₦airaland Forum

miltonchux:
When you have the support of government, you enjoy the monopoly in the different sector of the economy.

Willie2015:
The Federal Government has indicated that it relies heavily on the Dangote refinery to fulfil its promise to Nigerians.

When the hope of the FG and the entire 180 million Nigerians rest in the hands of a single individual, Dangote. All of us will soon become Dangote slaves since FG cant think beyond their dick that this is a monopoly!

Once he coughs in cement, sugar, flour, salt, pasta, beverages sector, all Nigerians coughs. They should just simply donate the country to Dangote as a gift.

hobermener:
Dangote and his ilks are just fronts for the old order (the wealthy military junta), considering the kind of concessions they enjoy.
The way this project is being heralded and anticipated by the present government gives one the feeling that the economic hope of africa's most populous nation hinges solely on this refinery. Nigerians wake up!!! Dangote refinery wont solve our myriad of problems!!!

soberdrunk:
As much as this refinery is a welcome development, i am not comfortable with this man's 'Monopolistic grip' on the Nigerian economy, it is not good for a fragile economy like our own........

DrayZee:
I think a monopoly on certain sectors by him wouldn't be so bad. I mean, some of these things are simple things the government could have just closed their eyes and built.
But instead, they decided to let us wallow in the repercussions of their poor reasoning.

dominique:
Hope all these targets are achieved and some crazy cabal somewhere don't sabotage his efforts, 2019 is still a bit far o.

paradigman:
God bless Aliko Dangote.

This multi billion dollars integrated projects will definitely have an organic impact on the Nigerian economy no doubt.

The largest refinery in Africa, the biggest fertilizer plant in Africa, a private jetty and power plant, an industrial estate and park and perhaps the second largest gas gathering project in Nigeria.

To Dangote, I doff my cap.

He is futuristic, pragmatic, forward looking and can smell a good investment from a thousand kilometers away.

For me, all Nigerians should support this great man, Aliko.

To the regulators, let's regulate but also support. To Nigerian government, clear all bureaucracy, to other investors, lets seek vertical and horizontal business opportunities to be created, to communities and other strategic stakeholders let us partner and support our own.

Long live Nigeria.

hobermener:
Dangote and his ilks are just fronts for the old order (the wealthy military junta), considering the kind of concessions they enjoy.
The way this project is being heralded and anticipated by the present government gives one the feeling that the economic hope of africa's most populous nation hinges solely on this refinery. Nigerians wake up!!! Dangote refinery wont solve our myriad of problems!!!

The9thinning:
He said it was going to be completed by end of 2017

soberdrunk:
As much as this refinery is a welcome development, i am not comfortable with this man's 'Monopolistic grip' on the Nigerian economy, it is not good for a fragile economy like our own........

rodeo0070:
…Work accelerates to meet completion target
…Power Generation: 12,000MW
…Direct/Indirect Employment: 149,000
…Savings for Nigeria: $7.5billion
…To Generate Additional $5.5b

12,000MW of power generation can be added to the grid with the additional gas from our system…. We will be creating about 4,000 direct and 145,000 indirect jobs…save over $7.5billion for Nigeria annually…and generate an additional $5.5billion – Aliko Dangote

WHEN the bell that ushered the Minister of State for Petroleum Resources, Dr. Ibe Emmanuel Kachikwu, into his present office started to toll, the heart of many Nigerians leapt for joy that the nation’s four refineries would be fixed to refine commercial crude oil for domestic consumption. Kachikwu, who was also the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, promised to carry out maintenance of the country’s refineries within a few months.

Despite efforts, the capacity of the refineries has not been increased to meet local demand. Consequently, Nigeria continues to import a bulk of its petroleum products from the global market at the expense of its scarce foreign exchange.

But hope is not lost as the Dangote Group is set to complete its $12 billion refinery in 2019. The Dangote 650,000 barrels per day plant is perceived as a timely intervention to tackle the nation’s numerous challenges in the midstream sector of the industry.

Expectedly, the government has adopted the refinery as a strategy project aimed at enabling it to end its many years of massive importation. The reason is not far-fetched. The Federal Government has indicated that it relies heavily on the Dangote refinery to fulfil its promise to Nigerians. To this end, Kachikwu, who visited the Dangote Oil Refinery site at Lekki Free Trade Zone, in Lagos, said the government is ready to play its part as a responsible stakeholder to assist in making sure the project is completed before the scheduled date.

The minister, who said he was overwhelmed by the dimension of the project, explained that the present government had always believed that the private sector holds the ace in industrialisation efforts of the government, noted that, that belief has been reinforced by the Dangote refinery.

According to the nation’s new petroleum policy, Nigeria would move from oil as a source of income to fuel for economic growth. It stated that the petroleum policy intends to move the Nigerian economy away from exporting crude oil to IOCs for immediate cash benefits.

“Crude oil will not be exported, but a significant and growing proportion of government equity crude oil will be sent to local refineries (whether private or public).

“Under the implementation of the petroleum Policy, oil will be refined within Nigeria and further used to create value for the nation.

“The intention is to achieve a competitive supply of petroleum products; make Nigeria a refining hub; introduce petro-chemical industries to realise the full value from oil refining.”

However, the postulations of many observers are: will the Dangote plant be completed in record time? What support has been given by the government; And, what impact will it make on the nation’s economy?

Extent of work

A recent visit to the site of the plant in Lagos showed that progress has been made in many areas. For instance, the sand filling of the site has been completed. Work was ongoing in piling, targeted at preparing the ground for foundation laying. The construction of habour that would enhance import and export of various items was ongoing. Officials who expressed the management commitment to the project confirmed that efforts have been put in place to execute other segments of the refinery.

FG support

The government has indicated interest to support the completion of the project in record time because of its importance. Kachikwu who made the commitment, said, “the private investors have capacity to invest in different sectors of the nation’s economy.

“It is good to say that private sector is the answer to Nigerian’s problems with a project as big as this. The challenge I will give you today is that of time, I see your time for completion is 2019 December; but I am sure you will understand my desire if I tell you that the refinery component of this project should come earlier than the set date.

“I have made very firm commitment to Nigerians that I must stop importation of petroleum products by 2019 and I am going to keep to it. It is absolutely important that we do this early and given the feat that we have achieved in terms of speed of construction and I urge you to do all within you to achieve its completion before the due date.

“I am sure His Excellency President Muhammadu Buhari will be absolutely excited if he were to find himself, not only crystallizing the policy position we have taken so far, but also coming here himself to commission a facility, as big as this before the end of his first term. Whatever configurations your engineers have come up with, I urge that they go back to the drawing board and get me my refined products before your said date.”

Expected impact

The plant would likely make a lot of positive impact, especially because of its size. According to the President of Dangote Group, Dr. Aliko Dangote, the refinery will have the capacity to flood the domestic and international market with refined products. Also, the Petro-chemical Plant will produce 780 KTPA Polypropylene, 500 KTPA of Polyethylene while the Fertiliser project will produce 3.0 million metric tonnes per annum (mmtpa) of Urea.

“In addition, we are also building the largest sub-sea pipeline infrastructure in any country in the world, with a length of 1,100km, to handle 3 billion SCF of gas per day. We also plan to construct a 570 MW power plant in this complex. As a matter of fact, gas from our gas pipeline will augment the natural domestic gas supply and we estimate that an additional 12,000MW of power generation can be added to the grid with the additional gas from our system.

“We will be adding value to our economy as all these projects will be creating about 4,000 direct and 145,000 indirect jobs. We will also save over $7.5billion for Nigeria annually, through import substitution and generate an additional $5.5billion per annum through exports of the refined petroleum products, fertilizer and petro-chemicals. We envisage that these projects, which would cost over $18 billion, would be completed in 2019.

Local content

The refinery would also enhance local content development in Nigeria. Already, the management of the refinery has agreed to select competent Nigerian vendors that will participate in the construction of the plant from the Nigerian Oil and Gas Industry Joint Qualification System (NOGICJQS), the database of available capacities in the oil and gas industry managed by the Nigerian Content Development and Monitoring Board (NCDMB).

The Chief Operating Officer, Dangote Refinery Project, Mr. Giuseppe Surace, committed to this at the technical meeting held between top officials of the company and NCDMB at the refinery project site recently. He affirmed that there were many advantages in patronizing the local market, adding, “Nigerian companies will get the first right of refusal. We will procure anything that is available in Nigeria.”

The COO confirmed there were several Nigerian content opportunities in the company’s refinery and gas gathering projects but interested companies must submit competitive bids and have technical capabilities. He explained that the project is a private investment, hence the strategy is to get the best quality anywhere in the world at the most competitive price.

He advised local vendors to quote reasonable prices when bidding for industry projects, rather than believe that they would win jobs because of the Nigerian Content Act, irrespective of expensive quotations they submit. He noted that Dangote Group engaged the services of some Nigerian companies on its fertilizer project which had reached an advanced stage of development and was committed to do the same on the 650,000 barrels per day refinery project, which will be completed in October 2019.

The Executive Secretary NCDMB, Engr. Simbi Wabote, promised that the board will assist the company in the utilization of the NOGICJQS database, to ensure that it maximizes the utilization of local personnel, goods and services in the construction and operations phase of the project.

Beyond the DANGOTE Refinery, observers believe that the nation needs many modern refineries in order to meet domestic demand and turn the Gulf of Guinea (West Africa) into a major refining hub in the world. But with the efforts of Africa’s richest man, hope rises.

Source: https://brandspurng.com/the-promise-of-dangotes-12bn-refinery/

soberdrunk:
As much as this refinery is a welcome development, i am not comfortable with this man's 'Monopolistic grip' on the Nigerian economy, it is not good for a fragile economy like our own........

soberdrunk:
As much as this refinery is a welcome development, i am not comfortable with this man's 'Monopolistic grip' on the Nigerian economy, it is not good for a fragile economy like ours.......

seXytOhbAd:
I applaud the vision,boldness, and direction this man took towards pushing this project forward. I will like to analyse why Dangote is truly a visionary without any tribal bias.

Proper analysis of the oil game. Femi Otedola made billions of dollars at the peak of the oil spike. He could have easily gotten into refining crude within the country, taking advantage of his already monopolised position in the diesel sector to further boost his position. Yet, he decided to focus on distributing already refined product, paying for refining, transportation and clearing of a product that is in abundance here in our beautiful country.
Ifeanyi Uba was another tycoon who could have easily gone into the refining business. His contacts in government put him at a very advantageous position, yet his alleged dealings with his Nnewi billionaire brother Cosmas Maduka soiled his reputation and tarnished his image in the financial sector.

Lesson: Dangote is really a late comer to the oil business in terms of active participation, but he decided to focus on a different aspect of the game after watching everyone else take a stab at it. Even if you want to say he is chopping political favours and money, you cannot deny his business acumen. Besides, if you were a politician and Dangote wanted you to invest your ill gotten gains in his business, really, would you say no?

Unclesamo:
Cant't U all see Obvious Politics being used here??


Dangote a good man indeed. God-father of MONOPOLY


so, d refinery ws too hard for the government to set up b4 now.


KONTINU

freshest4live:
Dangote in an interview said...The reason he would not go into the telecommunication sector, is that there are too many top players already in that market.

ajl:
Government don't run businesses especially in a free market economy. Government-run businesses hardly succeed. You expect a government that can't run an ordinary airline to successfully run four refineries. Pay a visit to one of the govt agencies and see the kind of people you expect to run a business. It's a human nature challenge that social scientists will provide good reasons why such businesses fail.

iamchybs:
Dangote in a recent interview said contrary to popular belief, he isn't enjoying the political favours people think. He said no one can say he/she is doing him a favour in his business even the presidents of countries he has investments in.

hobermener:
Dangote and his ilks are just fronts for the old order (the wealthy military junta), considering the kind of concessions they enjoy.
The way this project is being heralded and anticipated by the present government gives one the feeling that the economic hope of africa's most populous nation hinges solely on this refinery. Nigerians wake up!!! Dangote refinery wont solve our myriad of problems!!!

freshest4live:
It's majorly a Nigerian problem though, in Germany for instance, public services seem to be better than most private services.

EponOjuku:
Nigerians are in for a long thing.

How much was a bag of cement before Dangote monopolized the cement sector? How much is it now?

How much was sugar before he monopolized the sugar market? How much is it now?

Wait till Dangote enjoys his monopoly on the electricity generation to Lagos, petrol to Nigeria and more. That's when Nigeria would start paying attention to something called 'Competition Law'.

ultron12345:
and did anybody restrain you from building your own refinery to compete with his and break his potential monopoly. Some people will just be spewing trash.