When 2019 comes, the stone that the leaders (builders) rejected shall be the pinnacle cornerstone.
When 2019 comes, the price of financial mistakes typically made out of sentiments and ignorance will stare many Nigerians in the face. Though sentiments also typically robbed individuals off the sense of quilt, many will remember how a lot the country bled during seasons of subsidising importation of petroleum merchandise to ensure stability and affordability, while the refineries remained epileptic.
In 2019, the Nigerian National Petroleum Company, at present bearing the burden of importing much of the petroleum merchandise, shall be relieved to concentrate on its core business.
Even in faraway United States, former presidential aspirant Hillary Clinton will nod over the briefing on Nigeria. As U.S. Secretary of State in 2009, she had stated that the continuous importation of refined petroleum products by Nigeria was an indication of dangerous management.
“Nigeria is the sixth largest producer of crude oil however the nation nonetheless imports fuel,Clinton said throughout a seven-nation tour of Africa.
When 2019 comes, the Minister of State for Petroleum Assets, Ibe Kachikwu, a powerful believer in the ability of the non-public sector for financial development and transformation, will heave a heavy sigh of relief over the removal of an ugly nationwide stigma, and rejoice over a promise delivered.
His repeated assurance of the cessation of petroleum products importation in 2019 is essentially based mostly on one key variable within the sprawling sands of the Ibeju-Lekki space of Lagos. “I have made very firm commitment to Nigerians that I have to stop the importation of petroleum merchandise by 2019 and I am going to keep it,he said during a go to to the positioning of the Dangote refinery not too long ago.
So, he instructed the President of the Dangote Group Aliko Dangote, “The challenge I gives you right this moment is that of time; I see your time for completion is December 2019, but I’m sure you’ll perceive my greed if I inform you that the refinery part ought to come earlier than the set date./p>
In the bigger picture, Kachikwu was not speaking out of personal greed. It doesn’t make any economic or even crude political sense for a major crude oil producer and exporter to import petroleum products with relish as was finished in recent times.
The year 2019 is subsequently an important date for Nigeria’s oil and gas sector! Solely 10 years in the past, in 2007, Dangote led a consortium of traders to pay $750 million for 2 of the nation’s 4 ailing refineries, which the federal authorities was finding it difficult to manage. However the Yar’Adua administration reversed the decision soon after it came in to score political factors.
“I went to him (Yar’Adua) and asked why he did that. However he stated it was because of strain,former President Olusegun Obasanjo, whose government offered the refineries, said recently.
These identical sentiments have pushed opposition in opposition to non-public-sector involvement in modernising the refineries despite copious evidence that the various turn-round maintenance efforts in the past did not add much value, even if there were assets to do one now.
In the present day, the same Aliko Dangote is the man on whose shoulders the expectations of 2019 rest. Nonetheless, he assured Mr. Kachikwu he has accepted the challenge and would do all doable to achieve the feat. He mentioned: “On the honourable minister’s problem, we are going to make it by the grace of God. I’m positive the minister will assist us to guantee that we meet his problem./p>
Mr. Dangote told Bloomberg later that though the mission just lately went “a little off trackbecause of the 70 million cubic meters of sand required, it is back on target. “I don’t have any worries about ending./p>
He added: “This is my lifetime mission. I should back it up with my very own life to ensure it is delivered./p>
Over the years, attempts have been made by government to encourage personal sector investment in refineries, however they have largely failed. Out of the 33 private refineries that had been given Licence to determine (LTE), solely the 1,000-barrels-per-day refinery operated by the Niger Delta Petroleum Resources in Ogbelle, Rivers State has come on stream to produce diesel.
Most of the opposite buyers have not even kicked off development work because of the funding issues.
The top OF THE CORNERSTONE
Driven by the commitment to the socio-economic development of the nation and a huge appetite for native direct investment, Mr. Dangote has lengthy put 2007 behind him.
“Nigeria’s refineries had been privatised in 2007. We purchased two, however after a few months we had a new government that determined to void the transaction, pondering we acquired an excellent deal. So, since 2007 we’ve been actually working on building our own refinery, but we didn’t finally start something until 2015./p>
It’s the world’s largest single line refinery, petrochemical complex, and the world’s second largest urea fertiliser plant. The refinery, in response to Mr. Dangote, could have the capability to refine 650,000 barrels of crude oil per day. The petrochemical plant will produce 780 KTPA Polypropylene, 500 KTPA of Polyethylene, whereas the fertiliser challenge will produce 3.0 million metric tons per annum (mmtpa) of urea.
“In addition, we’re additionally building the largest sub-sea pipeline infrastructure in any country on the earth, with a length of 1,a hundred km, to handle 3 billion SCF of gasoline per day. We also plan to assemble a 570 MW power plant on this advanced. As a matter of reality, gas from our gasoline pipeline will increase the pure domestic fuel provide and we estimate an extra 12,000MW of energy generation could be added to the grid with the additional fuel from our system./p>
In accordance with Mr. Dangote, “We can be adding worth to our financial system as all these tasks shall be creating about 4,000 direct and 145,000 indirect jobs. We can even save over $7.5 billion for Nigeria annually, by means of import substitution and generate an additional $5.5 billion per annum via exports of the refined petroleum products, fertilizer and petrochemicals.
“We envisage that these projects, which would cost over $18 billion, would be accomplished in 2019./p>
The petrochemical is thirteen times that of Eleme petrochemical. It’s 10 occasions that of NAFCON and subsequently, the biggest fertilizer plant in Africa, he added.
Expectant of the refinery, the federal government can also be counting the benefits. During a go to of Vice President Yemi Osinbajo and a few ministers to the positioning, he stated that when 2019 comes, the nation’s refining capability would be enough for the domestic market and export on the completion of the Dangote refinery undertaking.
He was optimistic that the mission would additionally increase gas supply to energy plants through the three billion standard cubic ft per day fuel pipeline, and that the power would buoy export earnings after meeting the nation’s current requirement of two billion scfpd.
The plant, in accordance with him, will generate over one hundred,000 employment alternatives.
Even labour unions that objected to the sale of the refineries in 2007 will be part of within the celebration when 2019 comes. Speaking on the venture, the final Secretary, Nationwide Union of Textile, Garment and Tailoring Employees of Nigeria (NUTGTWN), Issa Aremu, admitted that the bold initiative by the Dangote Group is a giant stride at re-industrialising Nigeria in particular and Africa on the whole. Fortunately for Labour, the refinery will make use of many people. It will also provide alternatives to local vendors.
During the week, the Nigerian Content material Development and Monitoring Board introduced that the administration of Dangote petroleum refinery has agreed to pick competent Nigerian vendors that can participate in the construction of the plant. The Chief Working Officer, Dangote Refinery Mission, Giuseppe Surace, said this at the technical meeting held between high officials of the company and NCDMB on the refinery challenge site in Lekki.
On the socio-financial scale, the refinery is sure to transform life in that part of Lagos right into a cosmopolitan, upscale space with jobs and improved living requirements. In anticipation of that, personal property traders have already shifted attention there.
Like every different business, the Dangote refinery challenge faces challenges, some due to its sheer dimension, but thus far, he has been able to take them on as they come. For instance, he defined that, “For the refinery, virtually every single merchandise was imported. One of many difficulties was that the majority of our ports usually are not designed to receive heavy equipment; 75 per cent of the cargo needed for the refinery cannot be offloaded in the port of Lagos. One piece of tools weighs 2,870 tons! So, we had to build our own jetty, about one kilometre in the ocean, which was a major undertaking.
“We couldn’t get local cranes to rent, both. We had to go and purchase 300 cranes. Then there’s manpower, which we additionally introduced from abroad—almost 30,000 individuals, because we didn’t have a educated workforce for these large initiatives./p>
On the initial allegations of battle with the host community, he said there are not any points as a result of the conflict was between two communities and the state authorities. He defined: “We didn’t purchase the land from communities, we purchased our land (swamp) at $100 million and the filling of the swamp to turn into stable land is costing us another $420 million.
There are funding points too: He mentioned the holding company, Dangote Industries Restricted, which is totally different from Dangote Refinery, took an initial loan for the venture that has accrued an interest of $173 million, stressing that, opposite to speculations, the company has not gotten substantial forex from the Central Financial institution of Nigeria. Fairly, he said “We lost virtually N50 billion to the brand new forex regime./p>
WHEN 2019 COMES
That is prone to be the state of affairs of nation’s refining capacity in 2019. The Dangote refinery, 650,000 barrels per day (bpd); federal government refineries, 445,000 bpd (and it is anticipated that they may operate at full capacity); Eko Petrochem and Refining Firm Limited, 20,000 bpd (all things being equal); modular refineries within the Niger Delta (if they will materialise by then).
The good news is that the Dangote refinery alone could also be in a position to provide ninety five per cent of native daily consumption. So, when 2019 comes, Nigeria is likely to be an exporter of petroleum merchandise.
Certainly, when 2019 comes, the thick cloud of national disgrace will likely be lifted. And economic reality will crush the previous Jericho partitions of politics and sentiments in the oil and gasoline business that perpetuate a circle of poverty! At the least, there shall be giant template to learn from and use.