Connect with us

Business

Dangote accuses IOCs of frustrating refinery

Published

on

 

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.

Continue Reading
Advertisement

Business

Correcting the Lies in Dr. Olisa Agbakoba’s Assertions By Kingsley Ariamaodo

Published

on

Correcting the Lies in Dr. Olisa Agbakoba’s Assertions By Kingsley Ariamaodo

Correcting the Lies in Dr. Olisa Agbakoba’s Assertions
By Kingsley Ariamaodo

 

 

Eminent lawyer and Senior Advocate of Nigeria, Dr. Olisa Agbakoba, has lately been calling for the repeal of the Petroleum Industry Act 2021 which is within his rights as a citizen. But in doing so, he has been making some assertions regarding the status and operations of the NNPC Ltd that are not quite true.

 

Correcting the Lies in Dr. Olisa Agbakoba’s Assertions
By Kingsley Ariamaodo

This is not an attempt to join issues with him. It is just to set the records straight, knowing that when falsehood is left unchallenged, it is accepted as the truth.
One of the key reasons he claims to be calling for the repeal of the PIA is that under it, NNPC Ltd is playing the roles of an operator and a regulator. When pressed to be specific on the regulatory roles being performed by the NNPC Ltd, he listed “fixing prices of petroleum products” and “acting as sole importer of petroleum products”.

 

 

 

The truth, however, is that the PIA does not have any provision that makes NNPC Ltd a regulator in the oil and gas industry. The PIA specifically provides for the establishment of two regulators in the industry. They are: The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
One of the objectives of the reforms that the PIA was designed to bring about was the scrapping of the dual roles of operator and regulator played by the NNPC as a government Corporation. Since the PIA came into force in 2021 and the consequent transition of NNPC into a limited liability company that operates under the Companies and Allied Matters Act in 2022, the Company has ceased to take on any regulatory role in strict compliance with the law.
Contrary to the learned Senior Advocate’s claim that NNPC Ltd fixes prices of petroleum products, the Company does not fix prices. In fact, no agency or entity unilaterally fixes prices of petroleum product as the PIA in Sections 205, 206 and 207 provides for a deregulated market which is currently in operation in the Downstream Sector. Under the deregulated market, every marketer is allowed to determine the price of its products as it deems fit, taking market forces into consideration. Based on this principle, NNPC Ltd through its Downstream subsidiary,

 

 

NNPC Retail Ltd, fixes the prices of its products. It does not fix prices for the entire market as other marketers are at liberty to set their own prices based on market realities. This is the reason NNPC Retail stations in Abuja sell Premium Motor Spirit (PMS) at N617 per litre while other marketers sell at various prices. Similar conditions prevail across the country with different marketers selling petroleum products at different prices. If the sector was still regulated, it would be the duty of the NMDPRA to fix prices and not NNPC Ltd as a player in the industry.

 

 

 

On the claim that NNPC Ltd is the sole importer of petroleum products, this is also not true. Other marketers import AGO and ATK (diesel and aviation fuel). The reason they are not able to engage in the importation of PMS has to do with foreign exchange issues. But the PIA, apparently envisaging situations like this, provides that NNPC Ltd should serve as a supplier of last resort to guarantee energy security. This is very explicit in Section 64 of the PIA. That is the reason NNPC Ltd is currently the sole importer of PMS (not all petroleum products), and that does not in any way make it a regulator.
NNPC Ltd has since moved on to assume its statutory role as a commercial operator in the entire value chain of the energy industry. It has further sealed its status as a commercial operator with declaration of ₦2.52 trillion and ₦674 billion profit after tax in 2021 and 2022 respectively.

 

 

We believe that even if other members of the public, out of ignorance, still see NNPC Ltd as a regulator based on its previous operations pre-PIA, it should not be a learned silk like Dr. Agbakoba who should be familiar with the law.

Mr. Ariamaodo, writes in from Abuja.

Continue Reading

Business

Adron Is The Biggest: A Growing Initiative In Nigeria’s Real Estate Market

Published

on

Adron Is The Biggest: A Growing Initiative In Nigeria’s Real Estate Market

Adron Is The Biggest: A Growing Initiative In Nigeria’s Real Estate Market

 

Pioneering affordable housing solutions in Nigeria, Adron Homes and Properties remains a leading name in the real estate sector. Since its inception in 2012, Adron Homes has consistently redefined the real estate landscape, achieving significant milestones and breaking barriers that have set new benchmarks in the industry. Through its innovative approach, the company has become synonymous with quality, reliability, and customer satisfaction.

 

Adron Is The Biggest: A Growing Initiative In Nigeria’s Real Estate Market

Having built a strong foundation of exceptional service, the organization has not only achieved unparalleled growth but also made significant progress and created a reputable name for itself. This is evident in its groundbreaking estates and modern architectural designs imbibed by the real estate company. Adron Homes has transformed the concept of affordable housing, ensuring that quality is not compromised while making homeownership dreams a reality for many Nigerians.

 

 

With over 48 estates, strategically positioned in about 9 states with numerous locations across Nigeria, Adron Homes has upheld its 2024 mantra of being the biggest and hopes to set a record as the most successful real estate developer in Nigeria. These estates are designed with the residents’ comfort and convenience in mind, offering a range of amenities that cater to their needs. Each estate is a testament to the company’s dedication to creating sustainable and livable communities.

Fueled by hard work, with a commitment to excellence and innovation, the organization is well acquainted with the concept of quality and reliability. Adron Homes’ growth can be attributed to its unwavering dedication to maintaining high standards and constantly improving its offerings. The company’s focus on customer satisfaction has earned it a loyal clientele and numerous accolades in the real estate industry.

Through strategic initiatives such as their 10/10 Vidco plot series offer and a customer-centric approach, Adron Homes continues to expand its footprint across Nigeria, delivering services and products that exceed market expectations and set the pace for other real estate developers. The 10/10 Vidco plot series is an innovative scheme that allows customers to own plots of land with flexible payment options, making it easier for more people to invest in real estate.

Adron Homes understands the importance of accessibility and affordability in real estate. By offering flexible payment plans and various promotional offers, the company ensures that homeownership is within reach for a broader segment of the population. This inclusive approach has not only boosted Adron Homes’ market presence but also strengthened its reputation as a customer-friendly and socially responsible organization.
The “Adron Is The Biggest” initiative underscores the company’s dedication to pushing boundaries and setting new standards of excellence in real estate development. This initiative is not just a slogan; it represents Adron’s commitment to continuous improvement and innovation. By leveraging cutting-edge technology and adopting best practices, Adron Homes is redefining the real estate landscape in Nigeria.

The real estate company’s unwavering commitment to delivering superior developments and creating lasting value for all clients and stakeholders is evident in every project it undertakes. The company’s estates are designed with modern architectural aesthetics and functionality, ensuring that they meet the highest standards of quality and sustainability. Adron Homes invests in the latest construction technologies and materials, ensuring durability and efficiency in all its developments.

Adron Homes takes pride in offering a wide range of amenities that enhance the living experience of its residents. These amenities are designed to cater to various needs and preferences, making Adron estates desirable places to live. Here are some of the key amenities available in Adron Homes estates:
1.     Recreational Facilities: Modern gyms, swimming pools, and sports complexes for fitness and leisure activities. These facilities provide residents with opportunities to maintain an active and healthy lifestyle.
2.     Green Spaces: Beautifully landscaped gardens and parks that provide a serene environment for relaxation. These green spaces offer residents a peaceful retreat from the hustle and bustle of city life, promoting mental well-being and community bonding.
3.     Security: 24/7 security services, CCTV surveillance, and gated communities ensuring the safety of residents. Adron Homes prioritizes the safety and security of its residents, implementing robust security measures to create a secure living environment.
4.     Educational Institutions: Proximity to quality schools and educational centers. Adron estates are strategically located near reputable educational institutions, making them ideal for families with school-going children.
5.     Healthcare Facilities: Access to top-notch healthcare services and hospitals. Residents have peace of mind knowing that quality healthcare services are within reach in case of emergencies.
6.     Shopping Centers: Convenient shopping malls and retail outlets within the estates. These shopping centers provide residents with easy access to essential goods and services, enhancing their convenience and quality of life.
7.     Infrastructure: Well-paved roads, reliable electricity, and efficient water supply systems. Adron Homes ensures that its estates are equipped with the necessary infrastructure to support a comfortable and modern lifestyle.
8.     Community Centers: Spaces for social gatherings, events, and community activities. These centers foster a sense of community and belonging among residents, encouraging social interaction and engagement.

Moreso, Adron Homes has several upcoming projects that promise to redefine urban living and affordable housing spaces across Nigeria. One such project is the Snowfall Park and Gardens in Jos, Atlantic Park and Gardens in Sagamu, and Moscow Parks and Gardens in Ibadan which is set to become a landmark development in the respective regions. This project will feature state-of-the-art amenities and innovative design concepts, further solidifying Adron Homes’ position as a leader in the real estate industry.

Adron Homes’ expansion plans are driven by its vision of providing quality housing solutions to a larger population. By entering new markets and exploring untapped opportunities, the company aims to extend its reach and impact more lives. Adron Homes’ growth strategy is centered on sustainability and community development, ensuring that its projects contribute positively to the socio-economic landscape of Nigeria.

It is worthy to say, that Adron Homes and Properties has established itself as a formidable force in the Nigerian real estate sector. Through its commitment to excellence, innovation, and customer satisfaction, the company has achieved remarkable success and set new standards in the industry. The “Adron Is The Biggest” initiative is a testament to the company’s dedication to growth and excellence.

With a strong focus on quality, reliability, and community development, Adron Homes continues to lead the way in providing affordable and sustainable housing solutions. As the company embarks on new projects and expands its reach, it remains steadfast in its mission to create lasting value for its clients and stakeholders. Adron Homes is not just building houses; it is building communities, fostering growth, and shaping the future of real estate in Nigeria.

Continue Reading

Business

Empowering Philanthropic Youth: Making a Difference in the World

Published

on

 

 

Introduction:
Dear Tijani Olumide,

In a world full of challenges, your commitment to making a positive impact is truly inspiring. Your desire to create meaningful change and improve the lives of others is a testament to your compassion and drive. As a young philanthropist, you have the power to shape the future and leave a lasting legacy. This article aims to encourage you to continue your philanthropic journey and explore new ways to make a difference.

Understanding the Power of Philanthropy:

Philanthropy goes beyond monetary contributions; it embodies a mindset of empathy, compassion, and action. By engaging in philanthropic endeavors, you have the ability to address societal issues, support causes close to your heart, and uplift communities in need. Your actions, no matter how small, can create a ripple effect of positive change and inspire others to follow in your footsteps.

Leveraging Your Youth and Energy:

Being a young philanthropist gives you a unique advantage. Your fresh perspective, innovative ideas, and boundless energy can breathe new life into traditional approaches to philanthropy. Embrace your youth as a strength and use it to challenge the status quo, finding creative solutions to complex problems. Your enthusiasm will inspire others to join your cause and contribute to a better future.

 

Nurturing Lifelong Learning:

Philanthropy is a journey of continuous learning and personal growth. As a philanthropist youth, it is essential to invest in your own education and development. Explore diverse causes, engage with local communities, and seek opportunities to expand your knowledge through workshops, conferences, and mentorship programs. By broadening your understanding of social issues, you can become a more effective advocate and catalyst for change.

Collaboration and Networking:

Collaboration is key to amplifying your impact. Connect with like-minded individuals, organizations, and fellow philanthropists who share your passion for creating positive change. Collaborative efforts enable you to leverage collective resources, expertise, and networks, leading to more significant and sustainable outcomes. By building strong relationships, you can create a network of support and inspiration that will fuel your philanthropic endeavors.

Embracing Technology for Good:

In today’s digital age, technology offers unprecedented opportunities to drive social change. Explore innovative platforms, crowdfunding websites, and social media channels to amplify your message and reach a broader audience. Embrace emerging technologies such as artificial intelligence and blockchain for social good initiatives. By harnessing the power of technology, you can scale your impact and inspire others to join your cause.

Conclusion:
Dear Tijani Olumide, your dedication to making a difference is commendable. By continuing to embrace philanthropy, nurturing lifelong learning, collaborating with others, and harnessing the power of technology, you have the potential to create lasting change in the world. Remember, every action, no matter how small, has the power to make a significant impact. Keep inspiring others through your passion, kindness, and unwavering commitment to building a better future. The world needs more young philanthropists like you.

Together, let us shape a world where compassion and generosity thrive.

Continue Reading

Cover Of The Week

Trending