Dangote Refinery: Pride to the Nation and beacon of hope, by Prof M.K. Othman
Deep Thought with Othman
A business mogul the size of Aliko Dangote is assumed to say less outside his business engagements. Yet, as a guest speaker at the 38th ABU convocation lecture on Friday, January 29, 2016, he held an unusual audience: the elites, industrialists, technocrats, academia, and teeming youths, spellbound to breath-taking silence, listening to his soft-spoken golden voice deliver his lecture. Perhaps the silence was not unconnected to the audience’s desire to learn how Aliko Dangote built his empire from the horse’s mouth, hoping to replicate the “how” for other Dangotes. The lecture titled “The Role Entrepreneurship in National Development: The Story of Dangote Group.” The message was educative, thought-provoking, inspiring, and a beacon of hope for the teeming unemployed youth, instilling a sense of optimism and encouragement. It was a fleeting moment with a profound sense of pride and fulfillment to host that giant entrepreneur and accomplished financial guru. Dangote could ostensibly be a distinguished professor of applied business advice and management interested in human and financial resources, including capital formation, savings, and investment. The event was my motivational propeller of nominating Dangote for the conferment of an Honorary Doctorate Degree on the floor of ABU Zaria senate, which was unanimously accepted and done at the 36th Convocation in 2018.
The name “Dangote” resonates in virtually every household in Nigeria and millions of other households in the rest of Africa. In Nigeria, no household can escape the daily use of a series of household essential commodities from the Dangote group: salt, sugar, rice, fruit drinks, vegetable oil, seasoning pasta, and other products such as cement, flour, etc, among others. This widespread influence of the Dangote Group creates a sense of connection and community among the audience, as they realize that Dangote touches the lives of several million people in Africa and beyond through direct employment, job and wealth creation, businesses, and philanthropic activities. The Dangote group is visibly present in about twenty other African countries besides Nigeria.
READ ALSO: Dangote Refinery: For love of country, beyond profit and passion, by Zainab Suleiman Okino
Although Dangote’s business grew exponentially, patriotism and entrepreneurial acumen made Dangote realize that importation stimulates economic growth in exporting countries while transferring inflation and job losses to importing countries. This realization and Dangote’s trip to Brazil in 1997 marked a turning point for the Dangote group. Dangote said, “I was shocked when I visited Brazil in 1997 and discovered that another third-world country similar to Nigeria had huge manufacturing complexes that provided jobs for its citizens and developed its economy. If they could do it in Brazil, I realized we could replicate it in Nigeria.” Apparently, this patriotic zeal was the sole motivation to address Nigeria’s seemingly unending energy crisis – the importation of petroleum products into the country despite being Africa’s highest crude oil producer.
The petroleum crisis is a multifaceted, hydra-grave problem that has killed the Nigerian refineries and drained Nigerian foreign exchange through massive fraudulent importation of refined petroleum products. The refineries have been gulping enormous financial resources in the last three decades without refining a single drop of crude oil. The government has been paying vast amounts of unaccountable money to subsidize the import of petrol into the country without respite. It is like pouring water into a bottomless bucket with no apparent solution from the legislative and executive arms of government. When the current government withdrew the unsustainable subsidy without comprehending the issue, the cost of transportation tripled, overshooting hyperinflation with consequent hardship. Yet, the refineries are still dysfunctional. With this scenario, Nigerians eagerly waited and prayed for the completion of the 20 billion USD Dangote refinery to take the country out of the woods. With its potential to end decades of Nigeria’s energy crisis, the Dangote Refinery is a beacon of hope and optimism for the future despite the dark forces working against it.
First, the NNPCL, the supposed 20% shareholder of the Dangote Refinery, refused to sell crude oil to the refinery, claiming that Nigerian crude oil was sold in advance and that Dangote should wait for years before the supply started. However, Dangote overcame the problem by purchasing crude oil from as far as America and Brazil.
Next, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), a subsidiary of NNPCL, condemned the Dangote Refinery. NMDPRA accused the refinery of being a monopoly selling inferior-quality diesel while it was yet to be licensed to commence operations.
The sabotage against the Dangote Refinery has only reinforced Aliko Dangote’s resilience. He refuted the poor-quality claim before the joined House of Representatives committee and accused the NNPCL officials of importing petroleum products from their refineries abroad. He said, “Some Nigerian National Petroleum Company (NNPC) Limited officials and oil traders have blending plants in Malta, an island country in Southern Europe, from where they import substandard products. We all know these areas. We know what they are doing”. Dangote associated vehicle problems in Nigeria with substandard imported fuel, noting that diesel produced locally is better quality than imported fuel.
He appealed to the House of Representatives leadership to establish an independent committee to verify the quality of petrol available in Nigeria, particularly those sold at filling stations. “I want you to set up a committee that will bring every representative headed by your chosen honorable member to take samples from filling stations. I must tell you today that all the test certificates that people are busy floating around—where are the labs? Even if they have the labs, I can tell you they are fake certificates.” Despite the challenges, Dangote remains steadfast in supporting the refinery, a testament to his unwavering commitment to national development. His resilience in the face of adversity is inspiring and instills hope for a brighter future.
The internal sabotage attracted unprecedented support for the Dangote refinery from well-meaning Nigerians while condemning the attitude of NNPCL for the apparent lack of support for the refinery. Some of the prominent Nigerians who demonstrated their support were Dr. Akinwunmi Adesina, the President of AfDB; his Royal Highness Sanusi Lamido Sanusi, the Emir of Kano; a multibillionaire businessman; Mr. Femi Otedola, Labour Party presidential candidate, Dr. Peter Obi, the former Bauchi State Commissioner of Education; and Ace Columnist, Dr. Aliyu Tilde, among others.
The officials of the NNPC should have been ashamed of themselves for failing the nation and draining billions of hard-earned USD in the name of refinery maintenance and huge salaries without refining a single drop of crude oil. Instead of supporting the Dangote refinery acquired easy sailing to see the limelight but NNPCL created huddles and sabotage distracting the refinery for smooth take up. Earlier Nigerians were made to believe NNPCL has 20% shares in Dangote refinery but the recent revelation indicate the actual shares NNPC to be less than 10%. How can someone cripple the business he has shares in?
By its unpleasant behavior towards Dangote’s refinery, NNPCL has dug its grave; the National Assembly must unearth the activities of NNPCL and find reasons why Nigerian refineries have failed to deliver over the years? Why the habitual turnaround maintenance yielded no result? Who benefits from oil subsidies, and oil imports? Who owns the Malta blending plants? etc. The issues raised by Senator Adams Oshiomhole on the floor of the Senate must be addressed; otherwise, Nigeria will remain economically captive by the unpatriotic people within and without.
The Dangote Refinery, one of the largest in the world, is a source of great pride for Nigeria and, indeed, all of Africa. It marks the end of Nigeria’s petroleum imports and the start of a new economic era that will usher in a prosperous nation with a bright future for our grandchildren. May it happen sooner than later. Amen, and welcome aboard our journey of hope.
Professor Othman is the Executive Director of National Agricultural Extension and Research Liaison Services (NAERLS), ABU Zaria.
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