Author: Victor Ogunyinka

Manufacturers Association of Nigeria (MAN) have solicited the support of both Nigerians and the government for Dangote Refinery, to enable it to perform optimally.

The support they canvassed will also serve as an impetus for other investors to invest in the downstream sector of the petroleum industry in the country.

The President of MAN, Otunba Francis Meshioye, who made the call after a tour of the Dangote Petroleum Refinery, Petrol Chemical Complex and Fertilizer Plant advocated that Nigerians and the government should do all they can to support the multi-billion-dollar company, which he described as a source of pride and a gift not only to Nigeria but also to the African continent and the whole world.

He described the Dangote Refinery as a game-changer in the Nigerian oil and gas industry, saying that it is not only creating jobs and driving economic growth but also contributing to our nation’s energy security and self-sufficiency.

According to him, the project is quite inspiring, and he admired the inspiration of the promoter of the project, Aliko Dangote. He said: “To have been inspired to establish this facility is very magnificent, it is the first ever in Africa and the first ever of such refinery in the whole world. It has many first, first and first.”

The company has the capacity to produce all our needs locally, petroleum, and other similar products: no one would come to the facility and he would not be inspired or encouraged to ensure that all the support that the company requires should be given to it.

The MAN President said the government should do all that is humanly possible to ensure that the facility works Optimally. “It is prudent and expedient that the   necessary supports are given to the company for the economic benefits of Nigeria.”

“If the facility can produce 650,000 barrels of crude per day and Nigeria is producing far above this volume per day, she should give the facility all crude it needed to produce”

He said, apart from the fact that the facility can give Nigerians what they need locally, the excess will be exported, and when they are exported, the country benefits because it will earn foreign exchange for the government.

“So, whichever way we look at it, the facility requires the government’s support to be able to operate optimally.  We have seen the laboratory which is in a class of its own. It is first among equals around the world. It is functioning very well. It is a complex on its own.

With this kind of facility that starts from quality control to quality assurance, just to ensure that the harmful effects of the products are at zero level, what can be greater than this?  This is very unique and I will encourage all stakeholders to give maximum support, and not by the way support, but maximum support.”

“I cannot see anything that is lacking in this company, we have been here since morning and went through all the units. The facility can deliver products between 1760 trucks to 1800 trucks per day. So if you have such several trucks going out of the facility a day to various destinations in Nigeria, so many people will benefit from it. There will be more jobs, many families will be comfortable because of the jobs this will create, many artisans will benefit and it will have a spillover effect on so many sectors of the economy.

If they can produce AGO, gasoline and Jet A fuel, this is good and the government should have no reason not to ensure the facility gets its backing to carry out its activities, because it is going to benefit massively.”

The MAN boss who stated that his organization is an advocacy group, said to a large extent it will support the Dangote Refinery by pushing its case with the government, and also solicit the support of necessary government agencies that can ensure that it operates fully.

The association, he said, always discusses with the government issues that affect its members and it has always listened to it , and always finds solutions to those issues, stating further that Dangote Refinery’s case will not be different.

“The sheer scale and ambition of this project is truly impressive, and we applaud the vision and determination of the Dangote Group in making this refinery a reality.

As manufacturers, we understand the importance of reliable and affordable energy in driving our businesses forward. The Dangote Refinery will undoubtedly have a positive impact on the entire manufacturing value chain, providing a reliable source of fuel and petrochemical products that are essential for capacity utilisation and value addition.

“I believe that the success of the Dangote Refinery serves as an inspiration to all of us in the manufacturing sector. It demonstrates what is possible when we combine innovation, technology, and investment to create world-class facilities that benefit the entire nation.”

Saves Africa’s $17bn Petrol Products Imports

Nigeria must enhance its crude oil production capacity and effectively manage its crude supply to ensure adequate feedstock for domestic refineries, in order to transit from a net importer to a net exporter of petroleum products.

Chairman of Dangote Refinery and Petrochemicals Company Limited, Aliko Dangote, made this assertion during his keynote address at a summit held in Lagos by the Crude Oil Refinery Owners Association of Nigeria (CORAN). The event attracted top government officials and key stakeholders from the midstream and downstream sectors.

Addressing Nigeria’s potential as a refining hub, Dangote expressed concern that, despite producing over 3.4 million barrels of crude oil per day, Africa imports around 3 million barrels of petroleum products daily. He noted that these imports, primarily from Europe, Russia, and other regions, are estimated to cost approximately $17 billion in 2023.  He urged that Nigeria could capitalise on this situation to become a net exporter of refined petroleum products, as the markets would be more competitively served from Nigeria.

“Both the crude oil and the petroleum products will travel shorter distances. The logistics costs of floating storage will be eliminated, and countries can purchase their petroleum product requirements just-in-time. Nigeria and Africa can become completely self-sufficient, and we can keep all the value on our shores. We have done it in cement, and we can certainly do it for petroleum products.

“It is worth noting that the Dangote Refinery already produces sufficient diesel and jet fuel to meet Nigeria’s demand. We recently started the production of PMS and will soon ramp up to meet Nigeria’s needs. Our refined products have been exported to diverse markets, including Europe, Brazil, the UK, the USA, Singapore, and South Korea,” he added.

Represented by Engr. Mansur Ahmed, Group Executive Director of Dangote Industries Ltd, Dangote emphasised that Nigeria must develop a refining capacity of 1.5 million barrels per day and prioritise domestic crude supply obligations to seize this opportunity. Acknowledging the arising and future challenges, he urged the government to incentivise investors, contrasting this with the Dangote Oil Refinery, which was built without any government incentives.

“…It is unfortunate that while countries like Norway are putting oil proceeds into a future fund, in Africa, we are spending oil proceeds from the future. We will also need to prioritise the implementation of domestic crude supply obligations. We will need to expand our crude oil production capacity to support demand from new refining capacity. The government of President Bola Ahmed Tinubu is taking active steps to achieve this through fast-tracking IOC divestments and other initiatives,” he stated.

Emphasising that global developments in the petroleum sector, particularly in Europe, will disrupt historical trade flows for refined petroleum products in Africa, Dangote stated that Nigeria is uniquely positioned to capitalise on this opportunity and become a significant player in the global oil industry. He called for consultation, collaboration, and cooperation among stakeholders.

“As a vibrant exporter of refined products, Nigeria will witness an improvement in its balance of trade and generate much-needed foreign currency. Nigeria’s potential as a refining hub is clearly not in doubt; let us work together to make it happen,” he urged.

The foremost industrialist noted that the summit’s theme, “Making Nigeria a Net Exporter of Petroleum Products,” would have seemed unrealistic a few years ago, and added that despite being Africa’s largest crude oil producer, Nigeria has historically relied on imports to meet its refined petroleum product needs.

However, he emphasised that the Dangote Petroleum Refinery and Petrochemicals is poised to transform Nigeria from a “net importer” to a “net exporter” of refined petroleum products, establishing the country as an emerging player in global downstream trade flows; with refined products already exported to various markets, including Europe, Brazil, the UK, the USA, Singapore, and South Korea.

Commending Dangote for this transformation, Chairman of IPPG/Waltersmith Refinery & Petrochemicals Co. Ltd, Abdulrazaq Isa, called on the government to support domestic refiners by ensuring the availability of crude, adhering to domestic crude supply obligations, and implementing effective pricing and monitoring measures to prevent smuggling.

Chairman of CORAN’s Board of Trustees and CEO of Integrated Oil & Gas, Captain Emmanuel Iheanacho (rtd), remarked that the Dangote Oil Refinery has set a high standard by producing Euro-V products, thus protecting citizens from exposure to high-sulphur products. He noted that transforming Nigeria into a net exporter will bring numerous benefits but reiterated the need for increased investment to boost crude production, lamenting that Nigeria loses approximately $83 billion annually by not meeting its OPEC quota.

While acknowledging that tank farms remain essential despite local refining, Iheanacho urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to consider cancelling import licences, as Nigeria can now meet its local demand.

Chairman of Major Energies Marketers Association of Nigeria (MEMAN), Huub Stokman,  stated that Nigeria is on the verge of becoming Africa’s refining powerhouse, which will significantly boost the economy. The Chairman of CORAN, Momoh Oyarekhua, also expressed concern over challenges related to crude supply and stated that domestic refiners will work with regulators and stakeholders to address these issues.

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lopkobiri,  assured that the government would continue to refine frameworks to enhance crude production and support domestic refineries. His counterpart from the Ministry of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, emphasised the Tinubu-led administration’s commitment to ensuring value addition for mineral resources before export.

Two panel sessions were held to discuss Nigeria’s downstream petroleum refining sector and its potential impacts, as well as policy strategies for achieving self-sufficiency in petroleum products.

As company prepares for PMS rollout

Dangote commended for hiring, nurturing Nigerian Engineers

The League of engineering bodies in Nigeria have hailed the huge scale of engineering structures at the Dangote Petroleum Refinery and Petrochemicals and Dangote Fertiliser Plant at Ibeju-Lekki, Lagos State, describing the superstructure at the complex as awesome and mind-blowing; even as the company prepares for the rollout of its premium motor spirit (PMS) product, also known as petrol.

The League, comprising the National Society of Engineers (NSE), Nigerian Academy of Engineering (NAE), Association of Consulting Engineering in Nigeria (ACEN), and the Council for the Regulation of Engineering in Nigeria (COREN), toured the complex at the weekend, where they were received by the Vice President, Oil & Gas, Dangote Industries Limited, Mr. Devakumar Edwin.

The body of engineers also commended the President of Dangote Industries Limited, Aliko Dangote for hiring and nurturing highly-skilled Nigerian engineers – who were guides during the visit – and declared that engineering is alive in Nigeria, from the workforce to the construction at the Dangote Refinery complex.

During an interactive session, the 34th and first female President of the Nigerian Society of Engineers, Margaret Oguntala, described the facility as “mind-blowing”. She added that the refinery project from construction to employment, gives her hope and assurance that young Nigerian engineers are ready to take up the world.

“I was awed to see the state-of-the-art facility at the Dangote Refinery; what I see here today will blow the mind of any engineer; it is just like the movies. I was an intern at the Port Harcourt Refinery and I also visited the Kaduna Refinery, it is nothing compared to what I see here. The young engineer that took us around showed capacity and we are happy that you are building the future of engineers. We at the NSE are behind you, we shall take this home and let the world know that engineering is alive at the Dangote Refinery,” she added.

Speaking on behalf of the Nigerian Academy of Engineering, Prof. Azikwe Peter Onwualu also noted that the visitors have seen “something good and Nigerians need to know about it.” Prof. Onwualu added “We are happy some of our fellows are part of your system. We would like to remind the President of the Dangote Group, Mr. Aliko Dangote, that if you are not doing something great you will not be criticised. Whatever you are doing, keep it up. If we have this kind of development across Nigeria, people won’t be talking about protests. Keep doing what you are doing and you will hear from us.”

Also, President of Council for the Regulation of Engineering in Nigeria, COREN, Prof. Sadiq Abubakar, enthused that Nigerian engineers are not inferior to their counterparts globally and the Dangote Refinery is visible proof of this. “We have known this as a fact that Nigerians are no less in engineering globally. We know our capabilities and this attests to it. What we saw today is emotional and I wonder what the motivation for this colossal investment is. We would like to encourage him for keeping the spirit of a true Nigerian.”

Reacting to questions, the Group Vice President, Oil and Gas, Mr. Edwin, demystified talks around the monopoly tag, stating that someone has to start a project before others follow. “Nigeria was one of the largest importers of cement, then we started manufacturing cement and then we became exporters, same thing applies to sugar, salt and now fertiliser. This breakthrough opened the doors for other investors in those industries and Nigeria is better for it.

“What motivates Mr. Dangote is his sheer interest in the Nigerian project. It is true, we are in business to make money but the question is where is the money going to? Every money Dangote is making goes back to the Nigeria economy, from cement to salt, sugar, fertiliser.”

“The business strategy of the Dangote Refinery is to minimise the energy cost and the overall cost of production; build the most environmentally friendly; maximise value addition; maximise gasoline which is in high demand with about 55 per cent of the production capacity compared to 22 per cent of the existing refineries in Nigeria; strategically located marine infrastructure for crude receipt and product evacuation; state-of-the-art technology; produce Euro V products; provide crude flexibility and create market of $21 billion per annum of Nigerian crude,” Mr. Edwin added.

While speaking to journalists, the Technical Consultant to Dangote Refinery, Engr. Babajide Soyode, said the visit of his professional colleagues, made him “very proud”. He added that “I knew the project was a hard one, but Aliko Dangote is harder. He follows up on his passion. His corporate vision is to meet the need of the people. It is the greatest honour of my life to be part of this project.”

The Dangote Refinery is poised to begin production of petrol, according to Mr. Edwin; a process which is expected to complement the current products at the refinery, stimulate local supply of the vital product to Nigerians, and save huge foreign exchange revenue for the country.