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Dangote Refinery Begins Local Production of Petrol

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•Sale begins immediately 

•NNPC to emerge sole buyer from new 650,000bpd facility

•OPEC’s August output falls to lowest since January despite Nigeria’s ‘small’ increase

NNPCL raises PMS pump price

28 years after after stoppage of local production, Nigeria has commenced the production of petrol, as the 650,000-barrels-per-day Dangote refinery located in Lagos has concluded the test production of petroleum  and will begin sale immediately.

This will bring much needed relief to Nigerians currently experiencing excruciation petrol scarcity in towns and cities across the country.

It was gathered that all the parameters for certifying the suitability of any refining asset have been satisfactorily ticked by the superstructure owned by Africa’s richest person, Mr Aliko Dangote.

The country despite spending billions of dollars on turnaround maintenance of its four official refineries for over two decades has been unable to get them to work.

Nigeria which consumes about 66 million litres of petrol daily on the average, currently spends a huge chunk of its budget, exceeding $10 billion by some estimates on the importation of the road fuel every year.

The development is expected to save the country several billions of dollars in foreign exchange as well as enhance the local availability of the critical fuel heavily used by businesses and homes.

In the same vein, Africa’s largest oil refining facility, is on the brink of producing significant volumes of petrol and the fuel could be made available as early as this week, Bloomberg reported yesterday.

Describing it as a landmark moment with the potential to transform the global market for the fuel, the report quoting two sources, stated that that product testing has started in earnest.

The giant new facility near the commercial hub of Lagos is on the verge of producing large amounts of the fuel and will be able to process 650,000 barrels a day of oil when at full capacity, turning more than half of that into petrol.

The ramp up is likely to be welcomed within the country, given that the state oil company — Nigeria’s main importer of fuel — said its ability to supply gasoline is being disrupted by debt and rising prices, Bloomberg stressed.

Dangote’s production is expected to impact billions of dollars of trade in fuel markets regionally and beyond as Nigeria remains a global demand sink for the fuel, receiving almost 250,000 barrels a day in shipments last year, mostly from Europe, according to data from analytics firm Vortexa Ltd.

Key to the plant’s petrol output is a unit called a reformer, which produces blendstock for the road fuel. That has started operating, with petrol production expected to begin by the end of the week, one of the people told the international news agency. Another said petrol would be rolled out this week.

At full rates, the refinery is expected to be able to produce about 330,000 barrels a day of petrol, according to Randy Hurburun, senior refinery analyst at consultancy Energy Aspects Ltd. That’s more than 1 per cent of global demand for the road fuel, which is about 27 million barrels a day.

Still, those volumes are a long way off, with Energy Aspects forecasting about 90,000 barrels a day of production in the fourth quarter, increasing to almost 250,000 in the second half of next year. Key to raising output further is another unit called a residue fluid catalytic cracker.

The refinery has been gradually ramping up after years of delays. The plant’s owner, Aliko Dangote, said in July the plant was aiming to start petrol production from August.

In response to questions about the various steps involved in ramping up gasoline output, a spokesman for Dangote told Bloomberg “we are on track”.

In the same vein, a Reuters report said yesterday that the refinery had begun processing petrol after delays caused by recent crude shortages, quoting an executive of the company.

The $20 billion refinery began operations in January with output of products including naphtha and jet fuel. The refinery promises to ease oil producer Nigeria’s costly reliance on imported oil products.

“We are testing the product (petrol) and subsequently it will start flowing into the product tanks,” said Devakumar Edwin, a vice president at Dangote Industries Limited. He did not however say exactly when the petrol would hit the local market.

Edwin said state-oil firm, the Nigerian National Petroleum Company Limited (NNPC), Nigeria’s sole importer of petrol, would buy the product exclusively.

“If no one is buying it, we will export it as we have been exporting our aviation jet fuel and diesel,” Edwin said.

The delivery of petrol into the Nigerian market will ease NNPC’s struggle to supply the local market. The company is reeling with debts of $6 billion to oil traders for supply since January, Reuters reported.

This has affected its ability to supply the local market where fuel queues have persisted since July.

“The news that Dangote is processing gasoline (petrol) couldn’t come at a more crucial time given NNPC’s statement about its difficulties securing imported supply due to financial strain,” said Clementine Wallop, Director, Sub-Saharan Africa at political risk consultancy Horizon Engage.

She said this “prompts the question of how NNPC will manage purchasing from Dangote, and impresses the need for greater transparency in its finances”.

Nigeria is Africa’s top oil producer yet it imports almost all its fuel due to years of neglect of its national refineries.

Meanwhile, a Reuters survey has indicated that the Organisation of Petroleum Exporting Countries (OPEC) oil output fell in August to its lowest since January, as unrest that disrupted Libyan supply added to the impact of ongoing voluntary supply cuts by other members and the wider OPEC+ alliance.

“Among countries posting higher output, there was a small increase in Nigeria which boosted exports,” the survey found.

OPEC pumped 26.36 million barrels per day last month, down 340,000 bpd from July, the survey found. This was the lowest total since January 2024, according to the survey.

A drop in Libyan exports and production amid a standoff between political factions over control of the central bank has helped boost oil prices and, sources say, increased the prospect that OPEC+ will proceed with a planned output hike from October.

Libya provided the largest supply loss last month of 290,000 bpd, the survey found. Output was disrupted at the Sharara field early in the month and at more fields towards the end, trimming output to an average of 900,000 bpd, the survey found.

Some flows data, such as that of Kpler, showed little impact on Libyan exports in August, although sources in the survey estimated the production impact to be more significant.

Libya is exempt from OPEC+ agreements to limit production. Other declines came from Iraq, which lowered exports in August according to the survey and is seeking to boost compliance with its OPEC target, and from Iran which is also exempt.

Iran has been boosting exports in the last few years despite US sanctions remaining in place and is still pumping close to the highest levels since 2018.

OPEC pumped about 220,000 bpd more than the implied target for the nine members covered by supply cut agreements, with Iraq still accounting for the bulk of the excess, the survey found.

(Additional information from Thisday)

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Addressing Regional Infrastructure Deficits through the North Central Development Commission

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By James Aduku Odaudu, PhD

Introduction

Infrastructure development is generally recognised as a key driver of economic growth, social stability, and national progress. However, most parts of Nigeria have, over time, suffered from significant infrastructure deficits that have hindered their development potentials. The North Central region of the country, comprising states such as Benue, Kogi, Kwara, Nasarawa, Niger, and Plateau, as well as the Federal Capital Territory (FCT), like other regions, faces challenges in transportation, energy, water supply, healthcare, and education infrastructure. To tackle these challenges, the establishment of the North Central Development Commission (NCDC) is crucial. This essay examines the role the NCDC can play in addressing infrastructure deficits in the North Central region, its potential impact, and the challenges it may face in achieving its mandate.

Current State of Infrastructure Deficits in North Central Nigeria

The North Central region of Nigeria is heavily endowed with vast natural resources and agricultural potential, which, ordinarily, should serve as catalysts for economic growth. However, it faces severe infrastructure challenges that hinder that bellies’ God-given resources. Some of the key deficits include:

1. Poor Road and Transportation Networks – Many roads in the region are in deplorable condition, making transportation of goods and people difficult. The absence of efficient rail networks further compounds the problem.

2. Insufficient Energy Supply – Despite hosting major hydroelectric dams like Kainji and Shiroro, many areas suffer from inadequate electricity supply, affecting industries and businesses.

3. Deficient Healthcare Facilities – The region has inadequate hospitals and healthcare centres, leading to poor health outcomes. Rural communities especially lack access to quality medical services.

4. Water and Sanitation Issues – Many communities face water shortages, poor sanitation, and lack of access to clean drinking water, contributing to disease outbreaks.

5. Educational Infrastructure Challenges – Schools in the region are often underfunded, with inadequate classrooms, teachers, and learning materials, limiting educational opportunities for young people.

The Role of the North Central Development Commission (NCDC)

The North Central Development Commission (NCDC), recently established by the Tinubu administration, is expected to serve as a special intervention agency aimed at addressing these pressing infrastructure needs of the region. Modelled after the Niger Delta Development Commission (NDDC), the North East Development Commission (NEDC), and other similar regional development commissions, the NCDC is expected to focus on the following key areas:

1. Improving Transportation and Road Networks

The commission can invest in the construction and rehabilitation of major roads, bridges, and railways to enhance connectivity within and outside the region. Prioritizing major highways and rural access roads will facilitate economic growth and boost commerce.

2. Enhancing Energy Supply

By partnering with power sector stakeholders, the NCDC can develop projects that expand electricity distribution, support renewable energy initiatives, and optimize the hydroelectric potential of the region. Special emphasis should be placed on rural electrification to support small businesses and industries.

3. Developing Healthcare Infrastructure

The commission can improve healthcare services by building and upgrading hospitals, equipping medical centres, and providing modern medical facilities. Additionally, it can facilitate the training and recruitment of healthcare professionals to bridge the gap in medical services.

4. Boosting Water Supply and Sanitation

Water projects, including borehole drilling, dam construction, and water treatment plants, can be undertaken by the NCDC to ensure access to clean and safe drinking water. Improved sanitation facilities will also help reduce the spread of waterborne diseases.

5. Investing in Education and Human Capital Development

The commission, given its mandates, can prioritize education by constructing new schools, renovating existing ones, and providing scholarships and vocational training programs. A well-educated workforce is essential for the region’s long-term development.

6. Promoting Agriculture and Industrial Development

Since agriculture is the backbone of the North Central economy, the NCDC is expected play significant roles in establishing new irrigation projects whilst simultaneously rehabilitating the very many abandoned ones, provide farm inputs, and establish agro-processing enterprises. Industrial parks and business hubs are also expected to attract the intervention of the commission in order to boost investments and create employment opportunities.

Expected Impact of the NCDC

The successful implementation of the NCDC’s programme is expected to yield numerous benefits, including:

Economic Growth: Improved infrastructure will facilitate trade, attract investors, and boost economic productivity in both urban and rural areas.

Job Creation: Construction projects, industrial development, and service sector expansion will generate employment opportunities.

Improved Quality of Life: Better healthcare, education, and basic amenities will enhance living standards across the region. The will a multiplier effect on rural-urban migration, as the presence of the hitherto unavailable facilities will make migration unattractive.

Security Enhancement: Infrastructure development can help address security challenges by reducing poverty and unemployment, which are often linked to criminal activities.

Challenges and Recommendations

As laudable as the aims and mandates of the commission are, the NCDC may face several challenges, which can hinder their realization. These include:

Corruption and Mismanagement: To prevent misappropriation of funds, transparency and accountability mechanisms must be put in place. Adequate monitoring and control of projects need to be established.

Political Interference: The commission should be, as much as humanly possible, insulated from political influence to ensure its programs are implemented effectively. This is a big call, as political office holders will be interested in projects, needed or not, to their constituencies. The same goes for appointments.

Funding Constraints: Adequate budgetary allocations and alternative funding sources, such as public-private partnerships (PPPs), should be explored. The Act establishing the commission has tried to address this by properly identifying sources of funding for the NCDC and similar organisations.

Bureaucratic Bottlenecks: Streamlining administrative processes will enhance efficiency and timely execution of projects. As much as possible, technocrats with administrative capacities should be identified to run the critical departments to ensure strict adherence to rules.

Conclusion

The North Central Development Commission (NCDC), as envisaged by the Establishment Act, presents a viable solution to addressing the region’s infrastructure deficits. By focusing on roads, energy, healthcare, water, education, and agriculture, the commission can unlock the economic potential of the North Central states. However, strong corporate governance, financial accountability, and efficient project execution are essential for the NCDC to achieve its mandate. With proper implementation, the NCDC can significantly contribute to regional development and national prosperity.

• Dr James Odaudu is a development administrator and can be reached at jamesaduku@gmail.com

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Addressing Regional Infrastructure Deficits through the North Central Development Commission

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By James Aduku Odaudu, PhD

Introduction

Infrastructure development is generally recognised as a key driver of economic growth, social stability, and national progress. However, most parts of Nigeria have, over time, suffered from significant infrastructure deficits that have hindered their development potentials. The North Central region of the country, comprising states such as Benue, Kogi, Kwara, Nasarawa, Niger, and Plateau, as well as the Federal Capital Territory (FCT), like other regions, faces challenges in transportation, energy, water supply, healthcare, and education infrastructure. To tackle these challenges, the establishment of the North Central Development Commission (NCDC) is crucial. This essay examines the role the NCDC can play in addressing infrastructure deficits in the North Central region, its potential impact, and the challenges it may face in achieving its mandate.

Current State of Infrastructure Deficits in North Central Nigeria

The North Central region of Nigeria is heavily endowed with vast natural resources and agricultural potential, which, ordinarily, should serve as catalysts for economic growth. However, it faces severe infrastructure challenges that hinder that bellies’ God-given resources. Some of the key deficits include:

1. Poor Road and Transportation Networks – Many roads in the region are in deplorable condition, making transportation of goods and people difficult. The absence of efficient rail networks further compounds the problem.

2. Insufficient Energy Supply – Despite hosting major hydroelectric dams like Kainji and Shiroro, many areas suffer from inadequate electricity supply, affecting industries and businesses.

3. Deficient Healthcare Facilities – The region has inadequate hospitals and healthcare centres, leading to poor health outcomes. Rural communities especially lack access to quality medical services.

4. Water and Sanitation Issues – Many communities face water shortages, poor sanitation, and lack of access to clean drinking water, contributing to disease outbreaks.

5. Educational Infrastructure Challenges – Schools in the region are often underfunded, with inadequate classrooms, teachers, and learning materials, limiting educational opportunities for young people.

The Role of the North Central Development Commission (NCDC)

The North Central Development Commission (NCDC), recently established by the Tinubu administration, is expected to serve as a special intervention agency aimed at addressing these pressing infrastructure needs of the region. Modelled after the Niger Delta Development Commission (NDDC), the North East Development Commission (NEDC), and other similar regional development commissions, the NCDC is expected to focus on the following key areas:

1. Improving Transportation and Road Networks

The commission can invest in the construction and rehabilitation of major roads, bridges, and railways to enhance connectivity within and outside the region. Prioritizing major highways and rural access roads will facilitate economic growth and boost commerce.

2. Enhancing Energy Supply

By partnering with power sector stakeholders, the NCDC can develop projects that expand electricity distribution, support renewable energy initiatives, and optimize the hydroelectric potential of the region. Special emphasis should be placed on rural electrification to support small businesses and industries.

3. Developing Healthcare Infrastructure

The commission can improve healthcare services by building and upgrading hospitals, equipping medical centres, and providing modern medical facilities. Additionally, it can facilitate the training and recruitment of healthcare professionals to bridge the gap in medical services.

4. Boosting Water Supply and Sanitation

Water projects, including borehole drilling, dam construction, and water treatment plants, can be undertaken by the NCDC to ensure access to clean and safe drinking water. Improved sanitation facilities will also help reduce the spread of waterborne diseases.

5. Investing in Education and Human Capital Development

The commission, given its mandates, can prioritize education by constructing new schools, renovating existing ones, and providing scholarships and vocational training programs. A well-educated workforce is essential for the region’s long-term development.

6. Promoting Agriculture and Industrial Development

Since agriculture is the backbone of the North Central economy, the NCDC is expected play significant roles in establishing new irrigation projects whilst simultaneously rehabilitating the very many abandoned ones, provide farm inputs, and establish agro-processing enterprises. Industrial parks and business hubs are also expected to attract the intervention of the commission in order to boost investments and create employment opportunities.

Expected Impact of the NCDC

The successful implementation of the NCDC’s programme is expected to yield numerous benefits, including:

Economic Growth: Improved infrastructure will facilitate trade, attract investors, and boost economic productivity in both urban and rural areas.

Job Creation: Construction projects, industrial development, and service sector expansion will generate employment opportunities.

Improved Quality of Life: Better healthcare, education, and basic amenities will enhance living standards across the region. The will a multiplier effect on rural-urban migration, as the presence of the hitherto unavailable facilities will make migration unattractive.

Security Enhancement: Infrastructure development can help address security challenges by reducing poverty and unemployment, which are often linked to criminal activities.

Challenges and Recommendations

As laudable as the aims and mandates of the commission are, the NCDC may face several challenges, which can hinder their realization. These include:

Corruption and Mismanagement: To prevent misappropriation of funds, transparency and accountability mechanisms must be put in place. Adequate monitoring and control of projects need to be established.

Political Interference: The commission should be, as much as humanly possible, insulated from political influence to ensure its programs are implemented effectively. This is a big call, as political office holders will be interested in projects, needed or not, to their constituencies. The same goes for appointments.

Funding Constraints: Adequate budgetary allocations and alternative funding sources, such as public-private partnerships (PPPs), should be explored. The Act establishing the commission has tried to address this by properly identifying sources of funding for the NCDC and similar organisations.

Bureaucratic Bottlenecks: Streamlining administrative processes will enhance efficiency and timely execution of projects. As much as possible, technocrats with administrative capacities should be identified to run the critical departments to ensure strict adherence to rules.

Conclusion

The North Central Development Commission (NCDC), as envisaged by the Establishment Act, presents a viable solution to addressing the region’s infrastructure deficits. By focusing on roads, energy, healthcare, water, education, and agriculture, the commission can unlock the economic potential of the North Central states. However, strong corporate governance, financial accountability, and efficient project execution are essential for the NCDC to achieve its mandate. With proper implementation, the NCDC can significantly contribute to regional development and national prosperity.

• Dr James Odaudu is a development administrator and can be reached at jamesaduku@gmail.com

Continue Reading

Uncategorized

Addressing Regional Infrastructure Deficits through the North Central Development Commission

Published

on

By

By James Aduku Odaudu, PhD

Introduction

Infrastructure development is generally recognised as a key driver of economic growth, social stability, and national progress. However, most parts of Nigeria have, over time, suffered from significant infrastructure deficits that have hindered their development potentials. The North Central region of the country, comprising states such as Benue, Kogi, Kwara, Nasarawa, Niger, and Plateau, as well as the Federal Capital Territory (FCT), like other regions, faces challenges in transportation, energy, water supply, healthcare, and education infrastructure. To tackle these challenges, the establishment of the North Central Development Commission (NCDC) is crucial. This essay examines the role the NCDC can play in addressing infrastructure deficits in the North Central region, its potential impact, and the challenges it may face in achieving its mandate.

Current State of Infrastructure Deficits in North Central Nigeria

The North Central region of Nigeria is heavily endowed with vast natural resources and agricultural potential, which, ordinarily, should serve as catalysts for economic growth. However, it faces severe infrastructure challenges that hinder that bellies’ God-given resources. Some of the key deficits include:

1. Poor Road and Transportation Networks – Many roads in the region are in deplorable condition, making transportation of goods and people difficult. The absence of efficient rail networks further compounds the problem.

2. Insufficient Energy Supply – Despite hosting major hydroelectric dams like Kainji and Shiroro, many areas suffer from inadequate electricity supply, affecting industries and businesses.

3. Deficient Healthcare Facilities – The region has inadequate hospitals and healthcare centres, leading to poor health outcomes. Rural communities especially lack access to quality medical services.

4. Water and Sanitation Issues – Many communities face water shortages, poor sanitation, and lack of access to clean drinking water, contributing to disease outbreaks.

5. Educational Infrastructure Challenges – Schools in the region are often underfunded, with inadequate classrooms, teachers, and learning materials, limiting educational opportunities for young people.

The Role of the North Central Development Commission (NCDC)

The North Central Development Commission (NCDC), recently established by the Tinubu administration, is expected to serve as a special intervention agency aimed at addressing these pressing infrastructure needs of the region. Modelled after the Niger Delta Development Commission (NDDC), the North East Development Commission (NEDC), and other similar regional development commissions, the NCDC is expected to focus on the following key areas:

1. Improving Transportation and Road Networks

The commission can invest in the construction and rehabilitation of major roads, bridges, and railways to enhance connectivity within and outside the region. Prioritizing major highways and rural access roads will facilitate economic growth and boost commerce.

2. Enhancing Energy Supply

By partnering with power sector stakeholders, the NCDC can develop projects that expand electricity distribution, support renewable energy initiatives, and optimize the hydroelectric potential of the region. Special emphasis should be placed on rural electrification to support small businesses and industries.

3. Developing Healthcare Infrastructure

The commission can improve healthcare services by building and upgrading hospitals, equipping medical centres, and providing modern medical facilities. Additionally, it can facilitate the training and recruitment of healthcare professionals to bridge the gap in medical services.

4. Boosting Water Supply and Sanitation

Water projects, including borehole drilling, dam construction, and water treatment plants, can be undertaken by the NCDC to ensure access to clean and safe drinking water. Improved sanitation facilities will also help reduce the spread of waterborne diseases.

5. Investing in Education and Human Capital Development

The commission, given its mandates, can prioritize education by constructing new schools, renovating existing ones, and providing scholarships and vocational training programs. A well-educated workforce is essential for the region’s long-term development.

6. Promoting Agriculture and Industrial Development

Since agriculture is the backbone of the North Central economy, the NCDC is expected play significant roles in establishing new irrigation projects whilst simultaneously rehabilitating the very many abandoned ones, provide farm inputs, and establish agro-processing enterprises. Industrial parks and business hubs are also expected to attract the intervention of the commission in order to boost investments and create employment opportunities.

Expected Impact of the NCDC

The successful implementation of the NCDC’s programme is expected to yield numerous benefits, including:

Economic Growth: Improved infrastructure will facilitate trade, attract investors, and boost economic productivity in both urban and rural areas.

Job Creation: Construction projects, industrial development, and service sector expansion will generate employment opportunities.

Improved Quality of Life: Better healthcare, education, and basic amenities will enhance living standards across the region. The will a multiplier effect on rural-urban migration, as the presence of the hitherto unavailable facilities will make migration unattractive.

Security Enhancement: Infrastructure development can help address security challenges by reducing poverty and unemployment, which are often linked to criminal activities.

Challenges and Recommendations

As laudable as the aims and mandates of the commission are, the NCDC may face several challenges, which can hinder their realization. These include:

Corruption and Mismanagement: To prevent misappropriation of funds, transparency and accountability mechanisms must be put in place. Adequate monitoring and control of projects need to be established.

Political Interference: The commission should be, as much as humanly possible, insulated from political influence to ensure its programs are implemented effectively. This is a big call, as political office holders will be interested in projects, needed or not, to their constituencies. The same goes for appointments.

Funding Constraints: Adequate budgetary allocations and alternative funding sources, such as public-private partnerships (PPPs), should be explored. The Act establishing the commission has tried to address this by properly identifying sources of funding for the NCDC and similar organisations.

Bureaucratic Bottlenecks: Streamlining administrative processes will enhance efficiency and timely execution of projects. As much as possible, technocrats with administrative capacities should be identified to run the critical departments to ensure strict adherence to rules.

Conclusion

The North Central Development Commission (NCDC), as envisaged by the Establishment Act, presents a viable solution to addressing the region’s infrastructure deficits. By focusing on roads, energy, healthcare, water, education, and agriculture, the commission can unlock the economic potential of the North Central states. However, strong corporate governance, financial accountability, and efficient project execution are essential for the NCDC to achieve its mandate. With proper implementation, the NCDC can significantly contribute to regional development and national prosperity.

• Dr James Odaudu is a development administrator and can be reached at jamesaduku@gmail.com

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