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Dangote Calls for Improved Funding to Fight Malaria

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  • Dangote Calls for Improved Funding to Fight Malaria

Africa’s richest man and the President of Dangote Group, Alhaji Aliko Dangote, has called for improved funding to fight the malaria scourge in the country, stating that the effects on the nation and her economy are devastating.

Speaking yesterday in Lagos when the Dangote Foundation, which he chairs, led other stakeholders in launching a private sector Engagement Strategy against Malaria (PSESM), he said: “In addition to direct costs to businesses and the economy, it indirectly damages the economy through the deterioration of human capital, and loss in savings, investments and tax revenues. This is clearly too high a cost to society and to the economy.”

His remarks came on the heels of the 2016 Philanthropy of the Year award won by the Dangote Foundation at the All Africa Business Leaders Awards (AABLA) held at the weekend in Johannesburg, South Africa.

The awards ceremony is the initiative of CNBC Africa and ABN to recognise and reward outstanding African companies for their performance in 2015.

According to a statement from the organisers of the awards, a total of Africa’s nine best business leaders were celebrated at the 2016 AABLA at the exclusive all Africa finale, held in Johannesburg and attended by prominent leaders of businesses drawn from across the continent, ambassadors and the Premier of Gauteng, David Makhura.

At the West African regional stage of the awards held in Lagos on October 20, Dangote Foundation emerged winner of the Philanthropy of the Year award, setting the stage for its emergence as overall winner of the African Philanthropy of the Year award.

Receiving the award, the Chief Executive of Dangote Foundation, Ms. Zouera Youssoufou, thanked the organisers for the honour accorded the Foundation and Dangote Group.

Represented by the Chief Executive of Sephaku Cement, South Africa, Pieter Fourie, she said the belief of the Chairman, Dangote Foundation recognising that “to whom much is given, much is required”, led him to set up his Foundation back in 1993.

She explained that the Foundation in the last two years had grown and was restructured to have a greater impact, adding that the $1.25 billion endowment by Alhaji Dangote has made it the largest private philanthropy in Africa.

Youssoufou stated that the Dangote Foundation is focused on improving the livelihoods of the most vulnerable Nigerians and Africans, focusing on health, education and the economic empowerment of women.

According to her, the Foundation was the single largest contributor to the fight against Ebola in Nigeria and with the African Union, is working tirelessly to provide relief for the humanitarian crisis unfolding in Northern Nigeria as a result of the insurgency.

Meanwhile, Dangote Foundation mo0nday in Lagos led other stakeholders in launching a private sector Engagement Strategy against Malaria (PSESM).

PSESM, code named “Malaria to Zero” has the task of eliminating malaria by 2020.

The launch of the blue print in Lagos, which was spearheaded by the Dangote Foundation, saw the Minister of Health, Prof Isaac Adewole, making a passionate plea to private sector operators to help the government in the efforts at stamping out malaria in Nigeria completely, because the government alone could not succeed without the assistance of corporate firms.

The collaboration with the organised private sector, he stated, had become imperative given that over 30 million insecticide-treated nets used in Nigeria yearly, as well as over 80 per cent of the anti-malaria drugs in the country are imported, hence the need to look inwards to ensure that the drugs are manufactured locally.

He said: “We have been engaged in a series of advocacy which has yielded results, but advocacy is not enough, many people would have been bitten before coming under the insecticide treated-nets.

“We also need research and we realised that we can’t do it alone. That is why we are engaging the private sector. We need its discipline and efficiency in the local production of the drugs because that can generate employment in the country.”

The minister explained that over the last decade, substantial progress had been made in the control of malaria in Nigeria through significant investments from government and development partners.

Also, the supply and distribution of anti-malaria products has increased nationwide, he said.
According to Prof Adewole, over 100 million long-lasting insecticide treated nets were distributed within the last seven years to protect over 28 million out of the 33 million households in Nigeria.

In his remarks, Dangote lamented the effects of the malaria scourge on the nation and her economy.

He said that Nigeria’s transition from malaria control to elimination would provide a compelling opportunity for Nigeria to reflect on its aspirations, take stock on the progress, and inspire bold, innovative approaches with complementary public private partnerships to disrupt poor malaria outcomes.

Dangote noted that the private sector could play an important role in mobilising domestic resources, capabilities, innovation and advocacy platforms to catalyse progress in achieving Nigeria’s malaria pre-elimination agenda.

To lead by example for private sector active participation in achieving the task of eradicating malaria from Nigeria, Dangote, who is the National Malaria Ambassador, said he was committed to using his conglomerate, the Dangote Group of companies, as an example of what companies in Nigeria should be doing.

He disclosed that henceforth there would be “malaria education for my staff at all of our business locations, distribution of prevention tools and supplies to our workers in the factories and in the fields”.

Dangote said he co-founded the Private Sector Health Alliance of Nigeria (PHN), which is focused on mobilising the private sector across one coordinated platform to leverage private sector capabilities, advocacy, innovation and resources, and to complement government efforts in advancing health outcomes.

Other prominent people he had brought on board, according to him, include Microsoft founder, Mr. Bill Gates, and other prominent business leaders in Nigeria comprising Mr. Jim Ovia (co-chair), Mr. Aigboje Aig-Imoukhuede (Co-founder, Access Bank Plc), Mr. Herbert Wigwe (CEO, Access Bank Plc), Dr. Muhammad Ali Pate (co-chair), Mrs. Sola David Borha and other companies that had joined him in support of PHN.

Dangote called on more private sector leaders and companies to join the “Malaria to Zero” campaign and pool resources that would have an impact on a scale that is greater than the underlying corporate initiatives against malaria.

Dangote promised that he would continue to use his voice to bring attention to the fight against malaria, disclosing that he had recently accepted an invitation from Bill Gates and Ray Chambers to join them on the End Malaria Council.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Dangote Mega Refinery in Nigeria Seeks Millions of Barrels of US Crude Amid Output Challenges

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The Dangote Mega Refinery, situated near Lagos, Nigeria, is embarking on an ambitious plan to procure millions of barrels of US crude over the next year.

The refinery, established by Aliko Dangote, Africa’s wealthiest individual, has issued a term tender for the purchase of 2 million barrels a month of West Texas Intermediate Midland crude for a duration of 12 months, commencing in July.

This development revealed through a document obtained by Bloomberg, represents a shift in strategy for the refinery, which has opted for US oil imports due to constraints in the availability and reliability of Nigerian crude.

Elitsa Georgieva, Executive Director at Citac, an energy consultancy specializing in the African downstream sector, emphasized the allure of US crude for Dangote’s refinery.

Georgieva highlighted the challenges associated with sourcing Nigerian crude, including insufficient supply, unreliability, and sometimes unavailability.

In contrast, US WTI offers reliability, availability, and competitive pricing, making it an attractive option for Dangote.

Nigeria’s struggles to meet its OPEC+ quota and sustain its crude production capacity have been ongoing for at least a year.

Despite an estimated production capacity of 2.6 million barrels a day, the country only managed to pump about 1.45 million barrels a day of crude and liquids in April.

Factors contributing to this decline include crude theft, aging oil pipelines, low investment, and divestments by oil majors operating in Nigeria.

To address the challenge of local supply for the Dangote refinery, Nigeria’s upstream regulators have proposed new draft rules compelling oil producers to prioritize selling crude to domestic refineries.

This regulatory move aims to ensure sufficient local supply to support the operations of the 650,000 barrel-a-day Dangote refinery.

Operating at about half capacity presently, the Dangote refinery has capitalized on the opportunity to secure cheaper US oil imports to fulfill up to a third of its feedstock requirements.

Since the beginning of the year, the refinery has been receiving monthly shipments of about 2 million barrels of WTI Midland from the United States.

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Oil Prices Hold Steady as U.S. Demand Signals Strengthening

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Oil prices maintained a steady stance in the global market as signals of strengthening demand in the United States provided support amidst ongoing geopolitical tensions.

Brent crude oil, against which Nigerian oil is priced, holds at $82.79 per barrel, a marginal increase of 4 cents or 0.05%.

Similarly, U.S. West Texas Intermediate (WTI) crude saw a slight uptick of 4 cents to $78.67 per barrel.

The stability in oil prices came in the wake of favorable data indicating a potential surge in demand from the U.S. market.

An analysis by MUFG analysts Ehsan Khoman and Soojin Kim pointed to a broader risk-on sentiment spurred by signs of receding inflationary pressures in the U.S., suggesting the possibility of a more accommodative monetary policy by the Federal Reserve.

This prospect could alleviate the strength of the dollar and render oil more affordable for holders of other currencies, consequently bolstering demand.

Despite a brief dip on Wednesday, when Brent crude touched an intra-day low of $81.05 per barrel, the commodity rebounded, indicating underlying market resilience.

This bounce-back was attributed to a notable decline in U.S. crude oil inventories, gasoline, and distillates.

The Energy Information Administration (EIA) reported a reduction of 2.5 million barrels in crude inventories to 457 million barrels for the week ending May 10, surpassing analysts’ consensus forecast of 543,000 barrels.

John Evans, an analyst at PVM, underscored the significance of increased refinery activity, which contributed to the decline in inventories and hinted at heightened demand.

This development sparked a turnaround in price dynamics, with earlier losses being nullified by a surge in buying activity that wiped out all declines.

Moreover, U.S. consumer price data for April revealed a less-than-expected increase, aligning with market expectations of a potential interest rate cut by the Federal Reserve in September.

The prospect of monetary easing further buoyed market sentiment, contributing to the stability of oil prices.

However, amidst these market dynamics, geopolitical tensions persisted in the Middle East, particularly between Israel and Palestinian factions. Israeli military operations in Gaza remained ongoing, with ceasefire negotiations reaching a stalemate mediated by Qatar and Egypt.

The situation underscored the potential for geopolitical flare-ups to impact oil market sentiment.

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Shell’s Bonga Field Hits Record High Production of 138,000 Barrels per Day in 2023

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Shell Nigeria Exploration and Production Company Limited (SNEPCo) has achieved a significant milestone as its Bonga field, Nigeria’s first deep-water development, hit a record high production of 138,000 barrels per day in 2023.

This represents a substantial increase when compared to 101,000 barrels per day produced in the previous year.

The improvement in production is attributed to various factors, including the drilling of new wells, reservoir optimization, enhanced facility management, and overall asset management strategies.

Elohor Aiboni, Managing Director of SNEPCo, expressed pride in Bonga’s performance, stating that the increased production underscores the commitment of the company’s staff and its continuous efforts to enhance production processes and maintenance.

Aiboni also acknowledged the support of the Nigerian National Petroleum Company Limited and SNEPCo’s co-venture partners, including TotalEnergies Nigeria Limited, Nigerian Agip Exploration, and Esso Exploration and Production Nigeria Limited.

The Bonga field, which commenced production in November 2005, operates through the Bonga Floating Production Storage and Offloading (FPSO) vessel, with a capacity of 225,000 barrels per day.

Located 120 kilometers offshore, the FPSO has been a key contributor to Nigeria’s oil production since its inception.

Last year, the Bonga FPSO reached a significant milestone by exporting its 1-billionth barrel of oil, further cementing its position as a vital asset in Nigeria’s oil and gas sector.

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