Business

Dangote accuses IOCs of frustrating refinery

Published

3 months ago

June 24, 2024

Dangote accuses NMDPRA of granting licences to operators to import dirty fuel

Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, has accused International Oil Companies in Nigeria of plans to frustrate the survival of the new Dangote Oil Refinery and Petrochemicals.

Edwin said the IOCs were “deliberately and willfully frustrating” the refinery’s efforts to buy local crude by hiking the cost above the market price, thereby forcing the refinery to import crude from countries as far as the United States, with its attendant high costs.

Speaking to journalists at a one-day training programme organised by the Dangote Group on Friday, Edwin also accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of granting licences indiscriminately to marketers to import dirty refined products into the country.

According to Edwin, the Federal Government issued 25 licences for the construction of refineries in Nigeria, but only the Dangote Group delivered on its promise.

While calling for the government’s support, the vice president noted that more than 3.5 billion litres of diesel and aviation fuel had been exported to Europe by the refinery in the past few months.

The exported fuel, it was said, represented about 90 per cent of its production.

“The Federal Government issued 25 licences to build refineries and we are the only one that delivered on our promise. In effect, we deserve every support from the government. It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 per cent of our production, have been exported. We are calling on the Federal Government and regulators to give us the necessary support to create jobs and prosperity for the nation,” Edwin stated.

He added that though the Nigerian Upstream Petroleum Regulatory Commission was trying its best to allocate crude oil for the 650,000-capacity refinery, “the IOCs are deliberately and willfully frustrating our efforts to buy the local crude.”

The Dangote official said the IOCs sometimes made the refinery pay $6 over and above the market price, saying this has forced the company to reduce its output as well as import crude from countries like the United States at a higher cost.

He said, “Recall that the NUPRC recently met with crude oil producers as well as refineries’ owners in Nigeria, in a bid to ensure full adherence to Domestic Crude Oil Supply Obligations as enunciated under section 109(2) of the Petroleum Industry Act. It seems that the IOCs’ objective is to ensure that our petroleum refinery fails. It is either they are deliberately asking for a ridiculous/humongous premium or they simply state that crude is not available. At some point, we paid $6 over and above the market price. This has forced us to reduce our output as well as import crude from countries as far as the US, increasing our cost of production.

“It appears that the objective of the IOCs is to ensure that Nigeria remains a country which exports crude oil and imports refined petroleum products. They (IOCs) are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their Gross Domestic Product, and dumping the expensive refined products into Nigeria – thus making us to be dependent on imported products. It is the same strategy the multinationals have been adopting in every commodity, making Nigeria and Sub-Saharan Africa to be facing unemployment and poverty, while they create wealth for themselves at our expense.”

“This is exploitation – pure and simple. Unfortunately, the country is also playing into their hands by continuing to issue import licences at the expense of our economy and at the cost of the health of the Nigerians who are exposed to carcinogenic products.”

It was said that even though Dangote is producing and bringing diesel into the market, complying with the regulations of the Economic Community of West African States, “licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian market.”

Edwin explained, “Since the US, European Union and the United Kingdom imposed a price cap scheme from February 5, 2023, on Russian petroleum products, a large number of vessels are waiting near Togo with Russian ultra-high sulphur diesel and they are being purchased and dumped into the Nigerian market.

“Some of the European countries were so alarmed about the carcinogenic effect of the extra high sulphur diesel being dumped into the Nigerian market that countries like Belgium and the Netherlands imposed a ban on such fuel being exported from its country, into West Africa recently. Sadly, the country is giving import licences for such dirty diesel to be imported into Nigeria when we have more than adequate petroleum refining capacity locally.”

He recalled that in May, Belgium and the Netherlands adopted new quality standards to halt the export of cheap, low-quality fuels to West Africa, harmonising its standards with those of the European Union.

These measures, according to Edwin, synchronised fuel export standards with the European domestic market, specifically targeting diesel and petrol with high sulphur and chemical content.

Historically, he recounted that these fuels with sulphur content reaching up to 10,000 ppm, were exported at reduced rates to countries like Nigeria and other West African consumers.

He mentioned that Belgium’s Minister of Environment, Zakia Khattabi, announced that his country followed the Netherlands, which in April 2023 also prohibited the export of low-quality petrol and diesel to West Africa via the ports of Amsterdam and Rotterdam.

He quoted Khattabi as saying, “For far too long toxic fuels have been departing from Belgium to destinations including Africa. They cause extremely poor air quality in countries such as Ghana, Nigeria, and Cameroon and are even carcinogenic.”

Edwin narrated that a September 2017 investigation by an international organisation, Public Eye, revealed that polluted and toxic fuels were being exported on a large scale from the ports of Rotterdam and Amsterdam for export to African markets.

He reiterated that as much as a quarter of the petrol and diesel available in West Africa originated from the ports of Amsterdam, Rotterdam, and Antwerp, stressing that these fuels contain sulphur and other pollutants, such as cancer-causing benzene, in quantities up to 400 times the limits permitted in Europe.

Edwin fumed, “The decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority in granting licenses indiscriminately for the importation of dirty diesel and aviation fuel has made the Dangote refinery expand into foreign markets. The refinery has recently exported diesel and aviation fuel to Europe and other parts of the world. The same industry players fought us for crashing the price of diesel and aviation fuel, but our aim, as I have said earlier, is to grow our economy.”

He noted that because the refinery meets the international standard as well as complies with stringent guidelines and regulations to protect the local environment, it has been able to export its products to Europe and other parts of the world.

While appealing to the Federal Government and the National Assembly to urgently intervene for speedy implementation of the PIA and to ensure the interest of Nigeria and Nigerians are protected, he remarked, “Recently, the government of Ghana, through legislation has banned the importation of highly contaminated diesel and PMS into their county.

“It is regrettable that in Nigeria, import licences are granted despite knowing that we can produce nearly double the amount of products needed in Nigeria and even export the surplus. Since January 2021, ECOWAS regulations have prohibited the import of highly contaminated diesel into the region.”

The PUNCH reports that the President of the Dangote Group, Aliko Dangote, had recently accused some powerful individuals of frustrating his refinery, adding that the IOCs were denying him access to crude oil.

“In a system where, for 35 years, people are used to counting good money, and all of a sudden, they see that the days of counting that money have come to an end, you don’t expect them to pray for you. Of course, you expect them to fight back.

“And I think that is the process that we’re now really going through. But the truth is that, yes, the country, the sub-region, and also the continent, of sub-Saharan Africa, need this refinery. So, you expect them to fight through non-supply of crude, non-purchase of the product, but I think it’s all temporary. We’ll get there,” Aliko added.

Dangote recalled that he was once persuaded by a former Minister of Energy in Saudi Arabia, Khalid Al-Falih, to shelve the idea of building a refinery. However, he said he told the former minister that he did not need his advice.

“Four years ago, I was in Saudi Arabia during the fasting period, and I was invited for the breaking of the fast, Dr Falih, who used to be the Minister of Energy invited me to come and break the fast with him and I went there. He just said, ‘Aliko, I heard that you’re planning on building a refinery, what capacity?’ I said 650,000. He kept quiet for a while and said, ‘You know just about 120km from Mecca, we are building one and I think I would like you to go and have a look. We as Saudi Aramco, are facing a lot of challenges and, we are proceeding with it, but my advice to you is not to do it because normally, refineries are built by major oil corporations or sovereign countries.’

“I said, ‘But Your Excellency, unfortunately, we have already started, so I’m not looking for advice.’ That was really how we continued,” he recounted.

Dangote revealed that both local and international cartels, which he described as “mafia”, made repeated attempts to sabotage the $19bn refinery project located in Lagos.

“Well, I knew that there would be a fight. But I didn’t know that the mafia in oil, they are stronger than the mafia in drugs. I can tell you that. Yes, it’s a fact,” he said.

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BUA Foods’ Shareholders Approve N5.50k Dividend, Commend 2023 Results

Published

1 day ago

September 27, 2024

Sahara Weekly

BUA Foods’ Shareholders Approve N5.50k Dividend, Commend 2023 Results

…BUA Foods Will Be Nigeria’s Biggest Flour, Pasta Milling Company In 2024 – Abdul Samad Rabiu

Shareholders of BUA Foods Plc (“BUA Foods” or “the Company”), at the 3^rd Annual General Meeting (AGM) held at the Transcorp Hilton Hotel, Abuja, on Thursday, 26 September 2024, approved the proposed final dividend payment of ₦5.50k per share.

The indigenous food manufacturing giant announced impressive financial performance as it recorded a revenue of ₦729.4bn, a 74.4% increase compared to the previous year. Profitability remained strong, demonstrating its resilience amidst evolving market dynamics, especially rising input costs. Profit after tax showed an impressive year-on-year growth, up 23%, from N91bn reported in 2022 to ₦112bn in 2023.

Addressing shareholders during the meeting, the Chairman of the Board, Abdul Samad Rabiu, thanked the shareholders for their undaunted commitment to the company’s shared vision. He mentioned that BUA Foods’ strategic focus on capacity expansion, and market penetration coupled with sound governance, yielded significant success.

He said: “Last year we successfully expanded and commercialised additional capacity in flour, pasta, and rice divisions, resulting in impressive volume growth across these divisions and overall strong business performance. With recent strategic agreements and new facilities planned for completion next year, we will become the country’s biggest pasta and flour milling company.

“Our performance is a testament to the resilience of our business strategies, underpinned by a culture of strong corporate governance. We are also focused on the optimisation of our internal processes to maintain excellence in a fast-changing world. With the dedication of our Management and staff, we will continue to deliver exceptional value to all stakeholders.”

Speaking further on growth ambitions, Rabiu said, “In 2024, we remain focused on accelerating efforts towards the completion of our Backward Integration Project in line with the extended Federal Government’s Sugar Master Plan 2.0, aimed at attaining self-sufficiency in the sugar sector.

“Additionally, we seek to further address key challenges in Nigeria’s rice production industry by enhancing local production, empowering farmers, and promoting sustainable practices. This project will contribute to food security, economic development, and environmental sustainability.”

Also commenting, the Managing Director BUA Foods, Engr. Ayodele Abioye (PhD), said, “Despite the challenging macroeconomic environment, we made good progress across key strategic pillars of expanding capacity, markets, products, and package offerings as well as expanding business capabilities with a focus on operational excellence, innovation, and sustainable growth.

“We will continue to leverage technology, innovation, and operational efficiencies to drive value creation and maintain a solid growth trajectory. We are committed to reinforcing our leadership as a home-grown food business with purpose.”

Speaking on the dividend pay-out, a shareholder, Mrs. Bisi Bakare, expressed her delight at the exceptional performance of the company.

She remarked, “We shareholders are very pleased today to receive a final dividend of N5.50 kobo from BUA Foods.

“I appreciate the board for putting smiles on our faces in this hard time. Declaring a N5.50k dividend despite the economic climate is very commendable and this has encouraged us to want to invest more.”

Another shareholder of BUA Foods, Farouq Muktar, commended the management for the year-on-year growth of the indigenous food manufacturing company.

He said, “I am very happy because of your commitment and the positive results we keep recording. This performance is highly commendable.

“We appreciate your strategic thinking which is one thing Nigerians need at this time. I commend BUA Foods management for always making us happy and not letting Nigerians down.”

In 2023, BUA Foods won several awards from reputable organizations. Among the awards won are Food Company of the Year, Innovative Indigenous FMCG Company of the Year Award, and Fastest Growing Food Manufacturing Company of the Year.

Business

JUST IN….. UNIPGC Executives visits Mayor Of Brampton ahead of the 2nd Edition of Global Peace Leadership Summit and Awards*

Published

2 days ago

September 26, 2024

Sahara Weekly

***JUST IN*…..**

UNIPGC Executives visits Mayor Of Brampton ahead of the 2nd Edition of Global Peace Leadership Summit and Awards

… In a notable diplomatic engagement, delegates of the United International Peace and Governance Council (UNIPGC) Canada Chapter paid a courtesy visit to His Worship, Patrick Brown, Mayor of Brampton, Canada on September 25, 2024.

During the visit, the UNIPGC delegation extended a formal invitation to Mayor Brown to attend the forthcoming event scheduled for October 25th, 2024, at the Brampton Conservatory Hall.

This highly anticipated event marks a significant milestone for UNIPGC Canada as it commemorates the UNIPGC CANADA inaugural ceremony, Commissioning of its operations, inaugurates its newly appointed Country Director and Investiture of other Executives into various offices.

The visit to the Mayor aimed to officially invite him to deliver the Welcome Address, where he will greet distinguished guests and dignitaries from around the world who will be present to witness this landmark occasion.

Notable figures expected to attend include *Her Excellency, Chief Dr. Jewel Howard Taylor*, former Vice President of Liberia, *H. E Amb. Dr. Marshall Jonathan Ojadah*-UNIPGC Global President, *Hon. Chambu Mwavita Permette* – DR Congo Minister Of Human Rights, *Hon. Kevin Uguru* – Member Of German Parliament, Berlin Germany, *HRH Queen Meenakshi Ravi* – Mrs Universe, Texas USA among others.

The event will underscore UNIPGC’s unwavering commitment to promoting international cooperation, peacebuilding, and good governance, while also spotlighting community empowerment initiatives both within Canada and globally.

For more info visit www.unipgc.org

Business

Idera Pathfinder Foundation Boosts Education Sector In Ogun

Published

2 days ago

September 26, 2024

Sahara Weekly

Idera Pathfinder Foundation Boosts Education Sector In Ogun*

…Donates Block of Classrooms, Educational Materials To Schools

Ogun State Commissioner for Finance and Economic Adviser, who is also the Co-founder of Idera Pathfinder Foundation, Mr. Dapo Okubadejo, has been commended for donating blocks of classrooms and furniture to his alma mater.

Commending the donor during the commissioning and handing over of the facilities to Moslem Primary Schools I and II, Isoku, Ijebu-Ode, Commissioner for Education, Science and Technology, Prof. Abayomi Arigbabu, informed that the donations which include, reconstruction of one block of four classrooms, fully equipped with 80 pairs of furniture and four teaching boards in School I, was an expression of passion for learners’ success.

Prof. Arigbabu added that one block of three classrooms, was also reconstructed and fully equipped with 60 pairs of furniture and three teaching boards in school II, to enhance conducive learning environment and promote quality teaching.

According to the Commissioner, the foundation also provided school bags and writing materials to all pupils in the two schools, commending the donor for supporting the ‘Adopt a School’ mantra of the present administration in the state.

“It is not common nowadays to see people giving back to their old primary schools; that is why I’m commending Mr. Okubadejo for this laudable gesture. The gesture will linger on in the minds of the pupils because it is engraved in their hearts already”, he said.

Prof. Arigbabu, while congratulating the management, staff and entire pupils of Moslem Schools I and II, charged them to put the facilities into good use, saying, “maintenance of projects encourages donors to do more”.

Earlier, Mr. Okubadejo, represented by his wife, who is also the co-founder, Mrs. Olufunke Okubadejo, noted that Idera Pathfinders Foundation is a non-political, non-religious and non-governmental organization established by Hon Oladapo and Mrs Funke Okubadejo to support the socio-economic and human capital development through targeted intervention in education and healthcare with a focus on the indigent, vulnerable communities and micro and small enterprises.

Mrs Okubadejo added that the foundation which has supported several people in the past is a movement dedicated to transforming lives, one step at a time seeking to bring peace, comfort and posterity to the society.

The Finance Commissioner, who was the Head Boy of the school in 1979, said the gesture was in memory of his mother, who was teacher in School I and later became a Head-teacher in School II, as well as expand the capacity of the schools for more enrolment drive, thereby raising future generations of educated and responsible people.

Appreciating the donor on behalf of other students, the Head Girl of the School II, Ibidapo Kafilat, expressed gratitude to the donors, promising to make judicious use of the facilities and writing materials.

Present at the commissioning exercise include The Onimoru of Imoru-Ijebu, Ogun State, Oba Munirudeen Adeposi, Commissioner for Education, Science and Technology, Prof Abayomi Arigbabu, Permanent Secretary in the ministry, Mrs Oluwatosin Oloko, Chief Olu Okuboyejo, a former Permanent Secretary in the state and Chairman, Ogun State Governor’s Elders Advisory Council, CDC/CDA and other notable dignitaries.