…it will encourage investment in the downstream of the petroleum industry
…say the refinery is a game-changer
The Manufacturers Association of Nigeria (MAN), the umbrella body for Nigerian manufacturing concerns, and other stakeholders have solicited the support of Nigerians and the government for Dangote Refinery.
They said that by providing the necessary support to the company, it can perform optimally, which will also serve as an impetus for other investors to invest in the country’s downstream petroleum industry.
After a tour of the massive project at Lekki Free Trade Zone, the President of MAN, Otunba Francis Meshioye, advocated that Nigerians and the government should do all they can to support the multi-billion-dollar company. He described it 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 admires 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 we need 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 the crude it needed to produce”
He said: “ Apart from the fact that the facility can give Nigerians what they need locally and still have some extra quantity left, 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, the government should have no reason not to ensure the facility gets its backing to carry out its activities as 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 soliciting 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 are 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.”
Meanwhile, the IPMAN Vice President, Hammed Fashola, has said if petrol is available locally, there is no need for importation any more.
Fashola recalled that IPMAN had made it clear right from the start that it would support the Dangote refinery and that the new agreement would be a win-win for all.
“We have set it from the onset that we are ready to work with Dangote. We need to encourage him. We are very conscious of that. Based on this, we believe it is going to be a win-win situation for both Dangote and IPMAN. I am sure the price will be reasonable. We are just after the price. Once the price is okay for us, we are good to go,“ he stated.
Asked to state in clear terms if it means IPMAN would no longer pursue the licence to import petrol, Fashola replied, “Once we are having it as we need it, what is the need to import again?”
Fashola clarified that the lifting of fuel is yet to commence as both parties are still putting some logistics in place.
“No day has been fixed yet for the lifting. We still have to put in some logistics. It is not something you will just take your truck and go to Dangote. We still have to do some things—payment modalities and all that. We have to carry our members along too. We have to sensitise them about how the transaction will go. So, it is still ongoing, very soon we will start lifting. I don’t want to give a particular date,” he disclosed.
However, the Dangote refinery has agreed to export more than 200,000 metric tonnes of its petrol abroad.
A report by S&P Global Commodity Insights quoting an insider source confirmed that the refinery had signed its first export orders for its gasoline and will begin dispatching the product “as soon as the ships arrive”.
It said in the first week of November, the refinery made its first attempt to sell gasoline abroad, issuing a public tender for the fuel type, but later appeared to bow to public pressure by revoking the offer.
Three West African traders said the refinery initially issued a tender to sell 40,000 mt of gasoline, with two confirmed specified products with a sulfur content of 150 parts per million.
One source said that the refinery had called the initial tender a “mistake”, while a second called the move “controversial” while Dangote continues to produce less than a third of Nigeria’s domestic gasoline demand.
The refinery official confirmed that the 40,000 mt tenders had been cancelled but said on Nov. 11 that the company had the surplus product to begin exporting. “We have the stocks,” he said.
