Nigeria - Powerbroker Aliko Dangote Nigerian Oil Mogul

[White_snow]

DANGOTE FIGHTS FOR CONTROL OF PETROL MARKET

THE BONE OF CONTENTION
Aliko Dangote, a prominent Nigerian business mogul, has filed a lawsuit against other petroleum marketers in a bid to gain control over the petrol market. This legal move has led to a court summons for these marketers, drawing attention to a potentially significant dispute within the industry.

Those involved in this lawsuit are the top 3 oil marketers in the nation, who are:
● AYM Shafa Limited
● A.A. Rano Limited
● Matrix Petroleum Services

They also fought back by appealing to the Federal High Court in Abuja to dismiss the suit filed by Dangote Petroleum Refinery and Petrochemicals. In a joint counter dated November 5, 2024, they argued that monopolizing the oil sector would be a huge disaster to the country's economy.

THE LAWSUIT
Earlier this year, on September 6, 2024, Dangote Refinery had drawn the battle line by suing the following bodies:
● Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)
● Nigeria National Petroleum Corporation (NNPC)
● A.A. Rano Limited
● T.Time Petroleum Limited
● 2015 Petroleum Limited
● Matrix Petroleum Services Limited
● AYM Shafa Limited

On suing, Dangote Refinery became the Plaintiff, with 7 defendants. The Plaintiff accused NMDPRA of the following:
● Violating the law by issuing licenses for the importation of petroleum products as opposed to issuance when there is a shortfall of petroleum products.
● Violating its responsibility of encouraging local refineries like Dangote Refinery.

THE FIGHT AGAINST MONOPOLY
In a counter response, other oil marketers:
● A.A. Rano Limited, AYM Shafa Limited, and Matrix Petroleum Services Limited accused Dangote Refinery of not producing adequate petroleum products for the daily consumption of Nigeria claiming Dangote had no evidence to refute the allegation.

Other arguments they held on to are:
● They are qualified for the import license issued by NMDPRA since they met all legal requirements for the issuance of the license even before it was issued.
● Their license was backed up by the provisions of the Petroleum Industry Act, 2021, and the Federal Competition and Consumer Protection Act, 2018 amidst other relevant laws.
● The issued license had no effect on the operations of Dangote’s refinery or other businesses he owned.

Kicking against monopoly in Nigeria’s Petroleum Industry which can be achieved by making the Dangote’s Refinery solely responsible for crude oil and petroleum products, they explained this will:
● Affect the economy critically
● Subject the citizens to hardship especially in the face of breakdown or obstruction in the refinery's production, leading to energy crises.

To support this claim of breakdown or obstruction in operations, the defendants had purported that the refinery has no reserve adequate to last it for 30 days. Hence, the need to resort to importation in order to complement local production with a plea to the court that granting the Plaintiff's request will be a drive to economic hardship, mass oppression and the country being at the mercy of Dangote’s refinery.

However, the case had been adjourned by the presiding judge, Justice Inyang Ekwo who fixed January 20, 2025 for a report of settlement or service.

YOUR VIEW
What do you think?
● Is the idea of monopoly an imminent danger to the Nigerian economy?
● Will importation really affect Dangote’s refinery?

Reference link:

Marketers, Dangote fight in court over control of petrol market - Businessday NG

...oil marketers, AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited, are fighting Dangote Refinery...

businessday.ng

 

[Crimson Fucker]

Monopolies are never good.

 

[kiwifails]

Monopolies are never good.

We're having that problem currently in America especially with healthcare agencies

 

[White_snow]

Dangote Refinery: Africa’s Largest Oil Refinery Seeks Billions for Crude Supply

Aliko Dangote, Africa’s richest man and founder of the Dangote Group, is intensifying efforts to secure billions of dollars in funding to support crude oil supplies for his $20 billion refinery in Lagos. According to a report, Dangote is in discussions with commercial lenders, development banks, and oil traders to ensure a steady supply of crude, which will be processed into refined petroleum products.

Fundraising Efforts in Progress
The Africa Finance Corporation (AFC), a Nigerian pan-African development lender and investor in the refinery project, is actively involved in the fundraising talks. The AFC spearheaded a financing round in December 2023 to help kick-start the refinery’s
commercial operations.

High Operational Costs
The Dangote refinery requires approximately $2 billion every 90 days to secure the minimum crude supply of 300,000 barrels per day, according to insiders quoted by FT. Despite the project’s ambition, financial backers have expressed concerns which are:
● Supply Challenges: Dangote has struggled to secure a stable crude supply.
● Currency Risks: Nigeria’s naira has sharply depreciated following two devaluations within a year, raising concerns over revenue stability.

A banker involved in the negotiations warned, “The refinery may never make a profit in real terms. It was built over budget, and the naira’s devaluation poses significant risks.”

Scaling Refinery Capacity
Dangote aims to reach the refinery's full capacity of 650,000 barrels per day by Q2 2025. Currently, the refinery is producing 420,000 barrels per day, according to the billionaire. Describing the project as a "game changer" for Nigeria, Dangote is determined to resolve what he termed an "absurd" reliance on imported refined petroleum despite the nation being Africa’s largest oil producer.

Crude Supply Strategies
Efforts are underway to diversify crude sources:
● The refinery has already purchased crude from the United States and Brazil.
● Discussions are ongoing with African suppliers, including Libya and Angola.

Devakumar Edwin, a senior executive at Dangote Group, confirmed these developments to Financial Times.

THE JOURNEY SO FAR
● Milestones:
Diesel and Aviation Fuel: Production commenced earlier in 2024.
Petrol: The refinery officially began producing petrol on September 5, raising hopes for reduced
dependence on imported fuel.

● Challenges:
In October, crude supply issues led to an emergency meeting between Dangote, President Bola
Tinubu, and NNPC Group CEO Mele Kyari. Discussions centered around supplying 365,000
barrels per day of crude, paid for in naira.

NNPC’s Reduced Stake:
The Nigerian National Petroleum Company (NNPC) initially held a 20% stake in the refinery. However, due to unmet financial commitments, this has been reduced to 7.2%. The NNPC paid $1 billion upfront in 2021 but did not complete the $2.7 billion deal, opting instead to invest in
compressed natural gas (CNG)

Pricing Controversies:
The Independent Petroleum Marketers Association of Nigeria (IPMAN) previously raised concerns about the high cost of petrol from the Dangote refinery. Following negotiations, the refinery agreed to sell petrol at:
₦940 per liter (via ships).
₦990 per liter (via trucks).

Conclusion: A Game-Changing Yet Challenging Project
The Dangote refinery stands as Africa’s largest infrastructure project in decades and a bold step toward addressing Nigeria’s refining challenges. However, its success hinges on overcoming significant hurdles, including crude supply logistics, currency devaluation, and operational costs. With hopes pinned on achieving full capacity by 2025, Dangote remains committed to transforming Nigeria’s oil sector and reducing the nation’s dependence on imported petroleum products.

THOUGHTS
Will Dangote succumb to pressure? Or will he go ahead with his project?


Reference link:

Report: Dangote seeks billions of dollars to boost crude oil supply to refinery

Aliko Dangote is seeking to raise billions of dollars to step up crude oil supplies for his $20 billion oil refinery in Lagos.

www.thecable.ng

 

[kiwifails]

You know once the Chinese get done colonizing Africa it might be a hospitable place to live. But then it'll be full of Chinese people so maybe not.

 

[White_snow]

You know once the Chinese get done colonizing Africa it might be a hospitable place to live. But then it'll be full of Chinese people so maybe not.

Can chinese ever colonize Africa!!!!

 

[kiwifails]

Can chinese ever colonize Africa!!!!

 

[Crimson Fucker]

You know once the Chinese get done colonizing Africa it might be a hospitable place to live. But then it'll be full of Chinese people so maybe not.

The Chinese will eat all the indigenous African wildlife to extinction and sell ground up African mummies as snake oil erectile dysfunction medicine lmao

 

[kiwifails]

The Chinese will eat all the indigenous African wildlife to extinction and sell ground up African mummies as snake oil erectile dysfunction medicine lmao

Of course, after they strip-mine the entire continent as they did with their own lands, and then pollute it so heavily that it is not habitable for generations.

Not to mention the genocide of anyone who is not 99% mainland Chinese.

 

[Catministrator]

It was not that long ago when we had trusts or monopolies

 

[kiwifails]

It was not that long ago when we had trusts or monopolies

View attachment 77111

Robber barons they where

 

[Crimson Fucker]

It was not that long ago when we had trusts or monopolies

View attachment 77111

The penguin's family line goes way farther back than I realized.

 

[kiwifails]

The penguin's family line goes way farther back than I realized.View attachment 77116

Zorro

 

[White_snow]

Dangote Refinery Restarts US Crude Oil Import

After 3 months of relying on the Nation's crude supply, Dangote Refinery resorts back to crude import. This development was in a bid to meet the growing domestic and regional demands for petrol. On Wednesday, November 20, 2024, it was disclosed that a cargo carrying 2 million barrels of WTI Midland from Chevron Corporation will be delivered to the 650,000 barrels per day refinery located in Lagos by December.

NIGERIA’S CRUDE SUPPLY
Earlier in its operations, the Dangote Refinery had always relied on crude sources from Nigeria and the US by regularly importing one or two shipments of US crude each month in addition to using domestic supplies. However, these imports were reduced around August following an agreement with the federal government that the Nigerian National Petroleum Corporation (NNPC) Limited would supply crude oil to the refinery in naira rather than dollars. The deal is that Dangote will receive up to 400,000 barrels of local oil daily, paid for in Nigerian currency.

BACK STORY
The cause of the recommencement of imports is not known yet.
● However, a report from Sparta Commodities suggests the import is due to lower shipping costs may have made US oil more affordable in Europe.
● An earlier report had indicated that the refinery was seeking to raise billions of dollars to import crude oil and increase production and that the Chairman of Dangote Group, Aliko Dangote, was in concrete talks with commercial lenders, development banks, oil traders, and other industry participants to raise funds for crude supplies to turn into refined products.
● According to a report, the refinery would need a minimum supply of 300,000 barrels per day to secure more crude to reach its capacity and this could imply that the refinery could no longer rely on domestic supply or the supply had been stalled.

On Tuesday, it was reported that the plant began refined petroleum product shipping to West African countries, a sign to traders that the mega-refinery operations could soon potentially shake up regional fuel markets.

READERS’ VIEW
● Will importation cushion or aggravate the exorbitant price of petrol on the Nigerian masses?
● Is it a wise decision?

Reference link:

https://21stcenturychronicle.com/dangote-resumes-crude-oil-purchase-from-us/

 

[Catministrator]

Dangote Refinery Restarts US Crude Oil Import

After 3 months of relying on the Nation's crude supply, Dangote Refinery resorts back to crude import. This development was in a bid to meet the growing domestic and regional demands for petrol. On Wednesday, November 20, 2024, it was disclosed that a cargo carrying 2 million barrels of WTI Midland from Chevron Corporation will be delivered to the 650,000 barrels per day refinery located in Lagos by December.

NIGERIA’S CRUDE SUPPLY
Earlier in its operations, the Dangote Refinery had always relied on crude sources from Nigeria and the US by regularly importing one or two shipments of US crude each month in addition to using domestic supplies. However, these imports were reduced around August following an agreement with the federal government that the Nigerian National Petroleum Corporation (NNPC) Limited would supply crude oil to the refinery in naira rather than dollars. The deal is that Dangote will receive up to 400,000 barrels of local oil daily, paid for in Nigerian currency.

BACK STORY
The cause of the recommencement of imports is not known yet.
● However, a report from Sparta Commodities suggests the import is due to lower shipping costs may have made US oil more affordable in Europe.
● An earlier report had indicated that the refinery was seeking to raise billions of dollars to import crude oil and increase production and that the Chairman of Dangote Group, Aliko Dangote, was in concrete talks with commercial lenders, development banks, oil traders, and other industry participants to raise funds for crude supplies to turn into refined products.
● According to a report, the refinery would need a minimum supply of 300,000 barrels per day to secure more crude to reach its capacity and this could imply that the refinery could no longer rely on domestic supply or the supply had been stalled.

On Tuesday, it was reported that the plant began refined petroleum product shipping to West African countries, a sign to traders that the mega-refinery operations could soon potentially shake up regional fuel markets.

READERS’ VIEW
● Will importation cushion or aggravate the exorbitant price of petrol on the Nigerian masses?
● Is it a wise decision?

Reference link:

https://21stcenturychronicle.com/dangote-resumes-crude-oil-purchase-from-us/

What about Cameroon? Does he plan to import from right across the bordrr?

 

[White_snow]

DANGOTE LEADS NIGERIA’S MALARIA FIGHT

The World Health Organisation (WHO) recently released the World Malaria Report 2024, which showcased tremendous global progress towards eradicating malaria while highlighting the ongoing challenges in malaria control.

In the recent program hosted by the Nigeria End Malaria Council (NEMC), Dangote commended the World Health Organization and urged citizens and stakeholders to intensify efforts to eradicate malaria in Nigeria.

THE NIGERIA END MALARIA COUNCIL
In August 2022, the Former President of Nigeria, His Excellency Muhammadu Buhari, inaugurated the National End Malaria Council chaired by Nigerian billionaire, Aliko Dangote.

The council also includes senior government representatives, religious leaders, and other industry titans.

During his speech on Friday, the Chairperson – Aliko Dangote – expressed his optimism about eradicating the deadly disease (malaria) in Nigeria. He noted that there has been a 1% reduction in Nigeria’s malaria burden, dropping from 27% to 26% within the council’s first year of operation.

He thereafter envisioned a malaria-free Nigeria by 2030.

DANGOTE’S SPEECH

Dangote emphasized the need for a joint commitment from Nigerians to create a safe environment and to strengthen healthcare systems and policies. He commended the reduction in malaria mortality rates, describing it as a significant step toward achieving the 2030 goal of a malaria-free Nigeria.

Urging stakeholders and healthcare providers not to relent, he called for continued implementation of the preventive measures that have proven effective in reducing malaria, such as:
The use of insecticide-treated nets
● Improved testing and diagnosis
● Spreading awareness
● Seeking prompt medical care

Dangote described the WHO report as comprehensive, noting that it serves as a vital tool in the fight against malaria and highlights the progress made so far.

In conclusion, he acknowledged the severity and challenges posed by malaria but stressed the need for unity, determination, and joint efforts. He reiterated that eliminating malaria by 2030 remains a shared goal and vision that everyone must work tirelessly to achieve.

YOUR VIEW
● Is the “end-malaria” campaign achievable?
● Is there a need for novel preventive measures for the effective eradication of malaria?

REFERENCE LINK:

Dangote calls for renewed action against malaria - The Nation Newspaper

The Nation Newspaper Dangote calls for renewed action against malaria

thenationonlineng.net

Dangote calls for renewed action against malaria - The Nation Newspaper

The Nation Newspaper Dangote calls for renewed action against malaria

thenationonlineng.net