News
Dangote says Nigeria Can Become a Refining Hub
Saves Africa’s $17bn Petrol Products Imports
Nasiru Yusuf Ibrahim
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.
KANO FOCUS reports that 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.
Headlines
Gully erosion in Kano: Gov. Yusuf partners World Bank, FG to implement mega project at Gayawa
Mukhtar Yahya Usman
Governor Abba Kabir has visited Gayawa Gully Erosion site and promised to address the environmental challenges and improve the lives of the people in the area.
In a statement issued by the Governor’s Spokesperson Sanusi Bature Dawakin Tofa, the Governor made this promise during a visit to the site on Friday.
Governor Yusuf said that, the visit marked the new chapter in the journey towards addressing the persistent environmental challenges that have plagues the community of Bulbula- Gayawa for in Ungoggo Local Government which also affects parts of Nasarawa and Fagge local government areas for decades.
He added that, the urgent concerns raised by the devastating gully erosion necessitated immediate and decisive action to protect the lives and properties of the people in the community.
“The destructive effects of the gully erosion has not only claimed the lives but has inflicted untold hardship from the tragic loss of farmlands to the dangers faced by the children as they travel to school.” Gov. Yusuf emphasised
“The site has regrettably became a place where criminal activities flourished and the loss of children due to flooding during the rainy season, it is heartbreaking,” the governor lamented.
He added that, his administration is firmly committed to tackling the erosion challenges in Bulbula- Gayawa as part of the larger mission to address land degradation, environmental risks and impacts of climate change throughout the state.
Governor Yusuf revealed that the work would be done through the Agro-climatic Resilience in Semi-Arid Landscape (ACReSAL) under the supervision of state ministry of environment which enjoys strategic partnership with World Bank and the Federal Government of Nigeria.
The governor also informed the members of the community that, the ground work for the erosion control has been completed and it would require billions of naira to execute.
“The significant steps taken by the state government to halt indiscriminate and illegal sand mining activities in several areas and embarked on extensive land restoration projects including the rehabilitation of shelterbelt at Yanbawa and Sabongarin Ginzo.
“The restoration of over 21,261hectares of degraded land and the establishment of wood lot plantation, this initiative have been instrumental in mitigating desertification restoring land fertility and promoting sustainable livelihood for our people.
“Beyond controlling erosion, we are implementing community support programmes to revive livelihoods and rebuild what has been lost. Our livelihood support includes agricultural inputs and skill-building initiatives that will empower families and foster productivity in a secure and peaceful environment.
“The current administration is committed to ensuring that no community is left behind. Today, we are here to affirm that your voices have been heard, and we will tirelessly work to restore safety, security, and prosperity to Bulbula-Gayawa and its surrounding areas,” the governor assured.
In his response on behalf of the community, Village Head of Zango, Malam Hamza Jibrin Nuhu appreciated the concern shown by the governor, disclosing that Governor Yusuf was the first and only governor that visited the Gully Erosion site.
He also prayed for governor and wished him success in all the good policies planned for the development of Kano.
Headlines
Underperforming Officials Face Removal as Governor Yusuf Plans Cabinet Overhaul
Mukhtar Yahya Usman
Kano State Governor, Alhaji Abba Kabir Yusuf, has announced a potential cabinet reshuffle, signaling his intention to remove underperforming members.
This follows his receipt of a report from a committee assessing the performance of his cabinet members.
Governor Yusuf shared this update during a live radio interview with select media outlets at the Government House, noting that the public would soon be informed of the government’s next steps.
Governor Yusuf emphasized that his close collaboration with cabinet members over the past year and a half has given him firsthand insight into their abilities, allowing him to make independent decisions on their future in his administration.
He affirmed that no commissioner in his administration lobbied for their position, adding that he based his appointments on each person’s experience, credibility, and expert recommendations.
Highlighting his expectations, Governor Yusuf said he requires absolute loyalty to himself, the New Nigeria People’s Party (NNPP), and the Kwankwasiyya Movement from his commissioners.
He stressed that he expects dedication, proactive initiatives, and a strong commitment to advancing Kano State’s development.
On poverty alleviation, the governor reported ongoing efforts to distribute foodstuffs across urban and rural areas, aimed at easing the hardship caused by the recent petroleum subsidy removal.
He assured that this assistance would continue to support vulnerable residents.
Governor Yusuf also revealed ongoing upgrades to KASCO, the state-owned fertilizer production company, to enhance agricultural output by providing farmers with adequate fertilizer supplies.
Additionally, he underscored his administration’s focus on empowering women and youth, noting that each month, 52,000 women and youths across the state receive N50,000 to start small businesses and promote self-reliance.
The governor’s remarks underscore his commitment to performance-driven governance and a responsive administration that prioritizes the welfare of Kano’s citizens.
Headlines
MNCH: Gov Yusuf re-opens Nuhu Bamalli maternity hospital
Mukhtar Yahya Usman
As part of his efforts to reduce maternal and child mortality rate , Kano State Governor, Alhaji Abba Kabir Yusuf, has re-commissioned the Bamalli Nuhu Maternity Hospital following extensive renovations conducted by his administration.
This was contained in a statement issued by the governor’s spokesperson Sunusi Bature Dawakin Tofa on Thursday.
Addressing attendees at the hospital’s re-commissioning ceremony on Thursday, the Governor expressed satisfaction with the upgraded facility.
He noted that upon taking office, the hospital was in a deteriorated state and one of the first locations he prioritized for improvement.
“Today, the result of that commitment has come to fruition.”
Governor Yusuf urged stakeholders of the hospital to maintain the newly installed equipment and keep the facility clean, emphasizing the importance of providing effective healthcare services to the residents of Kano.
He reassured the people of the state that his administration is committed to delivering quality healthcare.
In line with this vision, he announced that contracts for the renovation of all General Hospitals across the State have been awarded to benefit all citizens.
During the event, the Governor distributed essential medical supplies to hospitals across Kano State.