Business
Dangote Optimistic Projected $30bn Revenue Will Boost Naira Value
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President of Dangote Group, Aliko Dangote, on Sunday declared that his company’s aim is to become the leading supplier of Foreign Exchange in the domestic market soon.
This is even as his company targets $30 billion in revenues by the year 2025.
Dangote bared his mind during a tour of the Dangote Petroleum Refinery & Petrochemicals and Dangote Fertiliser Limited with media executives at the weekend.
According to him, the plan is to attain independence from the Central Bank of Nigeria (CBN) in forex sourcing, highlighting a strategic shift in revenue composition within the cement business from the current 75 percent to 15 percent in the future.
The expected significant inflow of forex into Nigeria through his businesses, will automatically boosts the value of our local currency and make Naira regain its value in the comity of international currencies all over the world.
ALSO READ: Shell Nigeria Explores Opportunities With Dangote Refinery
He maintained that the refinery began full operations in 2024, initially focusing on refining intermediate products such as polypropylene, naphtha, RCO, gasoline, diesel, and jet fuel.
He explained that the refinery entered its steady-state production phase in March 2024.
Additionally, he anticipates production ramping up to 500,000 barrels per day (bpd) with 15 crude cargoes per month by August, increasing to 550,000 bpd by the end of the year, and aiming for 650,000 bpd by the first quarter of 2025.
“Petrol production is to commence in July with sales from August,” assured Dangote.
Dangote also hinted that the group intends to list both Dangote Petroleum Refinery & Petrochemicals and Dangote Fertilizer Limited on the Nigerian Exchange Group in the first quarter of 2025.
He said that this initiative would enable Nigerians to participate in the ownership of these companies.
“Due to the nature of our business with both the refinery and the fertilizer, we are aiming to list them by the end of this year. However, depending on circumstances, worst-case scenario, we anticipate listing them before the end of the first quarter of next year. This will allow us to offer shares for sale and enable Nigerians to participate as shareholders,” Dangote stated.
The Dangote Refinery, which will process 650,000 barrels per day (BPD) at full capacity, stands as Africa’s largest oil refinery and the world’s largest single-train facility, while the Dangote Fertiliser Limited operates Africa’s largest Granulated Urea Fertiliser complex. Presently, Dangote Cement is Nigeria’s most capitalised company.
While noting that the total storage capacity of the refinery is 4.5 billion litres, sufficient to cover 20 days of Nigeria’s crude requirement and store products equivalent to 15 days of Nigeria’s petrol consumption, he stressed that the refinery would produce 53 million litres of petrol per day and 1.1 million tonnes per day.
He added that the refinery is equipped with dedicated loading gantries featuring 86 loading bays, alongside specialized marine facilities for the offloading of crude and the loading of petroleum products.
Additionally, the facility, he said, includes a 900-kilotonne per annum polypropylene plant, with production capacities of 36,000 tonnes per annum for sulphur and 585,000 tonnes per annum for carbon black.
He pointed out that over the past four decades, the operations of the Dangote Group have evolved significantly from a commodity trading company to a diversified conglomerate.
Dangote emphasised that this transformation was driven by the overarching goal of achieving self-sufficiency in key sectors and bolstering Nigeria’s economy.
He noted that the group, which began as a trading company in 1978, has expanded into a diversified conglomerate with investments spanning cement, agriculture, fertilizer, petrochemicals, oil & gas, auto assembly, infrastructure, and other sectors.
He said the group is driven by the idea that Africa’s future prosperity hinges on its ability to harness its own resources and capabilities. Dangote stressed that the continent inadvertently imports poverty and exports jobs by exporting raw materials and importing finished goods.
The Vice President, Oil and Gas, Dangote Industries Limited, Devakumar Edwin, reiterated the commitment of the company in enhancing local capacity in critical sectors of the economy.
He said Dangote Industries Limited has empowered young Nigerians to assume key roles across its operations, with many even becoming expatriates in other nations.
Edwin stressed the refinery’s status as the world’s largest single train complex constructed entirely by a Nigerian company, highlighting a significant achievement in local engineering and construction capabilities.
Noting that most refineries were built by foreign companies, he said it is a thing of pride that a Nigerian company, acting directly as Engineering, Procurement, and Construction (EPC) contractor, designed and built the world’s largest single train refinery complex. He said this has enhanced the capacity of many Nigerians involved in the process and that a Nigerian company can build a refinery anywhere in the world.
“It is a thing of pride that the largest single train refinery in the world is 100% designed, engineered, and constructed by a Nigerian company as EPC contractor,” he said.
While expressing gratitude to the media executives, Group Executive Director of Commercial Operations at Dangote Industries Limited, Fatima Dangote, reiterated the company’s dedication to creating a positive impact on the economy. She commended Aliko Dangote’s steadfast commitment to advancing the continent’s development.
“He (Dangote) is committed to ensuring the success of Nigeria and Africa as a nation and a continent. Our focus extends beyond profit to solving problems and achieving self-sufficiency across all sectors in Africa. By meeting global standards, we have positioned ourselves to export our products to every continent in the world,” she said.
Fatima pointed out that the group is not only the largest private employer of labour but also consistently ranks as one of the top taxpayers in the country each year, adhering to all relevant tax laws and regulations.
“We are known as one of the largest employers of labour. However, we are also conscious of ensuring our workers enjoy a good living standard. This is reflected in our inclusion in the list of top paying firms in the country. Our impact on employment generation extends to creating thousands of indirect jobs in the various communities that we operate in,” she added.
Business
Bolt Bans Nigeria-South Africa Rides Amid Social Media Prank
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Online taxi service Bolt has restricted “inter-country” ride requests between Nigeria and South Africa following a social media-driven prank that led to widespread abuse.
The prank involved users booking and then canceling rides in the other country, causing drivers to waste time and fuel searching for non-existent passengers.
Munyaradzi Chinyama, a Zimbabwean Bolt driver in Cape Town, reported that he received three such requests before realizing they were fake.
Read Also: Bolt Blocks Accounts Over Nigeria-S/Africa Ride Prank
He described the experience as costly and frustrating.
Recall that Bolt had on Thursday, identified and blocked the users responsible for the prank.
The company acknowledged the negative impact on its drivers in both countries and confirmed that inter-country requests will continue to be available between other nations.
Chinyama also reported receiving insulting messages through the Bolt app, including being called “Mandela’s son.”
The origin of the prank is unclear, but it reflects a history of trolling between social media users in the two countries.
One user on X mentioned that the prank started as a response to perceived disrespect.
Business
BREAKING: NNPC Ltd Clears Air On OVH Acquisition
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The Nigerian National Petroleum Company (NNPC Ltd) has cleared the air on the acquisition involving OVH and NNPC Retail Ltd.
This follows allegations of wrongdoing, levelled by the Presidential Candidate of the Peoples Democratic Party (PDP) in Nigeria’s 2023 election.
ALSO READ: We’re Selling Petrol At Half The Landing Cost, Which Is Not Subsidy – NNPC
This was disclosed in a statement in Abuja on Thursday, by the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye.
Writing under the subject ‘OVH Acquisition: The Facts, by NNPC Ltd’, Soneye explained that the state oil major is professionally run.
He wrote, “The attention of NNPC Ltd. has been drawn to a press release signed by Mr. Paul Ibe, a Media Adviser to the former Vice President, Alhaji Atiku Abubakar.
“In the statement, the former Vice President was quoted to have lamented “the criminal hijack of the NNPC by corporate cabals around the current President”.
“He was also quoted to have listed the retention of Mr. Mele Kyari as the Group Chief Executive Officer of NNPC Ltd as a compensation for the alleged acquisition of NNPC Retail Ltd. by OVH in which he claimed Mr. Wale Tinubu held 49% stake.
“He further alleged that the NNPC Retail Ltd — OVH acquisition deal was part of a grand scheme by President Bola Ahmed Tinubu to integrate his personal business interests into Nigeria’s public enterprises at the federal level.
“NNPC Ltd. wishes to set the records straight with the following facts:
“1. We are a commercially-focused and profit-driven company managed by professionals who are committed to adding value to the nation.
“2. Investment decisions by NNPC Ltd. Management are strictly determined on the basis of commercial viability and national interest.
“3. At the time NNPC Ltd. acquired OVH in 2022, Oando (in which Mr. Wale Tinubu has equity interest), had fully divested its equity in OVH to the other partners – Vitol and Helios. Oando actually began its divestment in 2016, with Vitol and Helios coming in as equity partners, leading to the change of name from Oando to OVH. In 2019, Oando fully divested its equity interest in OVH resulting in Vitol and Helios holding 50% equity interests, respectively.
“4. Upon acquisition of OVH by NNPC Ltd, both NNPC Retail Ltd. and OVH effectively became subsidiaries of NNPC Ltd. However, based on professional advice and sound commercial considerations, NNPC Ltd. opted to merge NNPC Retail Limited into OVH, and thereafter retain NNPC Retail Limited as the company name post-merger.
“5. The first step of merging NNPC Retail Ltd. into OVH has been completed and the post-merger renaming as NNPC Retail Ltd. is ongoing.
“6. Contrary to the false alarm raised, neither Wale Tinubu nor the President has any interest in the OVH acquisition.
“7. As a businessman, the former Vice President should know that effectiveness in business leadership is best measured by balance sheets and bottom lines rather than pedestrian considerations.
“8. The management of NNPC Ltd., under the leadership of Mr. Mele Kyari, has done very well in growing the company’s fortunes as shown in the 2023 Audited Financial Statement (AFS), where it reported N3.3 trillion as profit after tax.
“9. NNPC Ltd. as a commercial entity is devoid of political interest and shall continue to conduct its business full of commitment to national interest and value creation for the benefit of all stakeholders. NNPC Ltd. shall resist any attempt to draw its Board and Management into partisan politics.”
Business
NBA Backs Domestic Refining To Address Fuel Scarcity
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The Nigerian Bar Association (NBA) has called for the full implementation of the directive of President Bola Ahmed Tinubu on the supply of crude to the local refineries in Nigeria.
The President of NBA, Yakubu Maikyau, is of the view that the establishment of the refineries were both nationalistic and patriotic endeavour, for which he urged the Federal Government and Nigerians to support the Dangote Petroleum Refinery to end the reign of fuel scarcity and perennial queues at filling stations in the country.
Maikyau led other leaders and members of the association on a visit to the facility, praised the President/Chief Executive of the Dangote Group, Aliko Dangote, for remaining steadfast despite the opposition faced.
ALSO READ: Delay In Crude Supply To Dangote Refinery Poses Risk To Nigeria’s Economy – EIU Report
They expressed concern that the major project was encountering strong resistance from fuel importers, who had stifled the economy and kept it reliant on imported refined petroleum products, despite Nigeria’s status as a leading crude oil producer.
Maikyau said, “What I have seen today gladdens my heart, but at the same time, my heart is bleeding because of the neglect and opposition that such a laudable effort is facing. It is shameful, but as I mentioned to the President of the group, his continued steadfastness and resilience despite the opposition show that there is hope for this country.
“I would describe Aliko Dangote as both a freedom fighter and an economic warrior. There is no one more honourable or patriotic than Dangote. He has proven this through his actions, not just words. This isn’t about what someone might tell you; we have witnessed the enormous investments he has made in this country.”
He urged the Federal Government to create a supportive environment for the refinery, aiming to transform Nigeria into a net exporter of refined petroleum products and to alleviate the severe hardships caused by fuel scarcity.
He lamented that the refinery had to import crude and export refined products due to opposition from local players.
“I want to use this opportunity to call on the Federal Government to pay deliberate and conscious attention to what Dangote is doing. Anyone serious about turning around the fortunes of this country cannot ignore Dangote’s efforts. This is a people-centered investment that must be supported. This is the type of investment we need, and wherever such investments exist in this country, we urge the government to create an enabling environment for the benefit of the people.
“If we establish a supportive environment for this refinery to operate, we will eliminate the queues on our streets and resolve the difficulties associated with the scarcity of petroleum products. However, we will need the government to demonstrate a willingness to support this crucial venture. We have a facility here that can compete with the best in the world, but unfortunately, it is not receiving the support and recognition it deserves. It is disgraceful that with a refinery of this capacity, where 86 tankers can be loaded at once, we still face fuel shortages,” he added.
Vice Chairman of the Epe Branch of the NBA, Ivo Takor, who praised the location of the refinery in the Ibeju-Lekki-Epe axis, said that the project has the potential to resolve the long-standing issue of fuel importation, create jobs, boost foreign exchange, and save the country money currently spent on subsidising petroleum products.
“The refinery is something every Nigerian should be proud of. It is a project that will move Nigeria away from its long-standing issue of fuel importation, which comes with its own set of problems. Currently, we are dealing with fuel scarcity and long queues. I believe that once this refinery is fully operational, these challenges will be resolved. Additionally, the refinery has the capacity to export some of its products, bringing foreign exchange into the economy. It will also reduce the government’s expenditure on subsidies, allowing funds to be redirected towards improving infrastructure, education, and the health sector. Since its construction, many jobs have been created, and further job creation will follow when it becomes fully operational,” he said.
He, however, noted that despite these benefits, there are some entrenched cartels against the full operation of the refinery. While praising President Bola Tinubu for directing the supply of crude to both the refinery and modular refineries across the country, he emphasised the need for stringent monitoring to ensure compliance.
He stressed that withholding crude from the refinery constitutes sabotage against the nation and should be met with appropriate sanctions.
“Unfortunately, it appears that there is a well-established cartel working against the full operation of this refinery, specifically those who do not want to supply it with crude oil. It is illogical for Nigeria to export crude oil while the refinery also imports crude. This situation reflects the interests of entrenched forces who benefit from fuel importation, which negatively impacts the people and the economy. Fortunately, the president has issued a directive regarding the supply of crude to the refinery. However, beyond this directive, it is crucial to ensure compliance. Those who do not comply should face adequate sanctions, as failure to do so constitutes sabotage not only against the refinery but against the economy as well,” he said.
The Vice President (Oil & Gas) at Dangote Industries Limited, Devakumar Edwin, informed the delegates, that the refinery was established primarily to source and refine local crudes for the benefit of Nigeria, while also exporting excess production to boost the economy.
Edwin noted that the lack of sufficient Nigerian crude supplies has necessitated importing crude from other countries and continents while exporting refined petroleum products abroad.