Dangote refinery

By Oladoja M.O

 There is a sickness far graver than malaria, deeper than cancer, and deadlier than an undiagnosed pandemic: it is the sickness of perception. A tragic, self-inflicted malaise where men and women, intoxicated by their bitterness, misread the vital signs of a nation and call it death. 

Nigeria, that African giant, that phoenix that has refused to be buried by dust or drowned by storms, stands misdiagnosed not by its enemies, but by its sons and daughters. They call for good governance, a sacred right, yet in the same breath, they auction the dignity of their fatherland for applause from foreign balconies. Climbing the stages of international conferences not as ambassadors of hope, but as broadcasters of decay, believing that to light their ambitions, the whole house must first be burned.

Yes, there are wounds, visible scars of leadership missteps and bureaucratic fatigue. Yes, the body occasionally limps, gasping for cleaner governance, for a fresher breath of accountability. But to declare her terminally ill? To parade her on global platforms like a festering corpse before she has even sneezed her last? This is malpractice of the highest order.

And yet, even as they wail, Nigeria births victories so luminous they should blind the eyes of every doubter.

In 2024, while cynics sharpened their tongues, Nigeria quietly pulled off the Dangote Refinery miracle. The largest single-train refinery in human history roared into operation. Built on African soil, by African hands, it shattered the historic curse of crude export dependency. Now, Nigeria refines for itself, and soon, for much of Africa. That is not a dying breath. That is the heartbeat of an empire in rebirth.

Even as global markets shook and economies shrank, Nigeria executed one of the most daring economic surgeries in modern African history: unifying its foreign exchange market in 2023, consolidating multiple exchange rates into a single one. The International Monetary Fund, the World Bank, and even the Wall Street Journal stood still in reluctant applause. The Nigerian naira, which was once battered by artificial valuations, finally had its freedom to fight fair. It stumbled at first, as all warriors do. However, today, stabilisation is becoming a new reality, not a distant hope.

In health, the same nation that armchair critics mock has scored historic breakthroughs. Under the leadership of Professor Muhammad Ali Pate, Nigeria has launched one of the world’s first national rollouts of the Oxford R21 malaria vaccine, a game-changing move in a country that accounts for the highest malaria deaths globally. 

Again, Nigeria has turned pain into policy. The federal government, under this administration, declared a Health Sector Renewal Compact in late 2023 (PVAC), marshalling partnerships with global giants like the World Bank and Bill and Melinda Gates Foundation, channelling billions into revamping healthcare delivery, local vaccine production, and training health workers at an unprecedented scale. No more is health an afterthought; it is now a frontline battle Nigeria is visibly winning. While others talk, Nigeria saves lives. While others point fingers, Nigeria vaccinates its future. 

Infrastructure? While “first-world” cities debate electric railways, Nigeria’s megacity, Lagos, launched its Blue Line Rail in late 2023, the country’s first electric-powered intra-city rail system. A steel artery now pulsing through a once-choked metropolis, easing congestion, breathing new possibilities. In Kano, Rivers, Abuja, and Ebonyi States, massive roads, bridges, airports, and industrial parks rose from the dust — monuments to silent nation-building.

Policy? Courageous policies thundered through governance corridors: the subsidy removal in 2023, ending decades-old economic black hole that bled over $10 billion annually. In its place: strategic investments in health insurance for the vulnerable, transport subsidies for the poorest, and agricultural revolution initiatives. The world’s harshest critics acknowledged it, but the nation’s sons spat on it, too drunk on their self-righteous venom.

In education? Nigeria has ripped the old rulebook. In 2023, the Student Loan Act was signed into law—an audacious leap toward democratising education. For the first time, children of farmers, traders, and artisans now have a gateway into universities, polytechnics, and colleges of education without fear of crushing tuition fees. 

As of 2024, the first batch of beneficiaries has received their loans under the Nigerian Education Loan Fund (NELFUND), breathing hope into homes where education once felt like a broken dream. Now, a total of 525,936 students have registered on the loan platform, with 445,015 applicants successfully applying for financial assistance, representing an 84% success rate for student loan applications under the scheme.

Meanwhile, the accreditation of degrees has also been digitised, with Nigeria becoming the first in Africa to automate this critical gatekeeping process fully. New private universities have sprouted like fresh shoots, expanding access and excellence, whilst Nigerian universities are climbing global ranks. 

They call for “change” yet campaign on the ruins of hope itself. They drape themselves in victimhood, seeking pity instead of respect. The so-called “obedient” torch-bearers, the tribe of Peter Obi, shout of patriotism while waltzing through global forums, slandering their homeland, reducing Nigeria, a giant stirring from slumber to the caricature of a failed state, just to score a few cheap political points.

Calling out leadership is democracy; Denigrating your nation is betrayal.

One builds; the other burns.

Nigeria does not need saviours who love her only when she shines. She needs sons and daughters who hold the line when the storms rage, who sing her greatness even when she falters, who plant seeds of hope, not thorns of despair, into her soil.

To those who mistake criticism for patriotism, remember:

The world does not respect nations that cannot respect themselves.

Call out your leaders.

Demand reform.

March for justice.

But never sell your mother for the price of your pride.

Because when the dust of time settles, and history opens her immortal ledger, it will not be your complaints she remembers, it will be your loyalty.

Oladoja M.O writes from Abuja and can be reached via mayokunmark@gmail.com.

By Muhsin Ibrahim

The Nigerian National Petroleum Company (NNPC) Ltd has rejected allegations from a viral video suggesting that its fuel products are substandard. NNPC called the claims false and based on unverified amateur research.

The company stressed that its fuel is formulated for optimal performance and that a significant portion of Premium Motor Spirit (PMS) sold in Lagos is sourced from the Dangote Refinery, which meets strict quality standards.

NNPC described the video’s spreading as a tactic by “economic saboteurs” to misinform the public and harm its reputation.

The company plans to take legal action against those disseminating false information and urges Nigerians to rely on verified sources for accurate updates.

By Uzair Adam

Major oil marketers across Nigeria have increased the price of Premium Motor Spirit (PMS), commonly known as petrol, from N1,010 to N1,050 per litre.

The Daily Reality gathered that the 4% increase is primarily noted in Lagos and nearby areas.

Meanwhile, independent marketers are adjusting their prices to range between N1,100 and N1,200 per litre, varying by location.

The recent hike reflects Nigeria’s deregulated oil market, where petrol prices are no longer fixed. Due to this flexibility, filling stations across the country show slight price differences, though some stations maintain similar rates.

Industry insiders say the adjustments are linked to the anticipated supply shift to the Dangote Refinery, which oil marketers expect will streamline distribution and potentially impact future prices.

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 Usman Muhammad Salihu,

In Nigeria, fluctuating petrol prices have long been a source of frustration for citizens. It’s not just about the financial strain—it impacts daily life, from commuting to work to powering homes. The government faces immense challenges, balancing affordable fuel prices with foreign exchange rate volatility and maintaining a sustainable oil and gas sector. Add the country’s reliance on imported fuel, infrastructure problems, and unpredictable global oil prices, and you have a perfect storm.

The government’s communication around petrol price changes often lacks clarity and consistency, confusing and mistrusting the public. People ask, “What’s going on?” and “Why should we care?”

The Transparency Issue

A significant problem is the lack of transparency in how fuel prices are determined. The government’s lack of clear communication feeds uncertainty and speculation. This situation can be improved by regularly sharing detailed and transparent information regarding the factors influencing petrol prices. 

Nigerians need access to crucial data such as fuel import reports, pricing mechanisms, and subsidy allocations. Making this information publicly available would help build trust and reduce the growing mistrust surrounding petrol price changes.

Collaborative Stakeholder Engagement

The government must also open lines of communication with industry leaders, labour unions, and civil society organisations. These groups have a direct stake in how petrol pricing impacts the broader economy and everyday life.

Engaging these stakeholders in meaningful dialogue can help align expectations, address concerns, and prevent misunderstandings. This collaboration can reduce the public unrest often triggered by abrupt price hikes. Building consensus among all stakeholders can also create a more stable economic environment regarding petrol prices.

Establishing a Predictable Pricing Framework

One of the most critical steps the government can take is establishing a clear, stable, and predictable framework for setting petrol prices. Currently, changes in fuel prices often come as sudden shocks, leaving citizens and businesses unprepared. A transparent pricing model communicated in advance would help mitigate this uncertainty and reduce panic.

When people know what to expect and when they can make better financial plans and avoid the anxiety associated with sudden price hikes. This predictability would benefit individuals and businesses, as they could better manage their operational costs tied to fuel expenses.

Educating the Public on Petrol Pricing

Many Nigerians are unaware of the factors that influence petrol prices, such as fluctuations in the global oil market and government interventions to manage these costs. This knowledge gap contributes to the public’s frustration and misunderstanding.

Launching public education campaigns to explain the variables behind petrol pricing can help citizens make more informed decisions. Using various media platforms to deliver this information in simple, accessible language will foster better understanding and reduce confusion. It’s not just about explaining why prices fluctuate—it’s about empowering Nigerians with knowledge.

Reducing Reliance on Imported Fuel

Nigeria’s reliance on imported fuel is critical to its petrol price volatility. Exploring alternative energy sources and boosting local refining capacity are essential to reducing this dependence. Investment in local refineries, for instance, would not only lessen the country’s reliance on imports but also create jobs and foster economic growth.

Additionally, encouraging fuel efficiency initiatives can help Nigerians reduce fuel consumption. Simple practices like carpooling or using public transportation more frequently could significantly reduce fuel demand, ease supply pressure, and ultimately stabilise prices.

Investing in Alternative Energy Solutions

Another long-term solution is to explore and invest in alternative energy sources. By diversifying the country’s energy portfolio, Nigeria can reduce its dependence on petrol and mitigate the impact of global oil price fluctuations.

Renewable energy sources such as solar, wind, and hydropower could provide sustainable alternatives to petrol. While transitioning to these energy sources will take time and investment, the long-term benefits include energy security, reduced pollution, and job creation in the renewable energy sector.

Building Trust through Human-Centered Communication

Managing petrol pump prices is no easy task, but the government can ease the burden through a more human-centred approach to communication. By addressing citizens’ concerns in a relatable and transparent way, the government can foster trust and reduce the uncertainty often accompanying price changes.

This communication must be consistent and delivered across multiple channels to reach all Nigerians, from urban centres to rural areas. Regular updates, accessible language, and relatable messaging will go a long way in alleviating public frustration.

The Path Forward: A Collaborative Effort

Managing petrol prices in Nigeria is a complex but surmountable challenge. The process can become more manageable with clear, transparent communication and collaboration between the government, industry leaders, and the public. The government can create a more stable economic environment by taking a holistic approach, including educating the public, establishing a predictable pricing framework, and investing in alternative energy solutions.

The complexities of petrol pump price management require collective action. As Nigerians, we must engage with the process, hold the government accountable, and support initiatives that promote transparency and sustainability. Only by working together can we navigate the complexities of petrol pricing and ensure a better future for all.

Conclusion

Petrol pricing is a critical issue in Nigeria, impacting not just individual livelihoods but the broader economy. The government’s current approach, characterised by a lack of transparency and sudden price shifts, contributes to public mistrust and instability. However, by adopting a more transparent, predictable, and inclusive strategy, the government can build trust and create a more stable environment for all Nigerians. Investing in alternative energy sources and educating the public about the factors influencing petrol prices are essential steps in this process.

Managing petrol prices may be a tough job, but it can be made easier with the right approach. Through collaboration, transparency, and innovation, Nigeria can tackle this issue head-on, fostering economic growth and improving the quality of life for its citizens.

Usman Muhammad Salihu is a PRNigeria Young Communication Fellowship 2024 fellow and wrote via muhammadu5363@gmail.com.

By Kabir Fagge Ali

Nigeria’s oil industry was recently thrown into chaos following disputes that erupted between Farouk Ahmed, the Chief Executive Officer (CEO) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and Aliko Dangote, President of the Dangote Group when the former accused the Dangote Refinery of producing substandard diesel and operating without proper licensing.

As stated by the NMDPRA, the diesel from Dangote’s refinery contained unsafe levels of sulfur, suggesting it was inferior to imported products. In response, Dangote countered these claims by presenting laboratory tests proving his diesel’s superior quality and compliance with international standards.

Dangote emphasised that the NMDPRA had previously accredited his refinery’s in-house laboratory, which added credibility to his defence—going ahead to criticise the reliability of the NMDPRA’s testing methods and called for an investigation into the standards of fuel testing laboratories in Nigeria.

During a visit by leaders from the House of Representatives, Dangote demonstrated the refinery’s production capacities and dismissed allegations of receiving special incentives. Industry analysts confirmed that although the refinery is in the pre-commissioning stage, it is already producing fuel.

This controversy brings to light critical issues surrounding energy security, monopoly, and the potential benefits to Nigeria’s economy as we understand the importance of energy security to national economic stability and development.

For Nigeria, the most populous country in Africa, ensuring energy security is essential for economic growth, industrialisation, and the overall well-being of its citizens. Recent changes, such as removing fuel subsidies, have underlined the importance of a robust and reliable energy sector.

Energy security can be viewed through both long-term and short-term lenses. Long-term energy security involves investments that support sustainable economic development and environmental needs. Short-term energy security focuses on the immediate availability and affordability of energy.

It is often noted that energy security encompasses availability (geological), accessibility (geopolitical), affordability (economic), and acceptability (environmental and social) considerations. These address concerns related to the depletion of fossil fuel reserves and environmental impacts.

The Dangote Refinery represents a significant step towards improving Nigeria’s energy security. By reducing the country’s reliance on imported refined products, the refinery aims to enhance energy independence and stability. This shift is expected to alleviate some economic burdens, particularly in light of recent subsidy removals, as I mentioned before, that have led to increased fuel prices and higher costs of goods.

However, there are concerns about monopoly and regulatory oversight. Under President Bola Ahmed Tinubu, the Nigerian government deserves a commendation for collaborating with the Dangote Refinery to address these challenges. Nevertheless, the government and the Dangote Group must work together to ensure that the benefits of this refinery extend to Nigerian citizens.

The Government should ensure that this collaboration includes fair pricing agreements and transparent operations, ensuring that the refinery’s products are affordable and accessible to the populace. According to the National Bureau of Statistics, the removal of the subsidy has led to a decline in economic growth, with the country’s GDP contracting by 1.92% in the first quarter of 2023.

The Dangote refinery is a welcome development for Nigeria’s energy security. The refinery, which is expected to be one of the largest in Africa, will have the capacity to produce 650,000 barrels of refined petroleum products per day. This will significantly reduce Nigeria’s dependence on imported petroleum products, thereby reducing the country’s energy costs and increasing its energy security.

Energy security is a critical component of Nigeria’s economy, and the Dangote refinery is a step in the right direction. By reducing the country’s dependence on imported petroleum products, the refinery will help to conserve foreign exchange, reduce the pressure on the naira, and increase the country’s GDP.

Furthermore, the refinery will create jobs, stimulate economic growth, and increase government revenue. However, the Dangote refinery’s dominance in the Nigerian energy market has raised concerns about an energy monopoly.

The NMDPRA has expressed concerns about the refinery’s potential to dominate the market, leading to a lack of competition and high consumer prices. Aliko Dangote has countered that the refinery will increase competition and reduce prices, as it will provide an alternative to imported petroleum products.

Despite the concerns about energy monopoly, the Nigerian government and Aliko Dangote have agreed to collaborate to ensure that the refinery benefits the Nigerian economy. The government has provided incentives and support for the project, while Dangote has committed to ensuring that the refinery operates transparently and competitively.

While the Dangote refinery is a significant development for Nigeria’s energy security, the country still relies heavily on fossil fuels. Nigeria needs to diversify its energy sources to include renewable sources such as solar, wind, and hydropower.

This will reduce the country’s dependence on fossil fuels, reduce its carbon footprint, and mitigate the impact of climate change.

Although concerns about energy monopoly need to be addressed, the collaboration between the government and Dangote is a positive development. However, Nigeria must diversify its energy sources to include renewable ones to ensure a sustainable energy future.

Kabir Fagge Ali, a youth corps member with PRNigeria Centre, wrote via faggekabir29@gmail.com.

By Ibrahim El-Caleel

This press release shows that Dangote Refinery is also enjoying the whole petroleum industry ruse and elongating it. NNPC said they bought your petrol at N898. Instead of this press statement to deny it, you simply tell the public the actual price you sold it to them.

For example, “We didn’t sell petrol at N898 to NNPC. We sold it to them at N619”. Is this too difficult to do or unethical?

When you do this, then let the NNPC come and deny it; then you take the next step by publicly sharing a sample of the invoice where they bought it at N619 from Dangote Refinery. This is what transparency means.

But how do you expect people to believe this? Why should people trust Dangote Refinery and not NNPC? Both DR and NNPC are only making statements; they go explain taya, no evidence. Where is the invoice?

The petroleum industry in Nigeria lacks transparency. Nobody wants to let Nigerians understand what is going on so that they can start asking the right questions. They are leaving everyone in the dark so that immediately you say anything, they will mock you that you don’t understand anything; you are a layman who doesn’t understand anything about the oil business! Yet, you are the same layman buying the petrol which fuels the industry.

What Dangote Refinery is doing at the moment is just a glorified, or let me say corporate “DM for price”. It’s the same “DM for price” that BUA Cement did one time saying it has reduced the price of cement without giving any details on how much was the initial price before they “reduced” it.

Hello DR, NNPC,

Price is not a trade secret, geniuses! If you are hiding the price of your product, then there is something shady you are doing. How can you be doing a “DM for price” strategy for a global commodity like petrol? It takes me just a click to know the price of a barrel of crude oil in the global market, same thing for an ounce of gold. What is so special about the price of the Nigerian refined petrol that you need to keep it a secret?

Anyway, lemme mind my business. You know over the last few weeks I decided to give up on my self-assigned goal of understanding the petroleum industry. I only drive into a filling station and buy petrol according to what I can afford at the time. How the petrol got there ain’t really any of my business any longer. I don’t care. When we all become tired of the nonsense going on in Nigeria one day, I am sure we will come and agree on the way forward. I am very sure this nonsense cannot continue to happen forever. It will end one day.

By Uzair Adam 

The Nigerian National Petroleum Company (NNPC) Ltd. has deployed over 100 trucks to the Dangote Refinery in preparation for petrol loading, scheduled to begin on Sunday, September 15, 2024. 

According to a post by NNPC on its official X handle, the trucks were dispatched to the refinery’s fuel loading gantry in Ibeju-Lekki on Saturday, with more expected to arrive. 

“As of Saturday afternoon, more than 100 trucks had been mobilised, and by the end of the day, up to 300 trucks are expected to be stationed at the gantry,” the company said.

The deployment marks a significant step toward ensuring timely petrol distribution from the Dangote Refinery, which is expected to enhance fuel availability nationwide.

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.