The Largest Private Investment in Africa: The Dangote Refinery Story, by Arc Aliyu Tanimu

The attempt by a cabal spokesperson to scuttle the Dangote refinery has provoked the ire of Nigerians. Let me give you a brief insight into what the refinery looks like. The refinery is the biggest private investment in Africa, situated on a landmass of 2,635 hectares. The landmass is seven times the size of Victoria Island, where one of the world’s biggest dredging operations occurred, with 65 million cubic meters of sand dredged at a cost of approximately €300 million. Dangote Petroleum and Petrochemical Company developed a port and constructed two quays with a load-bearing capacity of 25 tonnes per square meter to bring over-dimensional cargoes close to the site directly. The construction commenced in 2017, with over 2,570 pieces of various equipment brought in to enhance local capacity for the work, including 340 cranes to support the project. The refinery complex is a mammoth project with the largest single order of 5 SPMS (Single Point Mooring Systems) anywhere in the world. The refinery has a self-sufficient marine facility with the ability for freight optimization. The operation of the refinery starts with the SPM (Single Point Mooring). The storage tank is equal in height to 40 storage buildings and weighs as much as 320 adult elephants. Installing this mammoth equipment was not a mere feat but a synergy between man and machine, science and human will. The refinery complex generates its own power; this 435-megawatt power plant in the refinery will be able to meet the total power requirements for Ibadan Disco and output covering the five states of Oyo, Kwara, Ekiti, Ogun, and Osun. Nigeria, Africa’s behemoth, is importing petroleum to meet its needs because evil forces have prevented the state refineries from working. The federal government issued licenses to 21 companies to construct refineries, but only Dangote was daring enough to invest such a humongous amount into a single project. Nigeria must wake up and say enough is enough; it cannot be business as usual.

According to Dangote, ‘it is easier to build a refinery in Asia or the Middle East than in Nigeria because Nigeria and Africa lack infrastructure. When we needed cranes, we couldn’t find any to hire. When we required rigs for piling, we had to choose between stone columns and piling that goes up to about 35 meters. We are talking about a quarter of a million piles and stone columns.’ The concrete required for this project could pave the entire 720 kilometers of federal roads in Lagos. Notably, Dangote Petroleum Refinery has employed over 30,000 Nigerian personnel onsite, with a current ratio of 93% Nigerians to 7% expatriates. Over 6 million man-hours have been spent on direct labor. At the project’s peak, from engineering to procurement to construction, over 150,000 people across diverse nationalities and continents were employed at various stages. A total of 900 Nigerian engineers are being trained in engineering, design, and refinery operations outside the country. The refinery will create over 100,000 direct and indirect jobs and provide constant training for all its engineers. The Dangote Refinery is a legacy project that will generate $21 billion per annum for Nigeria.

During a press briefing on the sidelines of the House of Representatives fact-finding mission, Dangote stated: ‘There is also a question of NNPC’s shareholding. NNPC paid $1 billion, equivalent to 7.2 percent, as a deposit, and we agreed to give them an additional year, which expires on June 30. NNPC wants to remain at 7.2 percent but cannot pay, and we haven’t received anything in writing.’ He also alleged that NNPC imports adulterated fuel.

Despite large deposits of untapped mineral resources, oil remains our mainstay. Saudi Arabia, with a population of 38.7 million, produces 11.6 million barrels daily, while Nigeria, Africa’s largest country, produces a grossly inadequate 1.6 million barrels daily.

I strongly disagree with those who criticize the Dangote refinery and other local refineries, claiming their products are inferior to imported refined products. Such statements are unpatriotic and deserve condemnation, as they do not reflect well on the administration of President Bola Ahmed Tinubu. The allegation that Dangote refinery wants to monopolize the market is baseless. The way to prevent monopoly is to fix our moribund refineries, ensuring competition. This criticism reveals that Engr. Faruk Ahmad is a pawn of the cabal, insulting our collective intelligence. They continue to hold the country hostage through perpetual importation of refined products. Common sense dictates that producing and refining locally will reduce spending and preserve our foreign exchange. We cannot continue to sink billions of naira into turnaround maintenance. Over 20 companies were issued licenses, but none have come on stream except Dangote. We cannot continue like this; an import-dependent country. We prefer to export and import finished products instead of adding value. It’s shameful. Our employee, President Bola Ahmed Tinubu, must demonstrate political will and step in to put a stop to the mind-boggling theft. We, the people of  Nigeria, employed him to serve us, he must protect the interest of  Nigeria before his personal or elite interests. We are facing one of the worst economic hardships and must do everything possible to remedy the situation we find ourselves in. If we refine petroleum locally and add value, we would shore up our beleaguered currency, which is in freefall.

Arc Aliyu Tanimu

+2347033399363

Kaduna, Nigeria.

Freelance architect with many years experience, skilled writer, columnist with passion for designing and communicating innovative and functional spaces.