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.

The Panic of Growing Older, Better Late Than Never 

By:Balami Lazarus 

The title of this write-up is derived from the beautiful literary work of Dr. Lenrie Leopold Wilfred Peters, a fine African poet from Gambia who died in 2009 in Dakar, Senegal. I acknowledged Dr. Peters and his publishers for lifting the title of one of his works. Permit me here to tell you that I was recently in my faraway home, which I will neither call a village nor a town, because I am not competent or qualified to do so, knowing fully well that only experts in the fields of urban and town planning are competent enough to do that. 

However, Shaffa in Borno State, for me, is a semi-urban settlement. At Shaffa, I see my once-active mother, who is aging with wear and tear taking a toll on her from the ailments associated with aging. I can see frustration over her inability to do something herself. I can also see her thoughts of vanity demonstrated by her lack of interest in so many things. Life is becoming meaningless for her at this advanced age. Suddenly, the panic of growing older struck me with a pang of hammer on anvil as it were in the blacksmith shop. Thank God, we are there for you. Richard, my brother, is the closest to her doing the right thing. Sometimes back in 2020, I attended a seminar on investments, and one of the speakers spoke intensively on old age and aging. 

The article is written from the point of view of investments for the rainy days of old age, which will surely someday come with aging that will take its toll on you and me as long as man lives. Active days shall be over, and diminishing returns shall set in. There will be no more profits but losses and deficits, the balance sheet reads. This scenario is real; therefore, you need to have plans and investments. Ignoring old age as a life project is bad without plans. You then find yourself with no resources, no investments to give you money and comfort that might likely prolong your life to age gracefully in good health, God willing. 

Ants are one of the largest insects that belong to the insecta class. Weather or not, ants are among the most active creatures on earth; they are known to be seasonal investors. Their gathering and storage sense is wonderful. Ant stores are deep in the earth crust, well secured for the purpose of keeping their foods for tomorrow. Therefore, as tiny as they are, their wisdom supersedes that of other animals, including some humans, in terms of saving for the future. 

Investments have been one of the most difficult things to do for many people, both young and old. Many of us spend our money on wants, not needs, and equally want to run businesses by ourselves, not thinking of putting our money into organized, profitable business ventures. Well, I will not blame some people for not doing that. More so, the enabling environment is not conducive. And probably it might be due to a lack of understanding or awareness, hindering many from investing for a lifetime. 
To peacefully navigate through old age and the aging phase of life, one needs to put a safety valve on financial income for the voyage of the old age project. Old age without any source of income is the worst life situation, where life will practically be meaningless. Yes, you are now old and aging—a burden, a liability, and beggarly poor physically and in health. Children have grown and gone; grandchildren are keeping away from you because you have nothing to offer. Aging is knocking hard on you each day. Better late than never. 

What will it cost to be old and aging without any source of income? The impact on old age and aging is colossal. But with good, profitable investments in either real estate, stocks, agriculture, or any other source of steady income, aging will be graceful without stress but fun throughout. At this stage and situation, you are more stable emotionally, mentally, physically, and spiritually in a cozy manner in the company of friends and relatives who are always there and/or asking what to do for you. Because you have what it takes to keep some of them around you. While some of your contemporaries are still trudging and sweating hard with young people who are equal to their grandchildren, 

Better late than never, young men should begin to develop habits for life savings or investments where their money will work and grow for them. Though the harvest may be long, patience and time will no doubt be in your favor in the future. This simple principle is more applicable in the capital market, known as the stock market. The formula is: money + stocks x time = patience. Therefore, patience is equal to capital appreciation or dividends in millions or billions of naira over a long period of time. People should learn to look out for financial assets and investments. Getting old and aging is certain as one lives. 

Balami, a Publisher/Columnist (8036779290)

The Panic of Growing Older, Better Late Than Never 

Third Eyes and the Response Units: A Positive Change in Police Attitude 

By: Balami Lazarus 

As a child growing up in Zaria, it marked the beginning of my understanding of my environment and community. Subsequently, it was my first encounter with law enforcement agents—the police. Later, I came to know and understand that the police are the nearest and closest law officers to the members of the public in Nigeria, which is thus applicable to other countries.  Whereas, the ticking of the clock ushered in the passage of time that has long made nonsense of the Nigeria Police Force, caused or created by their actions and inactions, catalized by some of their officers and men in line of duty in an unprofessional manner, which has muted many patriotic law-abiding citizens from assisting the NPF in policing the country with vital information that will aid in security and prevent crime and criminality for the good of society in general. But their attitude, arising from some bad eggs from the Force, was capped with brutality, corruption, treachery, and unprofessional conduct that decayed the good works of the NPF. 

To my mind, some police are using their privileged positions as law enforcement agents to abuse powers entrusted to them by the government and people of Nigeria, and of course, this has created wide cracks, parting aside confidence and trust between law-abiding citizens and the subject in question. However, that was in the past. Things about them are changing these days. Security is a collective responsibility of all citizens, while the police are the base of the internal security affairs of our dear nation-state, working 24/7, 365 days a year, a year, protecting lives and property, maintaining law and order, and arresting criminals and offenders for prosecution before courts of competent jurisdiction. Therefore, every good citizen of this country is supposed to be ‘The Third Eyes’ of the NPF in the true sense of security as a way of reducing crime and criminality. 

The changes that took place in recent times in the NPF have brought hope and motivated citizens to participate and take ownership of security issues in their immediate environment by using the phrase “If you see something, say something.” In fact, it has gone down well in homes and families, making people speak out on crime and criminality, including domestic violence that is rampant in some homes. The changes in force operations are the roles undertaken by the police response units, such as the Rapid Response Unit and the Complaint Response Unit, among others. These units are found in various state police commands with phone numbers for public use. These initiatives have endeared citizens to the police. 

In the course of writing this piece, I was impressed with the responses of some people. “The NPF of today is more efficient, responsive, and friendly. Security is now everybody’s business. I now agree that the police are not only your friend but your brother.” My findings further revealed that most law-abiding Nigerians are becoming ‘The Third Eyes’ of the police in their individual neighborhoods. The NPF should endeavor to do more public enlightenment to raise awareness and make their work easier. I believe this will ripple away the black spots dotting our police. 

• Balami, a Publisher/Columnist: 08036779290
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• Third Eyes and the Response Units: A Positive Change in Police Attitude