Business
OGUNCCIMA Commends Dangote Refinery’s Impact
The Ogun State Chamber of Commerce, Industry, Mines, and Agriculture (OGUNCCIMA) has applauded the contributions of the Dangote Refinery to Nigeria’s economy and its role in stimulating the private sector.
According to the OGUNCCIMA, the flagship industrial project has not only reshaped the country’s energy landscape but created opportunities for private enterprises and is driving sustainable economic growth.
The President of OGUNCCIMA, Lion Niyi Oshiyemi, on Tuesday, in Abeokuta, Ogun State, lauded the refinery’s achievements, pointing out its transformative impact on key economic sectors.
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In his words, “The Dangote Refinery is a game-changer for Nigeria’s economy. With a capacity to refine 650,000 barrels of crude oil daily, it has reduced Nigeria’s reliance on imported petroleum products, conserved foreign exchange, and fortified our energy security. This milestone reinforces the critical role the private sector plays in national development.”
He maintained that the impact of the Dangote Refinery on the private sector was profound.
“By creating thousands of direct and indirect jobs, the refinery has stimulated economic activities across multiple industries. From manufacturing to logistics, the project has provided businesses with opportunities to grow and innovate.
“The refinery’s operations have created employment for Nigerians at all levels while fostering technology transfer and skills acquisition. This has strengthened local businesses and equipped them with the tools to compete in domestic and global markets,” Oshiyemi noted.
The emphasis on local content has been a cornerstone of the Dangote Refinery’s strategy. By sourcing materials locally and partnering with indigenous companies, the refinery has supported the growth of Nigerian enterprises and encouraged investments in infrastructure, engineering, and technology.
He expressed the view that the ripple effects of the Dangote Refinery extend beyond the energy sector. Its presence has catalyzed industrialization by attracting investments in related sectors such as petrochemicals, manufacturing, and transportation. This multiplier effect has significantly expanded Nigeria’s industrial base and enhanced the nation’s economic competitiveness.
The OGUNCCIMA also highlighted the refinery’s contributions to addressing Nigeria’s balance of trade challenges. By producing refined petroleum products domestically, the refinery has reduced the need for costly imports while positioning Nigeria as a potential exporter of refined products within the African continent.
The impact of the Dangote Refinery goes beyond Nigeria’s borders, as it addresses Africa’s critical energy deficits and trade imbalances. By meeting the energy demands of neighboring countries and promoting intra-African trade, the refinery aligns with the objectives of the African Continental Free Trade Area (AfCFTA).
“This refinery is a shining example of what can be achieved through visionary leadership and investment in strategic sectors. It demonstrates Africa’s potential to compete globally and foster regional integration,” Oshiyemi remarked.
In addition to its economic contributions, the Dangote Refinery has maintained a strong commitment to corporate social responsibility. The Dangote Group’s investments in education, healthcare, and infrastructure have improved the quality of life for many Nigerians and strengthened community resilience.
“Dangote Refinery exemplifies the role of private sector enterprises in driving social progress alongside economic development. Its initiatives in healthcare and education are building a brighter future for Nigerians,” Oshiyemi added.
The OGUNCCIMA urged stakeholders across public and private sectors to emulate the Dangote Refinery’s innovative approach to development. By fostering partnerships and investing in transformative projects, Nigeria can achieve sustainable economic growth and reduce its reliance on external resources.
“This refinery stands as a model for what is possible when the private sector leads with vision and commitment. We call on all stakeholders to collaborate and replicate such success stories to build a resilient, self-reliant, and prosperous Nigeria,” Oshiyemi concluded.
Recall that the Dangote Refinery recently slashed the price of its petrol to N970 per litre to oil marketers, while assuring that further reduction was still possible in a foreseeable future.
The Nigerian stock market ended Wednesday on a bullish note, recording a significant gain of N364 billion for investors, despite concerns over corporate governance as 30 companies were axed from the Nigerian Exchange Limited (NGX).
The market’s positive performance was largely driven by the release of full-year 2024 financial results, boosting investor confidence.
The market capitalisation, which opened at N64.156 trillion, increased by 0.57% to close at N64.520 trillion.
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Similarly, the All-Share Index (ASI) rose by 591 points, or 0.57%, to settle at 104,549.74 from the previous 103,958.75. This pushed the Year-To-Date (YTD) return to 1.58%.
Despite the market’s overall bullish sentiment, market breadth remained negative, with 38 losers outweighing 27 gainers.
Among the top gainers, Aradel Holdings led the chart with a 10% increase to close at N594, followed by Chellarams Plc (9.98%), Stanbic IBTC (9.92%), UPL (9.64%), and Daar Communications (9.09%).
On the flip side, McNichols and Caverton led the losers’ chart, both dropping 10% to close at N1.44 and N2.07 per share, respectively.
Other notable decliners included Thomas Wyatt (-9.8%), Veritas Kapital (-9.79%), and Consolidated Hallmark Plc (-9%).
Market activity remained robust, with the total value of traded stocks rising by 9.99%. Investors exchanged 421.62 million shares worth N15 billion across 16,256 deals, compared to 542.23 million shares valued at N13.636 billion in the previous session.
Universal Insurance dominated the volume chart with 33.6 million shares, while Aradel Holdings led in transaction value, recording N6.3 billion in trades.
Amid the market rally, the NGX took a decisive step in enhancing corporate governance by delisting 30 companies over compliance failures.
The NGX Regulation Limited (NGX RegCo), the independent regulation subsidiary of Nigerian Exchange Group (NGX), and the Economic and Financial Crimes Commission (EFCC) have called for enhanced partnership to enhance market surveillance and combat financial crimes in Nigeria’s increasingly digitalized capital market.
This strategic initiative was discussed during a high-level meeting between NGX RegCo’s Chief Executive Officer, Olufemi Shobanjo, and EFCC’s Executive Chairman, Ola Olukoyede, at the Commission’s Abuja headquarters on Tuesday, January 28, 2025.
During the meeting, Shobanjo highlighted the critical need to adapt regulatory frameworks to address sophisticated digital financial crimes emerging in today’s evolving market landscape. “The digitalization of our markets has brought new challenges, necessitating a more robust collaborative approach,” he stated. “While our 2013 MoU established initial cooperation parameters, the substantial market growth in 2024 demands an enhanced partnership framework. As a frontline regulator, we recognize the EFCC’s crucial role in providing enforcement support and specialized expertise to combat market abuse and protect investor interests.”
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Shobanjo emphasized NGX RegCo’s dedication to maintaining market integrity and expressed confidence that reinforced collaboration with the EFCC would strengthen investor protection mechanisms.
Responding, Olukoyede commended the desire to strengthen the existing relationship between the two agencies and assured that the Commission was ready and willing to collaborate.
“I know you are also concerned with regulatory compliance because the issue of compliance is a key issue. It is part of our mandate to enforce compliance. Under my administration, we have strengthened our bond with different regulatory bodies. Let’s see how we can have a desk where we can work better and attend to you. I have a special interest in the capital market in respect of the abuse of assets and trades. We will try to review the MoU, make our observations in line with the relevant laws and regulations, and communicate our views to you. We pledge our commitment to this”, he said.
The strategic dialogue highlighted both organizations’ shared commitment to fostering a secure, transparent, and globally competitive Nigerian capital market that instils investor confidence and promotes sustainable economic growth.
In the bid to boost local refining of petroleum products, the Dangote Petroleum Refinery has placed orders for up to 12 million barrels of crude oil from the United States.
Biztellers gathered that the refinery resorted to crude importation because local supply challenges was threatening the new $20bn refinery’s push to reach full refining capacity.
Recall that the refinery plans to reach its 650,000 barrels per day capacity in June this year.
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Reliable sources at the Dangote Refinery maintained that low local crude supply from the Nigerian National Petroleum Company Limited (NNPC Ltd) had become a challenge to this plan to ramp up daily production.
The 12 million barrels of crude were already on the way from the United States and expected to land in Nigeria next month, according to the African Report.
“About 12 million barrels of crude have departed the US and should arrive in Nigeria by February,” an insider source told The Africa Report.
Dangote Petroleum Refinery is said to be importing more crude oil as supply from the NNPC becomes insufficient for fuel production at the $20bn Lekki-based facility.
Officials at the plant said the facility has ramped up production to about 500,000 barrels per day, with the target of hitting the 650,000bpd mark by June this year.
The NNPC Ltd is reportedly struggling to supply 350,000bpd to the Dangote refinery from the 450,000bpd crude meant for Nigeria’s local consumption.
With its current production capacity of 500,000bpd, officials said there is a need to look beyond the shores of Nigeria for the feedstock.
Recall that in July 2024, President Tinubu ordered the NNPC Ltd to sell crude oil to local refineries in naira.
According to the crude oil production forecast of producing oil companies and the refining requirement of functional refineries in Nigeria signed by the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, the Dangote refinery would require 550,000 barrels of a blend of Nigerian crude oil daily, 17.05 million barrels monthly, and 99.55 million barrels between January and June 2025.
The Dangote Refinery is already building eight more tanks to store imported crude. The facility is planning to stockpile imported crude oil because local supplies have become unreliable.
Officials of the refinery were quoted as saying that low crude supply from the NNPC Ltd “is driving import dependence.”
The building of eight additional tanks will see crude storage capacity at the refinery jump by 41.67 per cent to 3.4 billion litres.
“Importing crude from other countries instead of buying locally means that our crude stockpiles will have to be higher,” the Vice President in charge of the oil and gas business at Dangote Industries, Devakumar Edwin, said.
In May 2024, the refinery reportedly issued a term tender for the purchase of two million barrels of West Texas Intermediate Midland crude monthly for 12 months starting in July last year, amounting to 24 million barrels of crude in one year.
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