Connect with us

Company News

Dangote Refinery Controversy: Safety, Quality, and Financial Woes Unveiled

Tension Between Aliko Dangote and NNPC Raises Concerns Over Nigeria’s Oil Industry

Published

on

The Dangote Refinery, an ambitious project by Africa’s wealthiest man, Aliko Dangote, has found itself engulfed in a whirlwind of controversy, pitting Dangote against the Nigerian National Petroleum Corporation (NNPC).

This recent dispute, marked by safety concerns, incomplete construction, and financial woes, has left many questioning the ethics, quality, and viability of Africa’s largest refinery.

Sources close to the situation reveal that Aliko Dangote is seeking the elusive license to commence operations, the final crucial step before production can begin at the refinery.

However, the NNPC, Nigeria’s regulatory body, has balked at granting the license due to legitimate safety concerns, chiefly stemming from the incomplete status of the facility.

Also, Dangote’s bid to purchase crude oil from the NNPC was met with a firm denial, citing the refinery’s incomplete status as a deterrent. This has sparked allegations that Dangote may be considering unconventional methods, such as sourcing Nigeria’s crude through trading houses, which could be viewed as circumventing established procedures.

Even if Dangote manages to secure the necessary crude oil, concerns regarding safety and product quality persist. Workers within the Dangote Group, as well as contractors and some NNPC officials, have voiced apprehensions about commencing refinery operations prematurely.

The current state of the refinery only allows for the initial phase of crude distillation, a process akin to operations found in illegal refineries within the Niger Delta region. The unfinished catalytic cracking unit further amplifies worries about the quality of refined products.

Amid these concerns, it appears that Dangote’s motivations may be driven by financial pressures. Reports suggest that the Dangote Group is grappling with substantial debt, potentially jeopardizing the company’s stability if it fails to secure additional funds for loan repayments by December. This financial strain could be the driving force behind Dangote’s eagerness to obtain the operating license, even without the refinery being fully ready.

Recalling events from earlier this year, the uncompleted refinery was hastily commissioned by former President Buhari. This move aimed to grant Dangote access to additional equity funding from the Nigerian Government and secure a crude oil allocation of 300,000 barrels per day. This allocation was intended to be sold to raise funds for creditors and aid in completing the refinery.

However, when the new administration of President Tinubu took office, it was discovered that the refinery was far from completion, raising suspicions that it was falsely commissioned to secure the crude allocation for export.

The ongoing standoff between Aliko Dangote and the NNPC illuminates broader issues surrounding safety, quality, and financial stability plaguing the Dangote Refinery project.

Continue Reading
Comments

Company News

Dangote Petroleum Refinery Set to Make History with Public Listing on NGX

Published

on

Dangote refinery

Aliko Dangote, the president and chief executive of Dangote Industries Limited, has announced plans to publicly list the subsidiary, Dangote Petroleum Refinery, on the Nigerian Exchange Limited (NGX).

Dangote expressed confidence in overcoming previous challenges related to crude oil supply, stating, “We have resolved all the issues with crude oil supply. We are now ready to move forward with our plans to list the refinery on the Nigerian Exchange Limited.”

The refinery, poised to commence operations in December, holds the promise of significant contributions to the Nigerian economy.

At full capacity, it is expected to produce 650,000 barrels of oil per day, with an initial rollout of 540,000 barrels daily.

The facility will produce 27 million liters of diesel, 11 million liters of kerosene, and nine million liters of jet fuel, sourcing crude from various Nigerian producers, including the state oil company.

A finalized deal for the delivery of the first cargo of approximately six million barrels next month signals the imminent realization of this ambitious project.

The refinery’s impact is anticipated to extend beyond the oil and gas sector, with projections suggesting significant cost savings for Nigeria by eliminating the need to import petrol.

Industry operators and government officials are optimistic about the transformative potential of the Dangote Refinery.

Akinwumi Adesina, President of the African Development Bank (AfDB), lauded the project as the best-industrialized initiative for Africa, projecting substantial savings for Nigeria and the continent as a whole.

As Nigeria’s largest refinery project, the facility has garnered praise from the Lagos Chamber of Commerce and Industry (LCCI).

Dr. Chinyere Almona, the LCCI Director-General, commended the visionary efforts of Aliko Dangote and the supportive federal government, emphasizing the refinery’s capacity to meet Nigeria’s refined petroleum product needs.

The impending listing on the NGX positions Dangote Petroleum Refinery as a catalyst for economic growth, energy security, and self-sufficiency in Nigeria and beyond.

Continue Reading

Company News

Aliko Dangote: Dangote Refinery Set to Commence Operations, Eyes 350,000 Barrels Daily

Published

on

Dangote and Akinwumi

In a recent interview with the Financial Times, Aliko Dangote, the President and CEO of the Dangote Group, announced that the long-anticipated $20 billion Dangote Refinery in Lekki, Lagos, is set to commence operations by refining 350,000 barrels per day.

Dangote revealed that a deal had been secured for the delivery of the first cargo of approximately 6 million barrels in December 2023.

He expressed confidence that the refinery could achieve its full capacity of 650,000 barrels per day by the end of 2024.

The Dangote Refinery, touted as the world’s largest “single train” facility with a singular distillation unit, is expected to significantly reduce Nigeria’s dependence on imported fuel and save billions in foreign exchange.

Dangote lamented the irony that Nigeria, a major oil producer for over 50 years, has struggled to refine its own crude adequately.

However, the project, which has faced delays and exceeded its budget by about $8 billion, has not been without challenges.

Dangote dismissed doubts about the refinery’s efficiency, stating that the challenges encountered during the project could have jeopardized his business empire.

He acknowledged being under intense pressure, facing allegations of underhand business practices and gaining unfair access to foreign exchange, which he vehemently denied.

Despite these challenges, Dangote expressed gratitude for overcoming the hurdles and reaching the destination.

The refinery is expected to generate substantial revenue, and plans are underway to eventually list it as a separate company on the Lagos stock exchange.

Continue Reading

Company News

Dangote Cement Advocates for Sustainable Cement Production Amid Rising Carbon Emissions

Published

on

Dangote Cement - Investors King

In a bid to address the escalating global concerns over carbon emissions, Arvind Pathak, the Group Managing Director of Dangote Cement Plc, highlighted the cement industry’s pivotal role in contributing to seven per cent of worldwide carbon emissions.

Speaking at the 12th Africa Cement Trade Summit in Abidjan, Cote d’Ivoire, Pathak emphasized the necessity for the industry to adopt sustainable practices.

Pathak acknowledged the energy-intensive nature of cement production, outlining the emissions generated throughout the value chain, from raw materials’ processing to the final product’s dispatch.

Dangote Cement, a significant player in the industry, has committed to decreasing carbon emissions through a strategic fuel substitution approach.

Pathak, represented by the Group’s Head of Sustainability, Dr Igazeuma Okoroba, advocated for the use of alternative fuels, such as municipal, agricultural, and industrial wastes, to reduce emissions.

He emphasized that these alternative fuels emit less CO2 when combusted, contributing to a more sustainable and environmentally friendly cement production process.

Despite the challenges posed by global climate shocks, Pathak stressed that decarbonization is not merely an option but a necessary strategy for future-proofing businesses.

Dangote Cement, as a pioneer in decreasing CO2 emissions, has leveraged sustainability reporting and received positive ratings for its climate change initiatives.

The adoption of alternative fuels aligns with the broader goal of addressing climate change concerns and reducing the cement industry’s environmental impact.

Pathak highlighted the need for clear and detailed decarbonization targets, emphasizing that companies must adapt to a rapidly changing world by embracing sustainable practices.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending