Tag: Dangote

Dangote Refinery Secures $2.5 Billion Investment to Expand Africa’s Fuel Production

On By Dr. Y.In Great Moments, Great PeopleLeave a comment
Aliko Dangote (Source: Black Entrepreneur Profiles)

One of Africa’s richest man, Aliko Dangote, has just secured $2.5 billion investment from private investors to expand Africa’s fuel production. The investment is “believed to be the largest publicly disclosed private investment in Africa,” Dangote Petroleum Refinery and Petrochemicals said in a statement.

Recall that Aliko Dangote, Africa’s Richest Man Built One of the World’s Largest Oil Refineries in Nigeria, and is now supplying countries in the midst of the Iran war and blockade in the strait of Ormuz. This has been a major game changer for the country and for Africa as a whole. The company’s founder and Africa’s richest man, Aliko Dangote, said the new funds from the private placement will help raise “capital to complement … internal cash flows and external funding” as the company “advances its expansion agenda“. With the additional funds, Dangote said the company is aiming to reduce “Africa’s reliance on imported refined products” and strengthen the “continent’s energy security.”

Flag and map of Nigeria
Flag and map of Nigeria

With this fund, Dangote plans to further expand the Nigerian refinery site, which is already Africa’s largest refineries, and which will become one of the world’s largest refineries. A few months back, while in visit in Kenya, Dangote revealed his plans to open a refinery in Lamu, Kenya. This would be another first on the continent, but this time on the East coast of Africa. This also comes as The World Bank Wants Nigeria to ‘Open’ up its Oil Market. Industrialization in Africa : Ibrahim Traoré Tells it All. True sovereignty is impossible without industrialization.

Excerpts below are from the Daily Post. You can read further there on Financial Times, AfricaNews and the Dangote Petroleum Refinery.

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Dangote Refinery on Thursday announced that it has successfully raised $2.5 billion in new equity through a private placement.

Dangote Refinery (Source: Leadership.ng)

The refinery disclosed this in a statement on Thursday.

According to the firm, the $2.5 billion equity raise was 3.7 times oversubscribed relative to the initial offer size and resulted in the issuance of new equity.

“This transaction is believed to be Africa’s largest publicly disclosed primary equity private placement by value. As the Enterprise’s first equity capital raise involving external investors beyond its legacy shareholder base, the offering marks a significant milestone in advancing its long-term funding strategy and the continued development of African capital markets.

“Proceeds from the private placement will support DPRP’s ongoing expansion of the refinery and petrochemical complex, strengthen the Enterprise’s capital structure, and provide additional financial flexibility for future growth initiatives.

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The World Bank Wants Nigeria to ‘Open’ up its Oil Market

On By Dr. Y.In Great MomentsLeave a comment

Flag and map of Nigeria
Flag and map of Nigeria

Early this month, the World Bank made recommendations to the government of Nigeria, asking them to open the country’s borders to allow imports of premium motor spirit imports. This is seen as a way to edge Dangote refineries. On April 7, the World Bank, in its Nigeria Development Update, recommended that Africa’s most populous country prioritize imports, stating that imported fuel will be cheaper than domestically produced petrol. Days later, after the outcry of Nigerians, the World Bank deleted its NDU report and clarified that its recommendation is not a blanket stamp on fuel importation but a broader strategy linked to reforms and consumer protection in Nigeria. It later reversed its earlier stance on downstream oil sector liberalization, stating, “In the case of Nigeria, the focus should be to provide targeted support to the most vulnerable people through their well-functioning social safety net system, and the World Bank Group stands ready to step up its existing support.”

Dangote Refinery (Source: Leadership.ng)

Recall that Aliko Dangote, Africa’s Richest Man Built One of the World’s Largest Oil Refineries in Nigeria, and is now supplying countries in the midst of the Iran war and blockade in the strait of Ormuz. This has been a major game changer for the country and for Africa as a whole. Picture this, you are an oil producer, yet you export the crude oil to be refined elsewhere and later on import it at a higher price and very often low-grade quality (Swiss Firms poison Oil destined for Africa). Dangote has changed this, and at a time where the world is in turmoil because of the blockade in the strait of Ormuz which supplies over 20% of the world’s oil, his refinery has been able to meet demands. The West could not see this ‘independence’ too well, because their oil companies used to own the oil in Nigeria and refine it, and sell it back at premium prices.

Fuel

My question to the ‘caring’ (sarcasm) World Bank is this: where were you when your oil companies, Shell, BP, … were spilling oil in the Niger delta, thus creating major oil pollution? Justice at last from Shell … for Nigerians! Did you recommend that they clean up? Did you recommend that they compensate for all the environmental damages, the loss of livelihood, water contamination, health problems, forced migration, and loss of lives, caused while making humongous benefits? Did you stop Shell when it sold its subsidiary to absolve itself from paying for damages? Yet, your sister organizations at the UN and several human-rights organizations have said that the scale and duration of the oil pollution in the Niger Delta amounts to such a severe environmental injustice that some activists and scholars have described it as an “environmental genocide.” Now the World Bank wants us to believe that it cares so much for Nigerians that it wants them to save money at the pump by allowing foreign imports! REALLY???

After the World Bank redacted their statement, how can sane ‘experts’ make a recommendation to any country that imports is better for their livelihood? particularly to an oil producing country to import oil? They must think we are idiots.

Nigeria should not bow down to that institution which has never helped any country in the world except the imperialist ones that it serves. Nigeria and Africa should stick to working towards its independence (economic, political, cultural, etc) from these vipers!

To learn more, check out the articles at Guardian.Ng, The Africa Report, or the Daily Post Nigeria.

Africa’s Richest Man Builds One of the World’s Largest Oil Refineries

On By Dr. Y.In Great Moments, Great People1 Comment
Aliko Dangote (Source: Black Entrepreneur Profiles)

Aliko Dangote, Africa’s richest man, has built one of the world’s largest oil refineries in Nigeria, Africa. The refinery opened its doors last year, and last month shipped out its first boat of refined jet fuel to the Netherlands. It has not been easy with all the challenges and setbacks. This is a dream come true for Africa’s richest man, a dream which has taken several years to materialize. Now, why is this a first? and why are we applauding? 

Although Nigeria is one of Africa’s largest oil producers, the country does not have the capability to refine its own oil, meaning that the country imports fuel! This is the case for all African oil producers, except maybe Libya (if it was not destroyed by the NATO bombs) or Algeria. Picture this! Countries in the whole gulf of Guinea which are rich in oil, and exporting oil to other countries, are also importing oil from abroad… thus the constant oil penury in these countries or the high prices or in some cases the poor quality of gas sent back as in the case of the Swiss firms poisoning oil destined for Africa with levels of sulfur at least 200 times higher than in Europe. 

Dangote Refinery (Source: Leadership.ng)

The plant Dangote built spans nearly 4,000 football fields, is based in the Lekki Free Zone outside of Lagos, Nigeria, and will have the capability to produce 650,000 barrels per day once fully operational. It aims to process enough oil to not only make Nigeria self-sufficient but supply petrol, diesel, and jet fuel to other African countries and beyond. It needs to be said again, this refinery is a true game changer for Nigeria, and for Africa as a whole. In his remarks to the Cable, Dangote said, “The refinery will help boost Nigeria’s economic growth, with the creation of thousands of direct and indirect jobs. During the construction stage, it supported over 150,000 jobs, made up of mostly Nigerians,”… The capacity of the refinery is enough to satisfy domestic demands for refined products. The refinery will export about 50 percent of its production, thereby generating foreign exchange for the country.”

Below are excerpts from an interview Aliko Dangote gave to CNN. In his interview, Dangote mentioned some of the difficulties faced to get crude to refine, relations with other countries, trade policies on the contact, and the ever present visa restrictions for Africans that are still too strong in Africa. Enjoy… for the full interview, go to CNN.

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Dangote: “Nobody thought we were going to appear in this industry. So with that, we know there are challenges and that’s the truth, I have to be very open to you, but NNPC, [Nigerian National Petroleum Corporation], they’ve been very helpful. They do their own bit, but some of the IOCs [international oil companies] they’re struggling to give us crude because everybody’s used to exporting and nobody wants to stop exporting, which does not make sense.

CNN: What’s the timeline of Nigeria being completely self-sufficient producing oil, refining oil locally and exporting?

Dangote: Well, if the NNPC put all their refineries to work, Nigeria will be the largest petroleum products export country in the continent. Not only in the continent – it’ll be one of the biggest (worldwide), not as much as India but almost. So let me talk about Dangote Refinery: 40% of our refining products will go outside Nigeria. So that is after meeting the entire demand of Nigeria. We will meet the demand 100%. By June or so, we should be able to fully meet Nigeria’s demand and then because we’re ramping up already, we’re a little bit over 420,000 barrels per day already. So, as we go along, ramping up, I believe by July/August we should be at almost 550,000 barrels per day. Then maybe before end of the year we’ll be at about 650,000.

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I’m a big fan of industrialization and Africa can be industrialized, but we, Africans, are the only ones that can industrialize Africa. Nobody is going to come and do it for us. We have to have good policies and the policies have to be consistent, and then we have to make sure that the investment climate is good.