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By Abiodun Alade
Nations are forged by patriots – individuals who rise to the occasion during pivotal moments in their country’s history. Throughout history, patriots have played crucial roles in shaping nations, advocating for citizens’ rights, crafting new laws, and driving progress. Patriotism is not just a virtue; it is vital for a nation’s survival and prosperity. A truly developed country is built on the foundation of genuine patriotism. In essence, patriotism involves prioritising the nation’s interests above personal gains, ensuring that the collective good is at the heart of one’s actions and contributions.
Nigeria, the giant of Africa, stands at the crossroads, and it is imperative for all patriots to rise to the occasion. Recent developments have underscored the urgent need to revitalise the economy and improve the well-being of the nation’s large population. Failure to act decisively could leave us precariously close to a crisis with potentially explosive consequences.
Despite being Africa’s largest oil producer, Nigeria has for long struggled with inadequate refining capacity. Historically, the country has depended on imports to satisfy domestic fuel demands, resulting in frequent shortages, long queues at filling stations, arbitrary price hikes, and substantial foreign exchange drain. However, this narrative is set to change due to a patriotic act of renowned Nigerian businessman Aliko Dangote – a creator of wealth and human resources for the good of humanity, with the establishment of Africa’s largest private-sector project – the Dangote Petroleum Refinery and Petrochemicals Limited.
The refinery is more than a testament to Aliko Dangote’s business acumen; it is a critical juncture and nexus for Nigeria’s economic future. The refinery represents a transformative shift towards self-reliance, aiming to reduce the nation’s dependency on imported refined products and enhance energy security. With its massive scale and ability to process 650,000 barrels of crude oil daily, the refinery is poised to reshape the landscape of the Nigerian energy sector.
Dangote’s patriotic commitment to Nigeria inspired the mobilisation of a $20 billion investment in establishing the refinery, addressing the national shame of spending nearly two-thirds of our gross foreign exchange reserves on imported refined petroleum products. According to the National Bureau of Statistics (NBS), Nigeria spent a whopping N12 trillion on fuel imports in 2023, representing an 18.68% increase from the N10trn spent in 2022.
“In a finely balanced oil market, Nigeria has suddenly reemerged as a key player,” as Bloomberg aptly noted. A nation that has relied on imported fuel for over four decades is now being described as an ‘oil market juggernaut’ and a potential disruptor for Europe, thanks to the singular patriotic act of one man.
The Organisation of Petroleum Exporting Countries (OPEC), in its monthly Oil Market Report for June 2024, listed Dangote Refinery among the top diesel and jet fuel suppliers poised to disrupt Europe’s oil and gas industry. Experts predict that this development will have a positive impact on the Nigerian economy. OPEC noted that supplies from the world’s largest single-train refinery will pressure the performance of Europe’s oil industry, particularly in Northwest Europe (NWE) gasoil.
Aliko Dangote has consistently framed the Ibeju-Lekki refinery project as a patriotic endeavour. His vision extends beyond personal or corporate gain; he aims to address Nigeria’s long-standing challenge of refining capacity and dependency on imported fuels. By establishing the world’s largest single-train refinery, Dangote seeks to alleviate Nigeria’s fuel shortages, reduce the burden on foreign exchange reserves, and enhance national energy security.
However, the success of the refinery hinges on more than just its operational capabilities; it requires a collective commitment to patriotism from all stakeholders, including the government, regulators, and Nigerians among others.
The government, through appropriate agencies, must ensure the successful operation of the refinery by establishing a regulatory framework that is diligently implemented, and fostering a conducive environment for growth. It is illogical that Nigeria, a major crude oil producer, continues to rely on imported refined products. This dependence depletes our valuable reserves and incurs significant costs in foreign currency.
“The Dangote fuel refinery is potentially transformational for Nigeria, which has always been an oil exporter and fuel importer. This fact is often regarded as a failure and an embarrassment by politicians, businesses and the media alike, but the new refinery has the ability to change this,” noted the reputable Economist Intelligence Unit (EIU) in a recent report, which warned that further delays in crude oil feedstock to the refinery could jeopardise Nigeria’s economic recovery and put additional pressure on the Naira.
Subsidies and logistical shortfalls or under-recovery are unsustainable for the economy. Instead, the focus must shift to ensuring that the refinery has a steady supply of crude oil. It would be counterproductive for the Dangote Refinery as well as modular refineries, built on a dream of Nigeria consuming its own processed crude, to keep importing crude from developed countries like the United States. The government needs to eliminate obstacles to crude oil availability, including addressing oil theft, vandalism, and enhancing crude oil production capacity.
The government, particularly through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), must enforce strict adherence to the domestic crude oil supply obligations imposed on oil producers. It is well-known that some of Europe’s largest refineries, now facing potential disruption from the Dangote Oil Refinery, are owned by these same International Oil Companies (IOCs). Despite operating in Nigeria since the discovery of crude oil, many of these IOCs have chosen to build their refineries in Europe while exploiting our resources.
It is time for the NUPRC to ensure that these companies comply with regulations. The threat of divestment is a fallacy; these companies have long exploited Nigeria, often in collaboration with local partners. The time has come to hold them accountable and ensure they contribute their fair share towards upscaling Nigeria’s refining sector.
The government must halt the importation of petroleum products and fully support the Dangote Refinery and other modular refineries. Additionally, it should bolster the Nigerian National Petroleum Corporation (NNPC) Limited to ensure that the four government-owned refineries operate efficiently. In alignment with President Bola Tinubu’s Renewed Hope Agenda, which aims to boost the economy and lift 100 million Nigerians out of poverty, Nigeria cannot afford to rely on imported refined petroleum products. The country must reject becoming a dumping ground for substandard and dirty fuels.
For oil importers, the time has come to prioritise national interest over immediate financial gains. While importing cheaper, lower-quality fuels might offer short-term profits, the long-term harm to our country and our people far outweighs these benefits. True patriotism demands that the importers collaborate with Dangote refinery and others as well as regulatory authorities to clean up the sector and ensure that refined products are available at affordable prices for all Nigerians.
This is an opportunity to strengthen the economy and show that national interest transcends mere financial gain. Supporting local refining is crucial for economic stability, job creation, and the growth of related industries. It’s time to put the country’s welfare above individual profits and invest in a sustainable, self-reliant future for Nigeria.
Local refining by Dangote, NNPC, and modular refineries will not drive oil marketers out of business. On the contrary, there are ample opportunities within the value chains, and marketers play a crucial role in this sector. Strategic partnerships with local refineries offer a more sustainable and beneficial approach compared to importing from abroad. Supporting Nigeria’s local refining capacity is an investment in the country’s future and well-being. Ultimately, prioritising the success of our nation should outweigh other financial gains.
In conclusion, the Dangote Refinery offers a unique opportunity for Nigeria to redefine its economic trajectory. Its success, in part, hinges on the patriotic commitment of all involved. By embracing a collective sense of patriotism, the refinery will become a beacon of national achievement and a catalyst for broader economic development. It calls for a unified effort from all stakeholders to uphold the values of transparency, fairness, and shared progress.
Nigeria can no longer be the land of unfilled dreams and wasted potential; it is time for all compatriots to rise and join hands to build our nation. This collective action will embed peace and ensure plenty for all citizens. Nigeria is truly blessed, and this refinery is a major catalyst towards greater progress.
Abiodun writes from Lagos
