Latest news with #Dangote
Business Insider
2 days ago
- Business
- Business Insider
Africa's richest man picks foreign deals as Nigeria losses money to Angola via the Dangote Refinery
Hailed as a game-changer for Nigeria's energy sector, the $20 billion Dangote Refinery is currently at the center of a maritime dispute. African shipowners have expressed concern that the refinery is using ships from Angola to transport its crude and finished products, rather than Nigerian-owned vessels. The Dangote Petroleum Refinery, worth $20 billion, is a major project in Nigeria's energy sector. A maritime dispute has arisen due to the use of Angolan ships for transporting crude and finished products. Nigerian shipowners cite a lack of local vessel capacity as a hurdle in participating in refinery transportation operations. Ladi Olubowale, President of the African Shipowners Association in Nigeria, told the Punch that the Dangote Group's decision was driven by a scarcity of Nigerian vessels capable of managing such massive cargo operations. 'So I think the narrative about it is that the Dangote chartered most of the Angolan Fleet because they have vessels to be chartered, and we don't have. We don't have a vessel of that size, such as Supermax, Suezmax, or Aframax vessels, among others, that could be used,' he stated. 'Like the Angolan people, they have vessels to be chartered. If we had it, it would have been an opportunity that Dangote would have used as well. We are losing a lot of money. The benefits those guys are making, we are losing them. We are not even developing our capacity. For every trade, there are three elements: the trade, the capacity, the currency, and also the cargo,' Olubowale further explained. This development comes on the heels of rising dissatisfaction in Nigeria's local maritime industry. According to Edward Sowho, a member of the Nigerian Indigenous Shipowners Association, while Nigerian vessels are not currently involved, arrangements can be made if Dangote demonstrates a commitment to local businesses. 'The vessels he is using in Angola may not belong essentially to Angolans; there is always an arrangement for you to get vessels from somewhere else to give to a third party. For me, it is not enough of an excuse that there could be partnerships,' Sowho stated. 'If Dangote wants to use Nigerian-owned vessels, it is a matter of indicating interest. If he says I want to now confine myself to using Nigerian-flagged vessels in partnership with foreign owners, those things can be arranged. If I were to own a refinery like that and I want to move crude oil, I would approach a group like NISA and say, I need this size of vessel to move cargo, and I am sure they can arrange it. It's a question of I want to be indigenous and work with my people,' he elaborated. In light of this conversation, the Dangote Group has upheld its position, noting that demonstrated capacity would be a key determinant when selecting business partners. When contacted, spokesman Anthony Chiejine stated that the business will always work with shipowners who have the requisite capacity. 'He (Olubowale) is somebody in that business, and he has told you the challenges that they are facing. Ask the man in that sector why they are not attracting funding so that they can compete; that should be the question,' he said. Similar accusations against Dangote last week Last week, following a revelation by Aliko Dangote concerning local logistics problems, Olufemi Adewole, Executive Secretary of DAPPMAN, pointed out that most local merchants, especially small firms that depend on adaptable coastal supply networks, do not profit from Dangote's business practices. 'Since the advent of Dangote refinery, it has not been smooth sailing at all. We had preliminary meetings with their management. We received promises and assurances that we would be accommodated. We are ready and still willing to patronise Dangote. But the issue is, is Dangote ready to give us the product we want?' he stated. 'You don't get the price upfront,' Adewole explained. 'It is only after you've been cleared that a proforma invoice is issued. Meanwhile, there appears to be a select group Dangote prefers to trade with,' he added. Aliko Dangote himself voiced frustration over the numerous challenges surrounding the refinery's operations. According to the Nigerian billionaire, moving refined petroleum products from the Lekki plant costs Nigerian oil marketers more than procuring from offshore depots in adjacent countries like Togo. Dangote ascribed the pricing gap to high port taxes, bureaucratic hurdles, and inefficiencies in Nigeria's regulatory structure.
Business Insider
2 days ago
- Business
- Business Insider
Africa's richest man picks foreign deals as Nigeria money to Angola via the Dangote Refinery
Hailed as a game-changer for Nigeria's energy sector, the $20 billion Dangote Refinery is currently at the center of a maritime dispute. African shipowners have expressed concern that the refinery is using ships from Angola to transport its crude and finished products, rather than Nigerian-owned vessels. The Dangote Petroleum Refinery, worth $20 billion, is a major project in Nigeria's energy sector. A maritime dispute has arisen due to the use of Angolan ships for transporting crude and finished products. Nigerian shipowners cite a lack of local vessel capacity as a hurdle in participating in refinery transportation operations. Ladi Olubowale, President of the African Shipowners Association in Nigeria, told the Punch that the Dangote Group's decision was driven by a scarcity of Nigerian vessels capable of managing such massive cargo operations. 'So I think the narrative about it is that the Dangote chartered most of the Angolan Fleet because they have vessels to be chartered, and we don't have. We don't have a vessel of that size, such as Supermax, Suezmax, or Aframax vessels, among others, that could be used,' he stated. 'Like the Angolan people, they have vessels to be chartered. If we had it, it would have been an opportunity that Dangote would have used as well. We are losing a lot of money. The benefits those guys are making, we are losing them. We are not even developing our capacity. For every trade, there are three elements: the trade, the capacity, the currency, and also the cargo,' Olubowale further explained. This development comes on the heels of rising dissatisfaction in Nigeria's indigenous maritime industry. According to Edward Sowho, a member of the Nigerian Indigenous Shipowners Association, while Nigerian boats are not currently involved, arrangements can be made if Dangote demonstrates a commitment to local businesses. 'The vessels he is using in Angola may not belong essentially to Angolans; there is always an arrangement for you to get vessels from somewhere else to give to a third party. For me, it is not enough of an excuse that there could be partnerships,' Sowho stated. 'If Dangote wants to use Nigerian-owned vessels, it is a matter of indicating interest. If he says I want to now confine myself to using Nigerian-flagged vessels in partnership with foreign owners, those things can be arranged. If I were to own a refinery like that and I want to move crude oil, I would approach a group like NISA and say, I need this size of vessel to move cargo, and I am sure they can arrange it. It's a question of I want to be indigenous and work with my people,' he elaborated. In light of this conversation, the Dangote Group has upheld its position, noting that demonstrated capacity would be a key determinant when selecting business partners. When contacted, spokesman Anthony Chiejine stated that the business will always work with shipowners who have the requisite capacity. 'He (Olubowale) is somebody in that business, and he has told you the challenges that they are facing. Ask the man in that sector why they are not attracting funding so that they can compete; that should be the question,' he said. Similar accusations against Dangote last week Last week, following a revelation by Aliko Dangote concerning local logistics problems, Olufemi Adewole, Executive Secretary of DAPPMAN, pointed out that most local merchants, especially small firms that depend on adaptable coastal supply networks, do not profit from Dangote's business practices. 'Since the advent of Dangote refinery, it has not been smooth sailing at all. We had preliminary meetings with their management. We received promises and assurances that we would be accommodated. We are ready and still willing to patronise Dangote. But the issue is, is Dangote ready to give us the product we want?' he stated. 'You don't get the price upfront,' Adewole explained. 'It is only after you've been cleared that a proforma invoice is issued. Meanwhile, there appears to be a select group Dangote prefers to trade with,' he added. Aliko Dangote himself voiced frustration over the numerous challenges surrounding the refinery's operations. According to the Nigerian billionaire, moving refined petroleum products from the Lekki plant costs Nigerian oil marketers more than procuring from offshore depots in adjacent countries like Togo. Dangote ascribed the pricing gap to high port taxes, bureaucratic hurdles, and inefficiencies in Nigeria's regulatory structure.
Business Insider
6 days ago
- Business
- Business Insider
Lifting fuel from Dangote refinery costs more than importing from Togo, Dangote reveals
In a scathing indictment of the country's port infrastructure and pricing structure, Dangote revealed that lifting refined petroleum products from the Lekki-based refinery is now more expensive for oil marketers than buying from offshore storage depots in neighboring countries, such as Togo. Speaking bluntly at the just-concluded Global Commodity Insights Conference on West Africa's refined fuel market, regarding the economic inefficiencies afflicting the local market, Dangote cited a slew of port-related fees and regulatory constraints that local merchants confront. At the event, which was jointly hosted by the NMDPRA and S&P Global Commodity Insights in Abuja, Dangote noted that multiple fees at the refinery's loading point and discharge at domestic terminals, which are essentially absent when marketers import gasoline from offshore facilities such as the Lomé Floating Storage Terminal, were to blame. 'In terms of port charges, it is currently more expensive to load a domestic cargo of petroleum products from the Dangote Refinery, as customers pay both at the point of loading and the point of discharge. But when they load from Lome, which competes with us, they pay only at the point of discharge. This is simply unfair and unsustainable,' the Nigerian billionaire relayed. As reported by the Punch, after their findings, marketers who source fuel from the Dangote Refinery have to pay these charges. This was also reiterated by the Independent Petroleum Marketers Association of Nigeria National Publicity Secretary, Chinedu Ukadike. 'We don't load in Lomé, but for Nigerian distribution through the coastal route, it is easier to use the vessels here in Nigeria because it is interstate. Most of the international clearance and the rest is not applicable, because you would be able to avoid a lot of charges, both international and local charges,' he stated. 'It is better to load from Dangote via both means. But if you are loading coastal from another country, it is more difficult than when you are loading from Nigeria,' he added. However, some other players have cited the refinery's restrictive sale methods as a reason why there are complications in the supply chain. This point was elaborated on by Executive Secretary of DAPPMAN, Olufemi Adewole, who noted that the way Dangote conducts business does not benefit most local marketers, particularly small businesses that rely on flexible coastal supply chains. 'Since the advent of Dangote refinery, it has not been smooth sailing at all. We had preliminary meetings with their management. We received promises and assurances that we would be accommodated. We are ready and still willing to patronise Dangote. But the issue is, is Dangote ready to give us the product we want?' he stated. 'You don't get the price upfront,' Adewole explained. 'It is only after you've been cleared that a proforma invoice is issued. Meanwhile, there appears to be a select group Dangote prefers to trade with,' he added.
TimesLIVE
23-07-2025
- Business
- TimesLIVE
Cheap Russian oil products threaten African refineries: Dangote
Nigerian billionaire Aliko Dangote has warned discounted Russian petroleum products are pouring into African markets and risk undermining the continent's emerging refining industry. Dangote, who has been ramping up Africa's largest refinery — a $20bn (R351.27bn) facility with an initial capacity of 650,000 barrels per day on the outskirts of Lagos — has struggled to secure crude supplies locally even as he aims to expand the capacity to 700,000 bpd. "We are now increasingly facing the dumping of cheap, often toxic petroleum products, some of which are blended to substandard levels that would never be allowed in Europe or North America," Dangote said at an oil conference in Abuja. He attributed this trend to Western sanctions on Russian oil, which have prompted Moscow to offer steep discounts to alternative markets, including Africa. Russia's energy ministry did not immediately respond to a request for comment. Dangote also expressed concern about the Lomé floating oil market off the coast of Togo, which is dominated by international traders. With over 2-million barrels of stored petroleum products, Lomé has become a key hub for fuel imports and Dangote warned it could undermine Africa's refining efforts.
Zawya
23-07-2025
- Business
- Zawya
Nigeria's Dangote refinery expected to undertake 40-day maintenance at gasoline unit in December, IIR says
Nigeria's Dangote oil refinery is expected to carry out a 40-day planned maintenance at its gasoline-making unit in December, instead of in October as previously planned, industry monitor IIR said. The Dangote refinery did not immediately respond to a request for comment. The 650,000 barrel-per-day refinery will carry out catalyst replacement and reactor repairs in December's maintenance round, expected to start on December 4, IIR said. Dangote restarted its gasoline-making residue fluidised catalytic cracking unit on July 12, IIR added. (Reporting by Enes Tunagur; Editing by Jan Harvey)
