Alhaji Aliko Dangote

By Haroon Aremu

Dangote Refinery and the Nigerian National Petroleum Corporation (NNPC), two titans in Nigeria’s oil sector, have become unwitting pawns in a high-stakes game of greed, corruption, and control that threatens forever to alter the landscape of the country’s economy. 

The fallout from this secretive manipulation could send shockwaves across Nigeria and the global oil market. But the question remains: how deep does the corruption run, and who pulls the strings?

As Nigerians struggle with fuel scarcity and skyrocketing prices, a disturbing reality emerges—those tasked with managing the nation’s resources deliberately keep refineries inoperative, creating bottlenecks to enrich themselves. At the heart of this heist lies an even more sinister story: a calculated move by a select few to dominate and monopolise Nigeria’s oil industry by manipulating state-owned enterprises and private ventures like Dangote’s Refinery.

Is the NNPC’s Shady $2.76 Billion Stake in Dangote Refinery a marriage of convenience?

In 2021, when the NNPC acquired a 20% stake in Dangote Refinery for a staggering $2.76 billion, many believed it was a monumental step towards bolstering Nigeria’s refining capacity. But beneath the surface, critics questioned the logic of the government investing public funds into a private venture while neglecting its decrepit refineries, which had been left to rot due to years of corruption and mismanagement. 

Was this a genuine attempt to revive the oil sector or a well-disguised ploy to channel public funds into private pockets? The decision becomes even more dubious when you consider that NNPC’s refineries have been operating at less than 20% capacity for years despite repeated promises of rehabilitation. 

These non-functioning facilities force the nation to import most of its fuel, which conveniently benefits the very cabals that control the import contracts. As these refineries remain dormant, Dangote’s refinery, with its projected 650,000 barrels per day capacity, is positioned to monopolise the market once it becomes fully operational. 

Was the NNPC’s investment a masterstroke of collusion to further empower this monopoly? I wonder if Dangote’s unholy alliance with the government is a favouritism or Strategic Investment.

Aliko Dangote’s influence in Nigeria’s political sphere is well-known. His ability to secure favourable policies has long raised eyebrows. Many believe his success is due as much to his business acumen as his close ties with top government officials. Recent import restrictions, for instance, have practically handed the domestic market to Dangote.

Dangote Refinery’s development, delayed since its original 2016 completion date, has ballooned in cost from $9 billion to over $19 billion. Was this financial mismanagement, or were there deeper, darker forces at play—possibly designed to funnel excess funds into the hands of corrupt officials?

As the cabal’s grip tightens, their influence on oil prices becomes increasingly evident. Dangote’s market dominance will give him unprecedented pricing power. But with such control comes the risk of manipulation. 

The refinery’s vast production capacity could easily be used as leverage to influence oil prices, both domestically and internationally. Many fear prices will be artificially inflated, maximising Dangote’s profits while further squeezing Nigerian consumers.

This scenario becomes even more plausible given the NNPC’s deep involvement in the refinery. With its 20% equity stake, NNPC’s role in pricing decisions cannot be overlooked. Will this be another case of public officials prioritising their private interests at the expense of national development?

As domestic pressures mount and whispers of foreign market dominance grow louder, one question looms: will Dangote begin prioritising foreign buyers over Nigeria’s fuel needs? 

With access to international markets offering better returns and more stable pricing, there is growing concern that the refinery may abandon the local market in favour of more lucrative exports. This could leave the country in an ironic situation, producing refined oil but still unable to meet domestic fuel needs, leading to ongoing scarcity and high prices despite local production.

If the cabals continue manipulating the domestic oil market, forcing prices to unsustainable levels, Dangote might have little choice but to look beyond Nigeria’s borders. 

The timing of the refinery’s commencement raises even more questions. As Nigeria grapples with the controversial removal of its long-standing fuel subsidy, many speculate that this policy shift is designed to align with the Dangote Refinery’s launch. With subsidies removed, domestic fuel prices are expected to skyrocket, conveniently paving the way for Dangote to step in as the dominant player, reaping the rewards of higher prices.

While the government frames subsidy removal as a necessary economic reform, many Nigerians view it as another instance of policies being shaped to benefit the few at the expense of the many. The alignment of these policies with the refinery’s launch timeline is too coincidental to be ignored.

The potential for Dangote’s monopoly to distort the Nigerian oil market. With NNPC’s refineries effectively sidelined and the cabals controlling much of the nation’s oil wealth, Dangote stands poised to dominate every facet of the industry—from refining to distribution. However, monopolies rarely benefit consumers, particularly in essential industries like oil.

As Nigeria’s oil sector hangs in the balance, powerful forces are clearly at play. The cabals’ influence, Dangote’s political connections, and NNPC’s complicity have all converged to create a complex web of corruption, exploitation, and control. 

Will Nigeria’s oil wealth finally be harnessed for the benefit of its people, or will the cabals and monopolies continue to enrich themselves at the expense of the masses? 

One thing remains certain: the truth behind the Dangote Refinery’s rise and NNPC’s role in it could be the bombshell that blows the lid off one of Nigeria’s biggest corruption scandals yet.

Haroon Aremu is a passionate writer and Mass Communication graduate, currently serving as an NYSC member. With a focus on national development, he is keen on leveraging his expertise to drive positive change and welcomes opportunities in public policy, media, and development sectors. He wrote in via exponentumera@gmail.com.

By Uzair Adam

The Dangote Refinery, with a capacity of 650,000 barrels per day, has begun producing petrol.

The announcement was made on Tuesday by Alhaji Aliko Dangote, the refinery’s Chief Executive Officer, while addressing journalists about this significant milestone.

The $20 billion refinery, built by billionaire businessman Aliko Dangote, commenced operations in January, initially focusing on the production of diesel and aviation fuel.

Further details are expected shortly.

By Zayyad I. Muhammad 

Petrol and electricity are the oxygen of any nation. Once these two crucial resources are restricted, the country struggles to breathe. Many Nigerians were surprised to learn that Nigeria’s petroleum importation from Malta surged significantly to $2.8 billion in 2023, up from zero importation between 2017 and 2022. 

On the other hand, the majority of Nigerians were unhappy with the news that the $19 billion Dangote Refinery is struggling due to a poor supply of crude oil and other hindrances from government agencies that are supposed to support such a national asset.

For most Nigerians, Dangote Refinery represents hope and the expectation of lower petroleum prices. Regardless of people’s opinions about Dangote, he has accomplished what Nigeria has failed to achieve in decades. In fact, in the last ten years, only six countries in the world have managed to build new massive petroleum refineries, including the Dangote Refinery. 

Other countries that have built refineries include China, which has added multiple new refineries like the 400,000 barrels per day (b/d) Yulong Petrochemical Plant and the 300,000 b/d Shenghong Refinery; Kuwait’s Al-Zour refinery with a capacity of 615,000 b/d, which started operations in 2021; Saudi Arabia’s Jazan refinery with a capacity of 400,000 b/d, also operational since 2021; and Oman’s Duqm Refinery, with a capacity of 230,000 b/d, which commenced operations in 2022. Additionally, India has expanded its refining capacity with new units at the Ratnagiri refinery.

Nigeria’s importation of petroleum products was initially intended as a temporary solution to the insufficient supply from its four state-owned refineries. However, due to inefficiency and corruption, this temporary measure has become a permanent solution.

In Nigeria, the prices of refined petroleum products are heavily influenced by import-related factors. There are over ten components contributing to the landing cost of petrol, including freight, port charges, the NMDPRA 1% levy, storage costs, marine insurance, fendering, the NMDPRA COQ and NOA, Q&Q analysis, letter of credit fees, and interest. Additionally, the high exchange rate further inflates the price of imported petrol. To eliminate these extra costs, local refining is the only viable solution. Nigeria’s only option for now is the Dangote refinery.

Many Nigerians, ordinary citizens, and bureaucrats view the $19 billion Dangote refinery as an asset and a blessing. It has the potential to liberate Nigeria from decades of dependence on petrol importation, which is one of the major causes of pressure on the Naira and the scarcity of the dollar. The refinery will position Nigeria on the map of nations exporting crude and refined petroleum products and fertiliser. 

Dangote Fertiliser is one of the largest fertiliser plants in the world, with an annual production capacity of 3 million metric tonnes of urea. Nigeria’s yearly urea fertiliser needs are only 1.5 million metric tonnes. 

Dangote has already demonstrated his capability in the cement industry. With Dangote Cement, Nigeria is a net exporter. Nigeria boasts one of the largest cement industries in Africa, with a combined production capacity of over 58.9 million metric tonnes per year among major producers. It leads the cement industry in West Africa, hosting at least 12 registered companies. Dangote Cement is the largest producer in Nigeria and West Africa, contributing over 35.25 million metric tonnes per year (Mt/yr) to the region’s cement capacity. Due to Dangote’s significant cement production capacity, Nigeria satisfies not only its domestic cement needs but also exports to neighbouring countries, enhancing regional trade and economic integration.

Let the Dangote refinery be! It will transform the Nigerian oil and gas industry into a net exporter of refined petroleum products.

Zayyad I. Muhammad writes from Abuja via zaymohd@yahoo.com.

By Muhammadu Sabiu

Bill Gates, the co-founder of Microsoft, and Aliko Dangote, the head of the Dangote Group, met with President Bola Tinubu on Monday at the Presidential Villa, Abuja.

Dayo Olusegun, Tinubu’s media assistant, tweeted about the meeting.

According to Olusegun: “Mr @BillGates, co-chair of the Bill and Melinda Gates Foundation and founder of Microsoft, has arrived the Presidential Villa with Alhaji @Aliko Dangote to see President Bola Ahmed Tinubu (GCFR).”

Recall that Dangote revealed last week that Tinubu and Gates would have a meeting today.

By Zayyad I. Muhammad

One entity that will benefit most from the Petroleum Industry Act (PIA ) is Aliko Dangote, with his 650,000 barrels per day integrated refinery, which is Africa’s biggest and the world’s biggest single-train facility. The refinery has 1,100 kilometres of pipeline to handle three billion Standard Cubic feet of gas per day. In addition, it has power plants with a combined capacity of about 400MW.

Section 317 (8) of the Senate version of the PIA noted that petrol importation license would be restricted “only to companies with active local refining licenses”. This clause and the unmatched prowess occasioned by the refinery is a formidable edge for Dangote. However, some report state that the federal government has reversed these exclusive petrol importation rights.

Dangote can have absolute control of the petroleum industry’s downstream and midstream sectors. How? Dangote can acquire the numerous idle fuel stations scattered nationwide or take over one of the established major retail marketers, though most idle stations are not strategically located. However, Dangote can revive and utilise them using the price advantage- by setting an unbeatable price, and a litre is a litre strategy, employing the best domestic workforce in the downstream sector and optimising modern technology for service delivery in these stations.

The petroleum retail industry is growing in Nigeria. The growing number of fuel stations across corners of the country is proof of this. But operational and logistical gaps remain in the blooming industry, like bad roads coupled with the use of old trucks, poor remuneration of drivers, and lack of modern technology. Thus the industry is losing billions of Naira due to shortages when truck discharge petroleum products at fuel stations and the rising disputes between drivers and station managers.

Furthermore, some marketers have poor welfare systems for staff and have not put in place some feasible plans for the realities that will accompany the arrival of the Dangote Refinery in the PIA regime. As a result, many of them may end up operating in the dark. For any marketer to survive the new regime, they must set up a strong think-tank or a special unit in their R&D departments to ‘look’ at the future, opportunities and threats and opportunities that Dangote Refinery will come with.

With his current economic capacity, Dangote can exploit oblivious lapses to implement backward integration in the petroleum industry. The $100 million Dangote-Sinotruck plant in Lagos will give Dangote an advantage in the logistics and operations sector. The plant assembles trucks and cars in Nigeria for local use and export; it is 65 per cent owned by Dangote and 35 per cent by Sinotruck. Therefore, having new petroleum distribution trucks and well-trained and well-paid drivers will not be difficult for Dangote.

The Dangote Refinery will give him the required volume of products and enough loading bay for trucks to load. The refinery covers 2,635 hectares of land, six times the size of Victoria Island, Lagos. Scarcity will not be challenging for Dangote if he ventures into retail. Dangote can tap the domestic workforce to employ the best hands in the downstream sector. With access to funding and resources, Dangote can deploy massive Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) skids at once in as many stations as possible to also prepare for the future.

As mentioned, if Dangote acquires these thousands of idle fuel stations or any of the established major marketers, the brand can offer mouth-watering prices at these stations, making customers travel even 5km just to purchase petroleum products at a Dangote station. Furthermore, these prices can knock many competitors out of the market. However, some of them can still survive as third-party partners to Dangote. However, the NNPC can take advantage of its $2.76 billion stake in the Dangote Refinery and boast its retail business.

With this colossal refinery, Dangote has the advantage in the midstream and downstream of the oil and oil gas industry. Anyone coming in will need the next ten years to catch up. The bigger, the more advantageous, it seems!

Zayyad I. Muhammad writes from Abuja via zaymohd@yahoo.mom.

By Ahmad Deedat Zakari

Barely seven days before the expiration of his final tenure, President Muhammadu Buhari launched the long-awaited Dangote Refinery in Lagos. The newly commissioned refinery is the first private-owned oil refinery in Nigeria. 

The President was flanked by many dignitaries from within and outside Nigeria during the unveiling. He described the refinery as a ‘game changer’ for the country’s economy. 

“This clearly makes this event a notable milestone for our economy and a game changer for the downstream petroleum product market not only in Nigeria but the entire African continent,” He said.

The accomplished businessman and owner of the refinery, Alhaji Aliko Dangote, gave the welcome remark at the unveiling ceremony.

He thanked President Muhammadu Buhari for his support and said he was his source of inspiration at times he felt like giving up. 

He also appreciated the Governor of the Central Bank of Nigeria, Godwin Emefiele, for ‘moving mountains’ in the course of the project. 

The billionaire also revealed that the first product of the $12 billion facility “will be in the market before the end of July, beginning of August this year”.

“Beyond today’s ceremony, our first goal is to ramp up production of the various products to ensure that within this year, we’re able to fully satisfy our nation’s demand for higher quality products,” he said.

The Dangote Petroleum Refinery and Petrochemical is the largest single-train refinery in the world and has a capacity of 650,0000 capacity a day.

By Sulaiman Maijama’a

Almajiri System, over the last few years, has come under intense pressure, greeted with mixed reactions by stakeholders, especially in northern Nigeria. Many people have written many pieces on the negative consequences of the system, ascribing it to be one of the underlying causes of poverty, hunger, and insecurity, among other social vices in northern Nigeria. For this reason, it has been a topic of debate. Some call for repositioning the system, and some agitate for its total abolishment. In contrast, others argue that it should remain as it is today.

Undoubtedly, the present-day Almajiri system is, to a greater extent, different from what was obtainable in the pre-colonial era, hence the need for a review. Before British colonisation, the system, aside from the authorities’  high recognition and promotion, had enjoyed the support of other major stakeholders, such as the community, the parents and the pupils. So also, the whole financial burden of the system was being taken by the authorities with public funds. These indicate that the Almajiri system in those days was somewhat formal and, therefore, more organised.

However, the magnitude of the attack the system has now come under has given it a distorted image. It has developed a stereotype in some people, so much so that on the mention of the word “Almajiri”, the first connotation that comes to mind is negativity – illiteracy, poverty, hunger, dishonesty, insecurity and all sorts of social vices.

The word “Almajiri” is a derivative of an Arabic word, “Al muhajirun”, which could be traced right from the migration of Prophet Muhammad (peace be upon him) from Makka to Madina. Those who migrated with the prophet to Madina were called ‘Al-Muhajirrun’, meaning migrants. In Nigeria, the word “Almajiri” refers to those, usually teenagers, who are sent by their parents from respective villages and settlements to urban centres in the quest for Qur’an knowledge.

2014 UNICEF report estimated the number of Almajiri conservatively to be 9.5 million in Nigeria, predominantly in the northern part. If all of them were a nuisance, as widely believed by some people, the situation of our region would be worse than we could imagine. 

There is no doubt that there are bad eggs among them, which applies to every category of people. But, as much as bad eggs, there are equally good ones among the Almajiris who have passed through the system and become successful in different facets of life.

Almajiris excelled

Adamu Garba, a former Nigerian presidential aspirant, in an interview with the Punch Newspaper, says the Almajiri system in northern Nigeria produced some of the wealthiest men, including Africa’s pride, Aliko Dangote and the founder of BUA Group, Abdul Samad Rabiu, amongst others. Garba said he was once an Almajiri before he acquired Western education.

When asked whether the Almajiri system promotes terrorism, Garba said Boko Haram has no connection with the Almajiri system because of the dichotomy between Islamic denominations in northern Nigeria. “So, it is very unlikely that you have an Almajiri man becoming a Boko Haram,” he told The Punch.

Garba also mentioned that many business giants are products of the Almajiri system. “Again, if you go to [the] Kano market, most of the rich people in the market are Almajiri. They came through Almajiri, they were able to get [the] necessary training in the Almajiri institutions, and they were able to get to where they are.”

Similarly, several renowned Islamic scholars were once Almajiris. A typical example is Sheik Muhammad Bin-Uthman.

Testimonies from people

Some people interviewed narrated how their encounters with some Almajiri lefts them with a memorable impression.

Abdullahi Muhammad, a resident of Kobi, an Almajiri-dominated area in Bauchi, narrated how an Almajiri once returned his valuable lost items.

“I once forgot my valuable properties around my house. I gave up finding them, but to my surprise, an Almajiri found and returned them to a nearby mosque. It was announced after a couple of days. I claimed ownership and recovered my items intact. I was surprised [at] how honest the boy was.”

In an interview, Aisha Abubakar, a housewife in the Kobi area in Bauchi, revealed that she had two little Almajis coming to help her with housework.

“Two little Almajis come daily to help me with some housework — they fetch me water, wash clothes, and sometimes I send them on an errand. I give them food and sew them clothing when they go home during holidays. For the past two years, they have been coming. They are honest”, she said.

Maryam Abdullahi, another housewife in the Gwallaga area, Bauchi, said she retained an Almajiri who, apart from helping her with housework, teaches her little children Arabic alphabets.

“I have an Almajiri that comes on Thursdays and Fridays to give Qur’an lessons to my children. I’m happy now that my children are good in the Arabic alphabet and Qur’an recitation, courtesy of the lesson they receive from this boy ( the Almajiri). I cannot thank him enough.”

When asked how honest and disciplined she finds the Almajiri, she said, “I send him uncountable times with money to buy foodstuff and other items, and I always find him unblemished.”

Murtala Aminu (Ɗankasuwa), a trader in an Almajiri-dominated area, when asked how he finds the Almajiris around him, he asserted that their stay in the area is a blessing.

“They recite the Qur’an every blessed day and night. This gives us tranquillity and peace of mind. In addition, we cite them as an example for our children to emulate their hard work searching for knowledge. Many of them memorised the Qur’an by heart. What could be more delightful?”.

We take good care of Almajiris under our watch — Almajiri teachers

When interviewed, some Almajiri teachers revealed to us how they strictly manage the Almajiris under their tutelage to be well brought up and face the realities of life early.

Mallam Muhammad Shafi’u Inuwa, an Almajiri teacher in Sabon Gida Tsangaya school, said, “under our school, we have about a  hundred Almajiris. We raise them early in the morning to take classes between 5:00 am and 10:00 pm. In the afternoon, we allow them to work to earn a living. At night, between 8:00 pm and 10:00 pm, is also time for classes. We ensure that all the Almajiris return to their apartments when it is time for sleeping.”

On his part, Mallam Khamisu Ali (Gwani), another Almajiri teacher, said, “we try in this Tsangaya (Almajiri school) to imbue in them (the Almajiris) the spirit of hard work. Moreover, we encourage them to be self-reliant because to work and earn a living is better than to beg; that is why we allow them on school-free days (Thursdays and Fridays) to acquire skills.”

When asked whether the parents of the Almajiris come to check on their wards, Mallam Gwani said, “we are in contact with their parents. We face some challenges regarding this, but plans are underway to make it necessary for every parent to come in person and check on their wards at certain intervals.”

Regarding learning efficiency, Mallam Gwani stated that they had produced brilliant reciters, some of whom memorised the Qur’an by heart as teenagers.

Some Almajiris do not beg nor chant for food

In their efforts to face the realities of life and actualise self-reliance, some Almajiris interviewed claimed to have never begged nor gone to houses chanting for food

In this interview, a teen Almajiri, Zaharadden  Manu, explained how he sustains his life by harnessing and utilising the skill he learned back home before he was taken to Almajiranci.

“Every day after school hours, I go around nearby communities to do shoe shining, and it earns me a living. Then, on Thursdays and Fridays, I fetch water to housewives for food or money”, he said.

Musa Aliyu is an ambitious Almajiri who reconciles Qur’an learning and hand work. When asked where he sees himself in the decade, he said, “I see myself in the future as an educated person and a business owner with employees under me. I pursue this dream to the best of my ability.”

It was observed that on school-free days, markets and commercial centres get populated with Almajiris who do different works to earn some money to live on.

Give Almajiris the atmosphere to harness their full potential – Educationist

Comrade Abdullahi Yalwa, an educationist lecturer with the Department of Crimes Management and Control, Abubakar Tatari Ali Polytechnic, Bauchi, opined, “I think that abolishing the system may not be realistic or so easily achieved. What should be done is to review and revise to align with realities. There is a correlation between nature and nurture, and the two must synchronise to give an effective and responsible person. If one is bound to succeed if given a better condition, he would be double or triple or would be in the book of record for the exceptional display of talent.”

Comrade Yalwa further said, “to maximise the benefits and reduce or eliminate the negative effects of the system. Parents need to be responsible by sponsoring their children when searching for knowledge. They should give them enough resources to manage themselves, visit them periodically, give them what they need in terms of their basic need and also appreciate the person taking care of them in order not for him to use them as slaves.”

On what the government and relevant authorities should do, Comrade Yalwa recommended that “the Almajiri teachers ought to be registered by the government, and a maximum number of students should be allotted to each, and they should have the basic necessities, especially accommodation facilities, where people have a responsible and decent life.”

Maijama’a is a student at the Faculty of Communication, Bayero University, Kano and wrote via  sulaimanmaija@gmail.com.

By Muhammad Sabiu