Tag: Dangote refinery

The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Felix Omatsola Ogbe has said the Dangote’ 650,000-barrel-per-day Integrated Refinery and Petrochemical Company, would afford Nigeria and other African countries partnership opportunities for sourcing petroleum products and fertiliser. 

He stated this at the ongoing 9th Sub-Saharan African International Petroleum Exhibition and Conference (SAIPEC), in Lagos.

According to Ogbe, similar projects capable of leveraging collaborations included Kenya’s Konza Technology City, Grand Ethiopian Dam, Lekki Free Trade Zone (Lagos), and facilities like the SHI-MCI FPSO Fabrication/Integration Yard, in Lagos.

Others highlighted by the Executive Secretary were NCDMB’s Nigerian Oil and Gas Parks Scheme (NOGAPS) being developed in seven locations in Nigeria, to which he invited interested businessmen and investors seeking to manufacture industry-related equipment, components and spares to apply.

He also highlighted the importance of the African Continental Free Trade Agreement (AfCFTA) as a critical legal framework that could be leveraged to achieve collaborative local content strategy in Africa, given the free trade area it has created by integrating 1.3 billion people across 54 African countries with a combined gross domestic product of over $3 trillion.

Ogbe therefore charged sub-Saharan African nations to keep pace with unfolding trends in the global oil and gas industry and adopt a unified approach in strengthening local content development, advancing industrialisation and fostering sustainable continent-wide economic growth.

In a Keynote Address the Executive Secretary noted that nations like Nigeria, Angola, and Ghana had made notable strides in the local content development by boosting indigenous participation in the oil and gas sector, but expressed the regret that “fragmented implementation continued to hinder collective progress.”

He called for a collaborative strategy among petroleum-producing nations in sub-Saharan Africa that would foster the sharing of best practices and enhance cross-border partnerships that could drive the competitiveness of indigenous players. 

Read Also: Dangote Refinery exports jet fuel to Saudi’s Aramco

In a paper entitled: “Sub-Saharan Africa Local Content Collaboration Strategy,” Ogbe identified harmonisation of local content policies, human capital development, investment in infrastructure, funding for local companies and technology transfer, as key pillars to Africa’s collaboration strategy.

He stressed the need to develop a robust local content framework that positions the region for long-term economic prosperity which could be fostered “through the collaborative efforts of APPO (African Petroleum Producers Organisation) and the United Nations Economic Commission for Africa and the African Union.”

On human capital development, which he described as pivotal to the successful implementation of local content, he said  approximately 60 per cent of Africa’s population was currently under the age of 25, and that this teeming population provided a unique opportunity to fast-track development. “A large, young workforce can drive expansion through increased productivity and expansion,” he noted.

Speaking on funding, Ogbe said aregional fund or financial framework that provides credit facilities, guarantees, and investment incentives would strengthen indigenous firms, noting with satisfaction that an African Energy Bank, established by APPO with the support of the NCDMB, which has taken equity investment in it, is soon to be operational.

In regard to technology transfer and innovation, he said: “Encouraging joint ventures, research collaborations, and technology-sharing agreements among African nations will drive the adoption of cutting-edge solutions and indigenous technological advancements in the African economy.”

The overall strategy he discussed envisaged roles for the academia and research institutions, which must collaborate on industry-driven research, innovations, and skills development.

He said: “By working together, we can create a formidable and self-reliant petroleum sector that delivers long-term benefits for our economies, businesses, and people.”

Earlier, in a Pre-Event Session, the Director, Monitoring and Evaluation of the NCDMB, Abdulmalik Halilu, delivered a paper on “Optimisation of Developed Capacities and Capabilities in Africa for the Growth of African Oil and Gas Industry.”

In the presentation, with illustration from Africa’s Hydrocarbon Map, he discussed Local Content Value Proposition for Africa, Concepts, and Way Forward.

Under Local Content Value Proposition, he highlighted research and technology development, local employment, strategic partnerships, ownership and control of assets, while Supply Chain Optimisation threw light on sustainable operations, increased production and utilisation of locally made goods, and contribution to GDP.

Under Way Forward for Sector-Specific Industrialisation, Halilu charged petroleum-producing countries to “identify and develop niche industries, promote specialisation and value addition, establish export-oriented economic zones.”

For trade and regional integration under AfCFTA, his suggestion was, “Harmonise trade policies and regulations, develop efficient transport and logistics networks, export expansion grant to companies promoting intra-Africa trade.”

Dangote Petroleum Refinery & Petrochemicals has reduced the cost of its diesel product to N1,020 per litre, down from N1,075 per litre at the gantry price.

Since it began diesel production in January 2024, the refinery has reduced the price of diesel more than three times, from an initial N1,700 per litre to the current rate, thus providing much-needed relief to manufacturers and consumers alike.

A  statement explained that it is part of its efforts to better serve its customers and Nigerians in general.

The latest reduction of N55 per litre for diesel follows the revelation by Development Economist and Public Policy Analyst, Prof. Ken Ife, that the Dangote Petroleum Refinery sacrificed over N10 billion to ensure the availability of petrol at a uniform price across the country during the yuletide period. He also praised the refinery for setting a new benchmark in Nigeria’s energy sector by unlocking vast opportunities for export revenue.

Speaking on the transformative impact of the refinery on Arise TV, Prof. Ife explained that for years, the equalisation fund had been responsible for managing the price differentials and transportation costs involved in distributing petroleum across the country. However, it has been reported that the fund owes marketers over N80 billion, according to the development analyst.

“What has actually happened is that the President has shifted the subsidy burden away from the public purse and onto the private sector. The equalisation fund, which was meant to cover the price differential and transportation costs, plays a crucial role. If petroleum is to be sold across the country at a set price, then transportation costs must be accounted for to ensure this is possible. That’s the purpose of equalisation. However, the equalisation fund is reported to owe around N80 billion to the marketers, and this issue is still under discussion.

Read Also: Dangote Refinery exports jet fuel to Saudi’s Aramco

“During the Christmas season, which is traditionally the most challenging period, we often face shortages of petroleum, petrol hoarding, and arbitrary price hikes, all of which impact the cost of food. In response, during this last yuletide, the Dangote Group made the decision to absorb the costs. They equalised the price themselves, at a cost of over N10 billion. In doing so, they effectively absorbed the subsidy,” he said.

Prof Ife also said the facility is steering Nigeria away from its traditional focus on Premium Motor Spirit (PMS) towards a diversified range of petroleum-based exports.

He added that with major international players such as BP and Saudi Aramco purchasing refined products from Nigeria, the country is swiftly becoming a key player in the global petroleum market. The analyst expressed confidence that Nigeria is on the path to self-sufficiency in petroleum products, while simultaneously positioning itself as an energy export powerhouse.

• NESG seeks support for local industries to achieve $1tr economy

Dangote Petroleum Refinery had exported two jet fuel cargoes to Saudi Aramco, the world’s largest oil producer and a leading integrated oil and gas company globally.

Saudi Aramco is majorly state-owned petroleum and is the national oil company of Saudi Arabia.

 President of Dangote Group, Aliko Dangote, made this known during a visit by the Nigerian Economic Summit Group (NESG), team to both Dangote Fertiliser Limited and the Dangote Petroleum Refinery & Petrochemicals in Ibeju Lekki, Lagos.

He said exporting products to the global markets, especially Saudi Aramco, was because of his refinery’s world-class standards and advanced technology.

“We are reaching the ambitious goals we set for ourselves, and I’m pleased to announce that we’ve just sold two cargoes of jet fuel to Saudi Aramco,” he said, adding that since its began in 2024, the refinery has steadily increased its output, reaching 550,000 barrels per day.

While commending Aliko Dangote for establishing the $20 billion refinery – the largest single-train refinery in the world – NESG Chairman, Mr. Niyi Yusuf, stated that Nigeria needs more investments of this calibre to reach its $1 trillion economic goal.

“To achieve a $1 trillion economy, much of that must come from domestic investments. I joked during the bus ride that while others are dredging to create islands for leisure, you’ve dredged 65 million cubic tonnes of sand to create a future for the country.”

Read Also: Dangote Refinery crashes petrol ex-depot price to N890

This refinery, fertiliser plant, petrochemical complex, and supporting infrastructure are monumental,” he said.

“My hope is that God will grant you the strength, courage, and health to realise your ambitions and that in your lifetime, a new Nigeria will emerge.”

Yusuf emphasised that such local industries are essential to Nigeria’s industrialisation and will help foster the growth of Small and Medium Enterprises (SMEs). Adding that NESG would continue to advocate for improved investment climate to attract entrepreneurs, boost development, ensure food security, and address insecurity.

He lamented that Nigeria has become a dumping ground for foreign products, stressing that the country must support its entrepreneurs to become a global player. “It’s inconceivable that a nation of over 230 million people, with an annual birth rate higher than the total population of some countries, is still dependent on imports to feed its citizens.”

Yusuf also praised Dangote’s bold vision for making Nigeria self-sufficient in several key sectors.

“The NESG is grateful, and I believe the nation is as well. This refinery represents the audacity of courage. It takes immense effort to do what you’ve done and still be standing and smiling. Thank you for inspiring us and showing that nothing is impossible. You’ve transformed Nigeria from a net importer of petroleum products to a net exporter,” he said. “We’ve all read Think Big, but this is truly about thinking big. The message is clear: the private sector can bring about real change.”

Yusuf, alongside NESG board members and stakeholders, toured the refinery and fertiliser plants, lauding the level of investment, technology, and sophistication of young Nigerian engineers running world-class laboratories and central control units. He acknowledged Dangote’s perseverance and success in overcoming numerous challenges.

Dangote, in his response, reiterated the importance of the private sector in national development, asserting that Nigeria’s challenges could largely be overcome by providing gainful employment to its people.

He stated that the concept of a free market should not be used as a pretext for continued import dependence, highlighting that both developed and developing nations, including the USA and China, actively protect their domestic industries to safeguard jobs and promote self-sufficiency. Dangote also cited the example of the Benin Republic, where cement imports are restricted as part of a deliberate strategy to protect local industries, despite the proximity of his Ibese plant.

“The President is a personal friend, and my Ibese plant is just 28km from Benin, yet they refuse to allow imports to protect their local industries, most of which are grinding plants,” he remarked.

He further emphasised that the government stands to gain substantially when the private sector flourishes, noting that 52 kobo (52%) of every naira Dangote Cement generates goes to the government.

Dangote also pointed out the significant challenges involved, in setting up industries in Nigeria, particularly the substantial capital investment required due to the lack of infrastructure. He stressed that investors are often forced to take on responsibilities for essential services such as power, roads, and ports – services that should be provided by the government.