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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
IBUAM: Redefining the Nigerian Aerospace and Systems Through Aeronautics Disciplines
IBUAM: Redefining the Nigerian Aerospace and Systems Through Aeronautics Disciplines
By: Balami Lazarus
The Wright brothers invented and flew the first airplane in 1903. They never knew that they had set the growth, development, and progress of the aviation industry with their invention.
Following the establishment of Isaac Balami University of Aeronautics and Management (IBUAM), Nigerians are optimistic that it will redefine with sophistication the aerospace systems, giving a new definition of the aviation through her academic courses by the quality of graduates that shall come on board sooner or later with made-in-Nigeria aircraft, their parts, and other related inventions.
I remembered one of my bright students whom I taught some years past, who has clamped and insulated her mind and interest to studying aeronautics engineering; my encouragements for her were endless.
And here we are, with a university that will give every candidate equal opportunities in his or her course of study, where future global stars are going to be trained to rule the aviation industry and her economy—national and international—through IBUAM academic disciplines.
The emergence of specialized universities in Nigeria was a big reality in the realm of our educational systems. These universities are no doubt making progress towards improving specialization by their trained professionals in various fields of studies for economic growth and industrialization, like what IBUAM is intended to do through one of her courses rarely taught in some Nigerian universities.
IBUAM is here to cater to the near-starved aviation needs of human capital and material resources through aeronautics engineering systems/management.
All courses at IBUAM are important for our nation’s development and in the aviation sector. Interestingly, IBUAM has state-of-the-art facilities to enhance teaching and learning—hangers, special workshops, tools, materials, and equipment. Her classrooms/lecture halls are also equipped with modern/standard facilities meant for effective and qualitative academic teaching and practical lessons for excellent performance of her students in their various courses. Therefore, IBUAM is doing the right thing in our education space and time.
Before I started this work, I was focused, mind made up on one fundamental course offered at IBUAM, and by all standards, that will automatically change the foundation and structure of the aerospace, which will provide Nigeria with aircraft and parts through the Aerospace Engineering course (B. Aerospace Engineering). This academic discipline is where students are expected to be trained in the science and skills of aerospace engineering “meant for designing, building, aircraft maintenance, and spacecraft systems.”
Therefore, this course of study and its related associates (metaphorically) will redefine the aviation aerospace and its science of engineering arts/skills, provided IBAUM academic teaching and learning are capped with practicals.
Engr. Isaac David Balami
whose passion for education and aeronautics is rooted in IBUAM, said that courses of study are all in the womb of JAMB requirements for candidates seeking admission in IBUAM: “For better and further understanding of our admission requirements and equal opportunities, I refer intended candidates to go through the JAMB prospectus.”
With no iota of doubt in my mind, this university will put Nigeria on the international aviation map of progress and value.
Balami, Publisher/Columnist. 08036779290
IBUAM: Redefining the Nigerian Aerospace and Systems Through Aeronautics Disciplines
Columns
Fela, Seun Kuti, Wizkid and the Erratic Beliefs of The Generation Zees in Nigeria
My Binoculars:
Fela, Seun Kuti, Wizkid and the Erratic Beliefs of The Generation Zees in Nigeria
By: Bodunrin Kayode
One of the most unintelligent discussions I have heard in recent times is the comparison of a human institution like Fela Kuti to any ordinary individual. It sounds so dumb, awkward and misplaced that sometimes one wonders why so called “right thinking people” wander into such useless discussions like the impulsive Z generation known popularly as genzees. Most generation Zee fellows are adventurous and misuse communication using the latest Ai technology which makes them to assume they are smarter than even the millennials, born before 2000 who are much more closer to them than the generation X which reigned long after legends like Fela Kuti was born.
This is because they can make enormous amounts of money through music or any crafts with the help of the AI technology. Those who find themselves in the culture, art and music are the worse because they become millionaires by just talking or singing any rubbish like they do in the contemporary music at times and it is called “content” fit for consumption. Some even use very foul languages not fit for the airspace yet unfit presenters and uneducated DJ’s call them influencers following after the way of the west where all manner of crude and uncouth behavioral pattern becomes the norm. There is no reason for the comparison of Fela a “baby boomer” to a restless kid like Wizkid. It is an abomination and should never happen under the sun. It’s a sin for anyone to make such comparison because Fela is the founder of the genre of the music most of the genzee musicians are singing today. How does an angel or a mere mortal compare himself to their Creator? Such thoughts should not be allowed to take place at all. It’s disgusting.
Wizkid’s obscene challenge of Fela’s position as the founder of afro beat as it is known today
Imagine a badly influenced genzee element who calls himself Wizkid wakes up and suddenly realizes that he is actually an adult fit to contest superiority with an institution like Baba Fela Kuti. As far as some of us who witnessed the great “anikulapo” Kuti first hand in his shrine can remember, Wizkid was not born when Fela challenged ruthless military authorities to account for their wicked deeds against the people. Consequently, it is really needless for even Seun Kuti to be in a hurry to defend the larger than life pedigree of his father. That too will be heavy for Seun to stand up, carry on his head and defend. He should have allowed all those who were mentees of Fela to get up and take up verbal arms against attention seeking detractors led by this Wiz Pekin way nor know say the thing way elders de see at the foot of a palm tree e nor go see am at all even if he climbs up to the top of the tree. It is often said in Yoruba language that ” Atari ajanaku kii se ewu omode” meaning that the head of an elephant is not the kind of load a child can carry.” And this is for Wizkid who has refused to grow up. Fela’s daughter aunty Yeni and Femi Kuti have placed it succinctly in recent responses to the altercation between Seun and WizKid. And the summary of what they said is that it was pointless fighting for someone who became an institution long before his demise. And long before Wizkid was born or started imitating the nuances of Baba Fela in the name of Afro beat. Fela was idolized by millions of mentees all over the world and we don’t need to ask the family to produce evidence of this. That history was removed from the curriculum of genzees making it difficult for them to understand the past is not their fault. It is a calculated plot of the oligarchs who have an agenda and would not want even millennials to remember who was Funmilayo Ransome Kuti the mother of Fela and what role she played in raw activism against the jack boots of colonialists in Nigeria.
Abani Eda, the deity who walked around with death in his pocket
Fela regarded himself as the ” abani Eda” the strange one who changed his name from Ransome Kuti to Anikulapo Kuti meaning he walked around with death in his pocket. That itself was a dangerous threat to the military who hunted him day and night looking for faults to kill him. He never gave them the opportunity to humiliate or intimidate him even after killing his mother Fumilayo Ransom Kuti whom they thought was his spiritual backbone. Rather, it made Fela more daring and horned the activist in him further. Incarceration equally never broke him because that is always the bottom line of any dictatorial government involved in repressive tendencies.
Regardless of what anyone thinks, Fela Kuti was not just an individual that can be messed around with but a deity of some sorts who fought the deadliest battles in his life against injustice. A man that built the foundation for a genre of music which is now called “afro beat” today and one badly brought up genzee brat just wakes up to name drop and equate himself to Fela the oracle of afro beat in the whole world..it’s so insulting and unintelligent of him to even conceive this kind of talk about “I big pass your papa” “or i get money pass your papa” while thrashing a beef with Seun Kuti. It was arrant nonsense that should never be allowed to be prolonged afterwards Fela reached out to the entire world with his popular pidgin English lyrics which dominated even interviews with international news media houses. Of a truth, this talk about who is greater should not even arise because it is uncalled for, insulting and a dangerous mark of disrespect against the iconic statue of Fela Kuti.
For young people like Wizkid who do not know who Fela is, they should go take a look into his background because none of them were born when Fela dared to speak to power including military governments which was in vogue in Nigeria before 2000 when the generation zees started coming into this world.
My advice to the Kuti Family is to ignore the young man because we all know about his dangerous genzee influencing roles and exigencies way beyond what Fela would have tolerated in his Ikeja Shrine.
Fela, Seun Kuti, Wizkid and the Erratic Beliefs of The Generation Zees in Nigeria
Columns
Anatomy of Electronic Platforms: The Honey Badger Attitudes/Character
Anatomy of Electronic Platforms: The Honey Badger Attitudes/Character
By: Balami Lazarus
As a young boy I have heard of this small-sized animal, the honey badger, called “Dagi” in the Hausa language, that belongs to the Mustelidae family of otters, weasels, ferrets, and a few others of its kind. It has a white, single stripe pattern on its back. Honey badgers are rated the most fearless animal on earth today, its size notwithstanding. It has no respect for territorial boundaries or the privacy of other animals in the wild.
Honey badgers move and hunt freely at any point in time. They are known for their large appetite; anything goes for either breakfast, lunch, or dinner. Honey juice and snacks are their favorites. Honey badgers fight other animals without hesitation, undermining the consequences. This is the behavior and activities of some individuals on their platforms.
The pictures painted in words are typical of the anatomy of some electronic platforms in this age of digital systems, where many more honey badgers have emerged.
I am a member of some platforms and am writing this piece from experience. As a groping participant of my platform who always tried to make meaningful contributions with glitches of qualitative and educative postings in an attempt to facilitate the free flow of information among members of my group.
Social platforms have made it easier for the free flow of ideas and information accessible to every member of the group, with information at his fingertips.
Platforms that are not properly organized or are not professionally inclined in accordance with their professions, trades, or vocations are always overtaken and controlled by members with the character and attitudes of honey badgers.
Electronic platforms are supposed to be a place where members are informed/receive good information or put on notice.
While bereavements, ailments, and other unfortunate postings are the traffic of some electronics platforms. More so, some are flooded with all such birthdays—humans and animals. In fact, some members are known for soliciting birthday wishes. Without apology, many are birthday beggars: “I am one today; celebrate with me.”
I pray leadership of platforms that are faced with such viruses should endeavor to make corrections to achieve their objectives.
Balami, Publisher/Columnist. 08036779290
Anatomy of Electronic Platforms: The Honey Badger Attitudes/Character
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