Economy
Refinery: How Dangote Chose Nigeria Over Saudi Arabia, UAE
By Adedapo Adesanya
The Vice-President of Dangote Industries Limited, Mr Devakumar Edwin, has claimed that the $20 billion Dangote Refinery in the Lekki area of Lagos State, Nigeria, could have cited in Saudi Arabia or the United Arab Emirates (UAE) but the owner, Mr Aliko Dangote, decided to establish it in his home country.
He made this disclosure when a coalition of 28 Civil Society Organisations (CSOs) recently visited the facility, which can refine 650,000 barrels of crude per day.
The group was set up to monitor the compliance of the Nigeria National Petroleum Company (NNPC) Limited to the presidential directive to sell crude oil to Dangote Refinery in Naira.
Recall that last week, President Bola Tinubu directed the NNPC to sell crude oil to the refinery and others in local currency.
He described Dangote Refinery as a value-adding facility as it would stop the exportation of Nigeria’s crude and importation of finished products and wondered why the government would be against such a vision for Nigeria.
He said the disposition of the NNPC Limited and the regulatory agencies was a clear indication that they deliberately held down the nation’s refineries so that they could continue importing petroleum products.
According to him, many African countries have minerals but do not add value to their economies because those minerals are exported raw and the finished products are imported back into the country whereas vice versa should have been the order of the day.
“This is what Dangote refinery seeks to correct, we did the same in the cement and sugar sectors where Nigeria was a leading importer of those products and with the coming of Dangote leading the backward integration programme of the government, others came into the sector and together Nigeria now exports cement to other countries.
“What we want to do in Refinery, we have done it other businesses, Nigeria used to be the biggest importer of sugar, we came in and changed the narrative. We led the backward integration scheme of the federal government, and we now produce sugar locally for domestic consumption and others have joined us. We did the same in Cement by opening up a production plant and today Nigeria exports cement to other countries.
“In a business, no one was interested in investing in, Dangote delved into it determined to ensure Nigeria no longer imports fuel, invested massively and came up with the world’s largest single train refinery.
“He said he would not take his money to Dubai or Swiss banks as others are doing, he decided to invest at home and now they are saying he wants to create a monopoly.
“We didn’t ask for any favour other than that we want to buy crude to produce, first they said there was no crude, later they said we would have to pay some dollars above the prevailing crude market price. And this is a global market where you can track crude prices anytime.
“We resorted to buying crude from Brazil and the United States. Later they said we should not be announcing the price of the products.
“Even the US, the leading proponent of a free market economy protects its local industries by imposing huge duties on imports just to protect local industries. This is a man that Saudi Aramco once approached to come and cite his refinery in Saudi Arabia, promising a steady supply of cruse.
“Abu Dhabi also invited him to do the same on their soil but he rejected insisting he would build at home, now he did that and a facility that is supposed to add value to Nigeria’s economy is being frustrated,” he said.
Speaking on behalf of the CSOs, Mr Solomon Adodo of the Rise Up for A United Nigeria said what his group had seen was a world-class facility and wondered how a regulatory agency of the government could take sides with importers of petroleum products when a local refinery is now available to bail the nation out of the forex quagmire which has made the price petroleum products to skyrocket.
He disclosed that the CSOs have concluded to petition the Presidency on the need to adopt Dangote Refinery as a national asset that should be used to liberate the country from the shackles of importation of fuel while it exports crude.
“We are ready to defend this facility with everything as civil society organizations. We are not speaking on our behalf but on behalf of all Nigerians and on behalf of our fatherland. It leaves much to be desired how an agency of government with oversight function to guide to grow such a project as this would now be disparaging same project. This is too bad.
“We have seen for ourselves and we have cleared all doubt as to the completion of this refinery and the readiness to supply all our domestic needs. We will expose them all. Anyone who is not ready to ensure Nigerians have a new lease of life must give way. Now it is a fight to finish.
“Going forward, we are going to set up a situation room to monitor the compliance of the NNPCL with the directive of Mr President that Dangote Refinery would be supplied with Crude in Naira because we know that the enemies of the people would want to adopt another strategy to sabotage the presidential directive.
Mr Adodo said that the CSOs would mount serious advocacy to make the government accede to the demands of Nigerians which is not just granting the sale of crude to Dangote Refinery in Naira but also ensuring Dangote fuel is available at petrol stations for Nigerians to buy.
The group appealed to the management of Dangote Refinery not to be discouraged but to trudge on as the group would mount a serious campaign in favour of the refinery.
“Even if it means we should protest, we will. We can’t allow this international embarrassment to stand.”
He also argued that all the claims about monopoly against Dangote Refinery were wrong.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
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