. To rise is a difficult task in life or in the course of growth, be it individual, town, or city. But to fall is easy. Garkida has rose and fallen, or, to say, declined socially. Once a bubbling rural town in Buraland, being in Gombi Local Government Area of Adamawa State has nose-dived from the social ladder.
As a historian, I will not subscribe to the use of the term fall; it will defile my histo-journalistic sense of reasoning because Garkida is a proper noun and is there real. So it will rather go well with me and perhaps some readers of this essay to accept Declined as a better use of historical language for the purpose of this work. I am not a native of Garkida and have never lived there, but it was the home of my cousins and nieces long before now.
As a young man, I had it well with friends when the town was in her social chemistry and apogee. In spite of her decline, the arrears in our kitty, notwithstanding the flow of time, are the mutual friendship, an indelible mark in our social life. I remember clearly as a holiday-maker with my grandmother at Shaffa, Garkida was the in-thing in our youthful days because of the mass social activities that used to take place there.
There were social interactions with friends and relatives from different places, parties of all kinds—a social front burner. And to most of my peers, it was the center of today’s mobile social handle—Facebook, where you meet and make new friends. That was Garkida for us. As a rural town, it flourished with glamour, elegance, and pride, triggered by the social engineering of Who is Who? The creme de la creme of her sons and daughters who made nane in their vocations or professions that promoted and spread the name of Garkida as social lighthouse.
It was the abode of top military brass in the ranks of generals. Her businessmen once made the town tick as a cluster of has. It was the nerve of vogue and socialites in Buraland. There was declined in this capacity. Historically, Garkida came to the limelight and appeared on the colonial map of Nigeria in 1923, when the white Christian missionaries of CBN/EYN first settled there and made it their home on the 17th March of the aforementioned year. The beginning of her social mobility started in the 1970s, through the 1980s, to the dawn of the 1990s, her zenith.
I doff my hat for the united daughters of Garkida; credit goes to them; their exposures, taste, beauty, love, elegance, sophistication, unity of purpose, and social agrandisement made them wives of husbands of men from far and near who are of different walks of life. The women of Garkida were a central force, once the venus de milo of the town before its social decline. I cannot conclude this article without appreciating the fact that Garkida was the center of learning and vocational training and once the hold of good and efficient healthcare services in Buraland and its neighbors. Today, Garkida is no longer in the vantage position.
Balami, a Publisher/Columnist, 08036779290.
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