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Dangote refinery: when it rains it pours.
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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
Letter to Kashim Shettima at 58: Happy Birthday, Mr. Vice President
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Letter to Kashim Shettima at 58: Happy Birthday, Mr. Vice President
By: Dr. James Bwala
To Kashim Shettima, my esteemed vice president, I would like to wish you a very happy 58th birthday on this memorable day. Many people have found inspiration in your leadership and commitment to serve our nation, and I am honored to have the chance to offer my sincere congratulations on reaching this significant accomplishment.
As a default-level student of the Kashmir political class, I am impressed by your poise and ethics in navigating the complexity of politics. The policies you have supported and the initiatives you have started demonstrate your dedication to raising the standard of living for the citizens of our country. I sincerely appreciate and support your idea for a brighter future for everyone.
Happy Birthday, Mr. Vice President
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What it means to be a public servant has been exemplified by your leadership. We have taken note of your persistent efforts to push for positive change and address the issues affecting our nation. I sincerely appreciate your commitment to enhancing infrastructure, healthcare, and education since it has positively impacted countless lives. It is well known that you are a kind and accomplished person, especially now that you are 58 years old. You have undoubtedly contributed significantly to the advancement of both your state and the nation as a whole. More leadership and counting have been seen in your records
READ ALSO:https://newsng.ng/umth-child-institute-center-safe-haven-for-child-care/
Your empathy for others who are less fortunate is one of your best traits. Everywhere you go, you have continuously sought to make a difference in the lives of vulnerable and underprivileged groups. You have put in place a number of social welfare initiatives aimed at helping the poor, widows, orphans, and internally displaced people. You continue to be a tremendous achiever who has advanced significantly in a number of areas in addition to your compassion.
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During your tenure as the governor of Borno State, you managed the execution of multiple developmental initiatives that yielded favorable results for the state’s healthcare, education, and infrastructure. Borno State benefited from increased access to high-quality education, broader healthcare coverage, and greater infrastructure development under your leadership.
In Borno State, an area beset by violence and insurgencies for more than ten years, you have played a crucial role in promoting peace and security. In spite of the obstacles presented by the Boko Haram insurgency, you persisted in your will to advance peace and stability in the area.
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You have been an outspoken supporter of peaceful cohabitation among Borno State’s diverse population and have devoted countless hours to bridging the divide between various ethnic and religious groupings. You distinguish yourself from other political leaders by your commitment to public service and your care for the well-being of your constituents. Many people in Nigeria and beyond admire and respect you for your outstanding accomplishments and kindness.
As a kind and accomplished individual who has significantly aided in the growth of Borno State and Nigeria overall. You are a genuinely amazing leader because of your devotion to serving the public, your desire to better the lives of those who are less fortunate, and your support of peace and security. As you commemorate your 58th birthday this year, it’s obvious that future generations will be motivated by your example to work for a more positive, inclusive society for all.
As you become older, your charitable endeavors also become more significant in addition to your political career. Thousands of lives have been impacted by the Kashim Shettima Foundation, which helps the less fortunate in Borno State and beyond with healthcare, education, and other services.
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It has also contributed to the reduction of poverty and enhancement of the general well-being of the populace. You continue to be regarded as a significant role in Nigerian politics on many fronts, valued for your honesty, diligence, and devotion to helping your fellow citizens. Your tenure as Borno State’s governor has left a lasting impression on the people you served, and it will continue to motivate upcoming generations of leaders to give selflessly to the advancement of our society.
I hope you pause to consider all that you have achieved and the lives you have impacted as you celebrate your 58th birthday. Your leadership has had an impact, and I have no doubt that your love and dedication to serving our country will continue to motivate others. Mr. Vice President, I hope your special day is filled with joy and happiness. I hope you have a happy, healthy, and prosperous day.
Happy 58th birthday! Sincerely, Dr. James Bwala, PhD.
Letter to Kashim Shettima at 58: Happy Birthday, Mr. Vice President
Columns
Counting our blessings from the protests
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Counting our blessings from the protests
By Kunle Oyatomi
Many are wont to mourn and count their losses after a period of hostilities, conflict or bitter experience, such as Nigeria witnessed during the 10-day #EndBadGovernance protests nationwide. Well, I’m going to disappoint the reader who thinks I’ll be following that beaten track. I’m going to be like our leader, President Bola Ahmed Tinubu, who as he addressed his compatriots during the crisis, saw nothing but hope and fulfillment of collective dreams at the end of it all, despite the destruction and deaths that accompanied the wild riots, especially in parts of the north. Of course there were losses. I’m not ignorant about that. I can’t be like the ostrich which erroneously assumed that because it hid its head in the sea sand, all else about its body was also hidden. Wrong. I’m also not saying that we didn’t suffer casualties; but it’s turning out that from these losses, we’ve secured great gain.
My first insight into hope ahead came from my study of the president’s widely publicized Radio-TV address while the protests raged. He said: ’’My dear Nigerians, especially our youth, I have heard you loud and clear. I understand the pain and frustration that drive these protests, and I want to assure you that our government is committed to listening and addressing the concerns of our citizens…But we must not let violence tear our nation…Under the circumstances, I hereby enjoin protesters and the organisers to suspend any further protest and create room for dialogue, which I have always acceded to at the slightest opportunity. Nigeria requires all hands on deck and needs us all – regardless of age, party, tribe, religion or other divides, to work together in reshaping our destiny as a nation.’’ Later, the Federal Government was, through the Minister of Industry, Trade and investment, Dr. Doris Uzoka Anite, to lead us into the depth of what the nation lost to the ‘we’re hungry’ demonstrations. She declared: ‘’The loss of lives during the protests is saddening. My thoughts are with the families affected. The looting, resulting in billions lost, is a severe setback for our economy and entrepreneurs.’’
The Minister said Nigeria lost an estimated N500b to the crisis. Going into a few specifics, Anite said in her official X handle: ‘’…around N52 billion worth of goods were destroyed while the death toll from the protest… (was)21.” No doubt, these are grievously humongous human and economic bereavements. But, as I said at the opening of this piece, I’d not be bogged down by them; we should rather move on, encouraged by what began to emerge after the so-called days of rage. Events moved at a faster pace than the speed of the demonstrators and their sponsors.
These developments represent gains we can’t overlook. They amount to gains we must reckon with, because they far outweigh the losses. They point to a threshold of hope. Quickly, the Tinubu Administration rolled out a 10-fold initiative that gave us a silver lining at the end of what looked like a dark tunnel. These included the Student Loan, Compressed Natural Gas (CNG) Initiative, Micro and Small Business Loans, Housing Initiatives, Nano-Business, and Skill-Up Artisans Programme, (SUPA). What do we discern from these projects? They target the youth and the deprived of society. In a word, they are addressing the same challenges our young people were impatiently warring against. These were not just idle propositions by the Tinubu government. Not at all, because the CNG project has since been launched by the president.
He has just inaugurated 30 CNG buses with 3000-passenger capacity. How about the Student Loans Scheme? It has also come into effect. Only days ago, the media was awash with reports that our universities have been receiving tens of millions of naira from the federal authorities being disbursement of the loans. Now, you’d be wondering if the government hasn’t handled the issues of insecurity and food shortages. It has. The government has deployed 10000 security operatives to protect farmers from hoodlums who invade their lands and hinder productivity, thus denying the society from the benefits of food production.
These protectors of our farmers are to operate all over the federation. Still on crime, news has just reached Nigerians that the central government, through the National Orientation Agency, NOA, has developed an application known as Mobiliser meant for youths to report crimes and criminality in their areas within their comfort zones. NOA DG, Issa Lanre-Oniru said the project has a two-fold agenda: to enable the youth have a sense of belonging and to engage them in the war against insecurity. The federal government of Bola Tinubu has also quickly moved to reverse the migration of Nigeria’s health workers to the Western Hemisphere.
Tinubu just approved the National Policy on Health Workforce Migration to contain the challenges facing the country’s human resources in the healthcare system. The government said ‘’the policy is more than just a response to the ongoing exodus of healthcare professionals but a comprehensive strategy to manage, harness, and reverse health worker migration.’’ The Tinubu administration has also cast its attention on the industry sector, to wit, Ajaokuta Steel, a most wealth and employment generating centre, which has been left moribund for decades since it was commissioned. The government has brought in 23 advance team of Original Builders of Ajaokuta Steel Company from Russia for Technical Audit with a view to resuscitating the complex and make it viable for the benefit of Nigeria and its citizens. The Russians have already inspected several units like the thermal power plant, light mills and Oxygen Plant among others. And as international observers considered all these interventions of the Tinubu era in less than one a half years, they returned with a verdict that Nigeria now ranks as a Top Investment Destination in Africa.
What were the yardsticks: economic performance and potential, market accessibility and innovation, economic stability and investment climate, as well as social and human development. What we deduce from all these is that although there are still challenges of foreign exchange shortages and infrastructure deficits, Nigeria is poised for a reawakening that would make it recognized as a giant not only in Africa, but also in the global space. All we need is to allow the Tinubu Administration a gestational era to be characterized by patience and cooperation on the part of the citizens.
*Oyatomi Esq. is a member of Independent Media and Policy Initiative, IMPI, Abuja.
Columns
Are children liabilities or assets?
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Are children liabilities or assets?
By: Balami Lazarus
In the village of Wulkancha, every family is blessed with children, males and females. But Thalma was the only married woman who has had no fruit from the womb after having undergone several medical tests and examinations by experts. Mrs. Thalma Oluwale Nnamani’s results were always positive; some sympathized with her, wishing her good luck in having her own children.
While to some she is a laughing stock, a barren witch. For others, they don’t care but complain about their children as burdens and liabilities. Therefore, when you raise the issue of children in public spaces, it draws and generates different concerns and attention.
It could be pity, care, help, or emotion from individuals or organizations. But if you are to hand over children to some of these individuals or bodies, you will be shocked at what this child or children will be turned into because, for them, children are liabilities, theirs inclusive.
Let me say here that those who know me too well will tell you that I have a soft spot for children, and this character has caused me positive troubles and indeed misunderstandings with some neighbors, friends, and relatives.
The case of Nneamaka Nwachukwu vs. the State (Plateau State Government, Nov. 2022), in which my organization, NEWSng, and I were involved in the brutal killing of Margret Joshua, is one of many that have to do with the children we are in.
Anyone who labels children as liabilities, not assets, can at any point in time maltreat, exploit, or even literally kill the child.
Children are a gift from God that comes through you as your like in life, your true representative here on earth. You and I, as parents, are spiritually mandated in their innocence to police them in guidance and protection through life to the age of consent. But there are shylocks who see them as liabilities.
To use the term liability on your own children is insultive, degrading, dehumanizing, and an abuse to the human race. I will loosely prefer the term nuisance to be used on them because of their carefree acts as part of their growing up. And we were once like them. It is then uncalled for to look at them as liabilities but rather as potential assets full of unlimited source materials.
Now here you are, between two universal questions. And if you are for liabilities, my question for you on behalf of that child or children is: did he or did they ask for their birth?
Balami, a publisher and columnist, 08036779290.
Are children liabilities or assets?
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