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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
Jos: Living in Conflicts and Crisis for a Quarter of a Century; Where Peace Became a Paranormal Stranger (1)
Jos: Living in Conflicts and Crisis for a Quarter of a Century; Where Peace Became a Paranormal Stranger (1)
By: Balami Lazarus
Imagine a child born in Jos 25 years ago is today an adult by all standards, probably married with a child. And certainly the young man has passed through tense moments, conflicts, and crises that came with hatred, destruction, and killings among the citizens of the state where the lives of the young and the old were not spared.
Looking back with nostalgia when my peers and I were young secondary students in Plato College Sharam, peace was a permanent resident, residing in quietness and recollection when Jos was a melting point of coexistence among the inhabitants in both public and social life. What happened to the question tag?
The Jos conflicts/crisis has suffocated the metropolitan environment over time and space, pollinated by suspicion of ethno-religious and extremist teachings of ideologies in cells carried out by some elements that have created hatred and fear among the people.
Of late, this crisis has turned into terrorist and bandit attacks, claiming more lives than before. And for some residents, including this writer, it is no longer strange nor an item of public discussion in the affairs of some citizens. Because it has been with the people as a paranormal mystery for a quarter of a century (25 years).
However, the loss of lives is the most disturbing central theme in this crisis and/or attacks. Political and economic progress are stagnated; businesses are backstage affairs conducted with fear in a helter-skelter fashion in exchange for goods and services.
The hatchlings of these bloody conflicts and crises have manifested in no-go areas with devastating effects on the intra-micro commercial/corporate business transactions. Rebellion subjects, enemies of peace, have long polarized the city of Jos into ethno-religious and political divides.
The year 2001 was the beginning of Jos’s crisis that has become cyclical these several seasons within the Jos and Bukuru metropolises.
The attitudes of the affected and concerned citizens have illuminated the depths of their feelings, revealing a kaleidoscope of doubts as Nigerians. The Ungwan Rukuba killing spree and the decades of unrest in Jos have raised motions for the identity and reconstruction of the Nigerian state.
To be continued.
Balami, Publisher/Columnist. 08036779290
Jos: Living in Conflicts and Crisis for a Quarter of a Century; Where Peace Became a Paranormal Stranger (1)
Columns
Descendants of Yamtra-Wala: Surfing in the Comfort of the Bura Ethnic Tribe/Cultural Identity
Descendants of Yamtra-Wala: Surfing in the Comfort of the Bura Ethnic Tribe/Cultural Identity
By: Balami Lazarus
I have spoken and written articles on the Bura-Pabir, where I was called names with insults of convex images. I am here once again with nearly the same subject on ethnic tribe/cultural identity: the dilemma of the Pabir group of people who are standing poised between being Pabir or Babur.
The Bura people are an independent ethnic nation historically, geographically, and politically within the Biu territory long before Yamtra-Wala. Is it then wrong for anyone to think and say that the Pabir group of people are the same as the Bura from an ethnic-tribe/historically cultural perspective? What made them the same? How and when did they become the same? Are the Bura people descendants of Yamtra-Wala?
Historically, the Pabir are an extraction of Kanuri/Kanembu through the bloodline of a disgruntled prince, Abdulla, from the Kanem-Borno Empire, who, with his band of 70 men, founded the Biu kingdom and her royal dynasty in or about 1535.
In this work, I will write using Pabir, their original name given to them by the Bura people. I will also raise some thought-provoking questions with the uffti of truth in the space of ethnic tribe/cultural identity.
In history, I was taught to always take note of historical facts and figures and be objective in analyzing historical events/source materials with a sense of reasoning because many histories were falsified through irrational narratives/oral history from one generation to the other.
What is then the rationale behind the Pabir people addressing themselves as Babur? I believed answers to this are rooted in ethno-religious sentiments capped with an inferiority complex in the claws of
Babur. Why are they now forcing themselves on the Bura people’s cultural identity considering the recent development on the yearly Bura Cultural Festival at Marama? And this is the same ethnic tribe many Pabir scorned with contempt.
I was privileged to ask some few individuals from both divides, and what they said on this matter was the plain truth. “The Bura people are the first inhabitants of this territory, people with unique culture, traditions, and customs.” One individual said, “We have to be part of them (Bura) because we are a minority with no ethnic/cultural identity, nor are we an ethnic tribe/nation… They gave us the collective name “Pabir,” not “Babur,” as we are being called and addressed wrongly today.
The distant and recent events have not been in favor of the Bura people. Proponents of the Babur conspiracy theory presumably thought that by being addressed as Babur, they would be given ethnic tribe and cultural identity garments. But has it?
In the context of history, if and when one is speaking or writing for the purpose of ethnic tribe/cultural identity of the Bura people, I believe that such
Submissions shall probably be in favor of the Bura as an independent ethnic nation, unlike the Pabir, who are direct descendants (Yamara-Wala) of Prince Abdulla from Birni Ngarzargamu in the Kanem-Borno Empire.
“I am a Pabir man. Can you point at any cultural source material or genre tied to us as our cultural heritage? And neither are we of common ancestry or lineage with the Bura.”
Let us rewind back, taking into consideration the name Yamtra-Wala, the founder of the royal dynasty of Biu. In the Bura dialect, it is pronounced and spelled as “Yamta Ola.” However, you may wish to know that it has its roots in the Arabic language.
But in an attempt to improvise and starve the term “Pabir,” choking it with “Babur” has further perpetuated historical miscarriage, a clear distortion of history.
What was the position of the Pabir in the ethnic/cultural unity of the Bura people of the Biu territory? Where were they when they had the Bura Almanac of the 1950s, 60s, and 70s titled Bura Community in the following towns and cities like Kaduna, Lagos, Kano, Jos, Enugu, Ibadan, Zaria, and other locations within Nigeria? It is on record that there was absolutely no mention of Pabir in unity with Bura combined as a united community in such places. How then did Pabir get into the ethnic tribe/cultural identity of the Bura people, considering the recent development on the yearly Bura Cultural Festival? Note that these are the same people the Pabir scorned with sentiments of “mission.” However, it still remains the healthy stock where many have reached the sun.
Be as it may, probably they are afraid to be left out individually or collectively in the ethnic identity provided by the Bura people. And to also bask in the comfort of Bura cultural identity and heritage.
Historically, before 1535, there was no such group of people in the Biu territory. Therefore, the band of the 70 led by Prince Abdullah of Birni Ngazargamu in Kanem-Borno does not add up to give the Yamtra descendants the permit to claim ethnic tribe and cultural identity of the Bura people. Archaeological sources around the greater Biu territory like the ancient abandoned settlement sites such as Kumba in old Bwala village. Ghenchabiri in Kwajaffa, among many others in the Hawul Local Government Area, is evidence of the presence of the Bura people before c.1535.
I hereby tie myself with roots of history to say that the Pabir people, who are the descendants of Yamtra-Wala, will find it difficult to disengage and/or isolate themselves from the beautiful Bura ethnic tribe and cultural identity despite sentiments of “mission” because Yamtra-Wala came without cultural identity. For this reason, Pabir or Babur are offshoots of the Bura ethnic tribe and cultural identity because they have an identity of their own.
Similarly, the Bura are the lighthouse of the Biu territory because they are found all over, contributing their quota to nation-building. They also made up the greater part of the Biu territory’s population.
Balami, Publisher/Columnist 08036779290
Descendants of Yamtra-Wala: Surfing in the Comfort of the Bura Ethnic Tribe/Cultural Identity
Columns
IBUAM: 5 Years Comprehensive Academic and Practical Training For Borno Indigenes Courtesy of Babagana Zulum’s Administration
IBUAM: 5 Years Comprehensive Academic and Practical Training For Borno Indigenes Courtesy of Babagana Zulum’s Administration
By: Balami Lazarus
Let me use this space and opportunity to make it clear that News Net Global Limited (NEWSng) Abuja and I are not media consultants to Isaac Balami University of Aeronautics and Management, Lagos (IBUAM). I have to bring this to the fore because some persons are presenting us as her media officers.
I was in Maiduguri recently on assignment for my firm, and during the course of the assignment, I decided to make time to do some independent investigations on the ₦12.9 billion scholarship offered to 54 students, indigenes of Borno State, courtesy of the state government, under the leadership of Governor Babagana Zulum, who believed in the progress and future of Borno State through Isaac Balami University of Aeronautics and Management, Oshodi-Lagos (IBUAM).
The scholarship is meant to educate and empower young students of Borno who meet the necessary requirements to study and be trained both intellectually and practically at IBUAM in various fields of aeronautics engineering and management as future pilots, aircraft/aerospace engineers, and aviation management experts to become future global leaders in the international aviation space (industry) equipped with comprehensive knowledge in modern aviation arts and techniques for the growth and development of Nigeria.
The Zulum administration has thought it wise to give young citizens of Borno State origin these golden opportunities through the State Scholarship Board.
This initiative, however, did not go well with some indigenes of Borno. Reliable sources based on my findings revealed that some members of the state executive council, Borno elders’ forum, among others, were not happy with the scholarship program meant for the 54 IBAUM students of Borno. In fact, before now it was a tug of war that generated a storm of bitter sentiments in a teacup greater than a mug.
In a brief chat with Engr. Isaac Balami, he informed this writer that he appreciates with gratitude the Borno State Government under the able leadership of Governor Babagana Zulum for believing in IBAUM to train its indigenes in the fields of aeronautics engineering and aviation management for the growth and development of the aviation industry in Nigeria and beyond. “IBUAM and I are grateful to my governor, Engr. Babagana Zulum, and those that have contributed to the realization of the scholarship program.”
Let me also state here categorically that scholarship programs are always provided under terms and conditions that are formulated by the offerer, like the case in question. But some individuals in government and other bodies are cogs in the wheel of such progress.
Are you aware that there are characteristics and physical differences between Engr. Isaac David Balami, an individual, and Isaac Balami University of Aeronautics and Management (IBUAM)? In a nutshell, herein are two entities—individual and institutional. But here are some citizens poised and wrapped in ignorance, raising eyebrows on collective future benefits.
The $12.9 billion doled out by the Borno State Government was not given to Engr. Isaac David Balami and shall never be his personal money from this day forward. I believed if and when anyone were to ask about the said money, that individual should go and ask IBUAM, not Engr. Isaac David Balami.
Balami, Publisher/Columnist. 08036779390
IBUAM: 5 Years Comprehensive Academic and Practical Training For Borno Indigenes Courtesy of Babagana Zulum’s Administration
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