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Dangote refinery, solution to Nigeria’s forex crisis – global finance watchers

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International financial analytics corporation, S&P Global, has described the 650,000 barrels per day (bpd) Dangote Oil Refinery and Petrochemicals company as capable of resolving Nigeria’s foreign exchange (forex) issue and its huge pressure on the local Naira currency, while also catalysing the country’s economic development.

S&P Global, headquartered in Manhattan, New York City, disclosed this during an onsite visit to the Dangote Refinery at Ibeju-Lekki, Lagos as part of its sovereign credit ratings assessment of Nigeria. The team from the international rating agency were accompanied by officials from the Federal Ministry of Finance.

S&P noted that the largest single-train refinery complex in the world would bolster Nigeria’s oil sector and, more importantly, also have a positive impact on its growing economy.

Director and Lead Analyst, Sovereign and International Public Finance Ratings, S&P Global Ratings, Ravi Bhatia, who led the delegation to Lagos, said Dangote refinery would transform Nigeria into a net exporter of petroleum products. He added that this transformation is expected to boost revenue generation and alleviate the current pressure on the country’s foreign exchange reserves.

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“It is a very impressive facility, able to process 650,000 barrels a day, when in full capacity. It is the largest single-train refinery complex in the world. It came out quite quickly. Nigeria is a big exporter of crude but has issues with importing refined fuels. So, there is a gap in the market where crude can be refined in Nigeria, save money that way, and potentially save some foreign exchange. This will be positive for the economy in the medium term. It looks positive from our assessment,” Bhatia said after an over four-hour tour of the facility.

Also, in a chat with the media, Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, who led the team during the tour of the facility, reiterated that by harnessing Africa’s abundant crude oil resources to produce refined products locally, the company aims to catalyse a virtuous cycle of industrial development, job creation, and economic prosperity.  He also revealed that, as earlier promised, the company will start the production of premium motor spirit (PMS), this month (July).

Noting that products from the $20 billion facility are of high quality and meet international standards, Edwin said it can meet 100 per cent of Nigeria’s demand for petrol, diesel, kerosene, and aviation Jet, with surpluses available for export.

The S&P team commended the President of Dangote Industries Limited, Aliko Dangote, for integrating advanced technologies and quality control measures, including a state-of-the-art Central Control Unit ensuring smooth automation of operations.

Other members of the team of the international rating agency include the Associate Director, Sovereign Ratings, Maxmillian McGraw; Director, Corporate Ratings, Omegu Collocott; Senior Analyst, Bank Ratings, Charlotte Masvongo, and Director, Financial Services, Samira Mensah.

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Currently operating at 350,000 barrels per day capacity, Edwin said the refinery is slated to scale up to at least 500,000 barrels per day capacity by July/August, commencing the refining of petrol and ultra-low sulphur diesel.

He noted that the refinery, designed to process a wide range of crudes including various African and Middle Eastern crudes, as well as US Light Oil, conforms to Euro V specifications. In addition, it is designed to comply with US EPA, European Union (EU) emission norms, the Department of Petroleum Resources (DPR) emission/effluent norms, and the African Refiners and Distribution Association (ARDA) standards.

While noting that most refineries were built by foreign companies, he said it is a thing of pride that a Nigerian company designed and built the world’s largest single-train refinery complex while acting directly as its own Engineering, Procurement, and Construction (EPC) contractor. The refinery also incorporates a self-sufficient marine facility capable of handling the world’s largest vessels.

“The refinery can produce the best quality products in the world, Euro V grade. It is one of the energy-efficient refineries and it is highly environmentally friendly. It is sophisticated with a high level of automation. The largest single train refinery in the world is 100 per cent designed, engineered, and constructed by a Nigerian company as EPC contractor,” he said.

Nigeria, one of the world’s leading oil-producing countries, exports all its crude oil for refining and subsequently imports refined products due to a lack of operational refineries. It is estimated that Nigeria imports at least 50 million litres of petrol per day to meet domestic demand.

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According to data from the National Bureau of Statistics (NBS) in its Foreign Trade Statistics for the Fourth Quarter of 2023, Nigeria spent approximately N12 trillion on the importation of petroleum products in 2023, including premium motor spirit (PMS), commonly known as petrol. This figure marks an 18.68% increase compared to the N10 trillion spent on fuel imports in 2022.

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BREAKING: Death penalty for fake drugs! *NAFDAC to push new law at NASS

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Those peddling fake and substandard drugs in Nigeria should be ready for the hangman’s noose, if the thinking of the National Agency for Food and Drugs Administration and Control (NAFDAC), becomes the new law.

Mojisola Adeyeye, Director General of the body, who said on Friday that no other form of punishment is fitting enough, gave instances of where the application of such dangerous substances in form of health drugs, had led to fatalities.

Advocating that only stiff penalties would deter peddlers especially when deaths of children became involved, the NAFDAC boss, who appeared as a guest on The Morning Brief, a breakfast programme on Channels Television, said: “Somebody bought children’s medicine for N13,000 or something like that, another person was selling about N3,000 in the same mall. 

“That raised an alarm. Guess what? There was nothing inside that medicine when we tested it in our Kaduna lab. So, I want the death penalty. Because you don’t need to put a gun on the head of a child before you kill that child. Just give that child bad medicine.”

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Advocating that the National Assembly and the judiciary to make the proposal a reality, adding that the agency was open to partnering with lawmakers and other stakeholders on the matter, she added: “You cannot fight substandard, falsified medicine in isolation. The agency can do as much as it can but if there is no deterrent, there’s going to be a problem.

“Somebody brought in 225mg of Tramadol that can kill anybody, fry the brain and you give a judgment of five years in prison or N250,000. Who doesn’t know that that person will go to the ATM and get N250,000? That is part of our problem.

“There are no strict measures to deter [people] from repeating the same thing. We can do as much as we can but if our law is not strong enough, or the judiciary is not strong enough to stand up, we’re going to have a problem.

“So, our judiciary system must be strong enough. But we are working with the National Assembly to make our penalties very stiff.  But if you kill a child by bad medicine, you deserve to die. We have a lot on our plate in stemming drug peddling.

“Withe about 2,000 staff members nationwide and limited funding, NAFDAC is constrained in carrying out its activities. So, when it comes to staffing, you’re right on the point. We are short-staffed and I am hoping things will be better.”

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Give us electoral offences tribunal to take care of heist – INEC  

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Independent National Electoral Commission (INEC) on Friday, made a fresh push for the creation of an electoral offences tribunal, to curb the cases of attacks on the Nigerian democratic system.

Mahmood Yakubu, INEC Chairman, told reporters at the commission’s first regular quarterly consultative meeting with the media that the tribunal had become important owing to the backlog of electoral offence cases.

He said: “A major obstacle to the speedy dispensation of justice in this regard is that electoral offences are not time-bound as is the case with post-election offences through the tribunals. Furthermore, they are solely prosecuted by the Magistrate and State High Courts in the jurisdiction where the alleged offences are committed,” the INEC chief told the gathering.

“No priority attention is given to such cases as the courts deal with a variety of other cases. Consequently, electoral offences are carried over from one General Election to another which may sometimes affect the diligent prosecution of the cases. It is therefore imperative to renew our call for the creation of the Electoral Offences Tribunal that have a specific jurisdiction and limited timeframe for the speedy dispensation of cases.”

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Bemoaning the delay in the justice delivery system, citing the conviction of a returning officer in Akwa Ibom after six years in court, the INEC boss, said: “The recent successful prosecution of a Returning Officer in Akwa Ibom State is a case in point.

“The Commission has been diligently pursuing the case which arose from the 2019 General Election. In this particular case, it took nearly six years to achieve the successful prosecution at the trial court.

“Through our collaboration with the Nigerian Bar Association (NBA) cases involving 774 alleged offenders from the 2023 General Election are being prosecuted. So far, successful prosecutions have been recorded in Kebbi and Kogi States while our collaboration with the Economic and Financial Crimes Commission (EFCC) on vote-buying has yielded similar results in Lagos, Kwara, and Gombe States. Yet, many cases are still pending.”

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Again, terrorists attack Sokoto, kidnap 10 worshippers at a mosque

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A mosque in Bushe community, Sabon Birni Local Government Area of Sokoto State, fell into the hands of bandits on Friday, after which 10 worshippers including the Imam were spirited away, adding to growing cases of terrorist attacks.

Channels Television reports that the gunmen invaded the mosque on Thursday while worshippers were performing their early morning Subhi prayer, quoting residents as saying that the gunmen had been molesting the people of the community for some time now, even with the presence of security agents.

Ahmed Rufai, spokesman of the Sokoto State Police Command, who confirmed the attack on Friday, said the police authorities were working with other security agencies to rescue the abducted victims.

A member of the Sokoto State House of Assembly, representing the Sabon Birni B state Constituency who also confirmed the attack, commended the security agencies for their timely intervention.

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