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Dangote Refinery to Reduce Africa’s Petroleum Importation by 36%, says APPO

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African Petroleum Producers Organisation (APPO) has said that the establishment of the Dangote Oil Refinery will bring about a 36 percent reduction in the importation of petroleum productions into the continent.

Besides, the organization expressed a belief that the success of the Dangote Refinery project could incentivize the rise of similar projects across Africa despite the current focus on energy transition.

The Secretary-General, African Petroleum Producers Organisation, Dr. Omar Farouk Ibrahim, said in an interview that Dangote Refinery shall be supplying over 12% of Africa’s product demand when it becomes operational.

Ibrahim stated, “To appreciate the impact that the Dangote refinery is going to have on African economies and especially on the supply of petroleum products, and to some extent the conservation of scarce foreign exchange, a look at some statistics on the continent’s petroleum products demand and supply is in order.

“Currently, Africa’s daily petroleum demand is 4.3 million barrels per day (mbd). Of this volume, 57% is produced locally (on the continent) while 43% is imported. When Dangote is fully onstream, the percentage of Africa’s products import shall drop to 36%. This is even as the total volume of products demand rises to 5.4 mbd. You can therefore see the huge impact that the Dangote refinery shall be made to the supply of the overall product in Africa. Dangote shall be supplying over 12% of Africa’s products demand.

“That is huge savings for a continent that has scarce foreign exchange and little to export. We shall save from buying abroad and from shipping and insurance costs. Furthermore, the success of Dangote could incentivize the rise of similar projects, the noise about energy transition notwithstanding,” oil analysts noted.

Ibrahim also hailed Dangote’s decision to go ahead with the construction of crude oil refinery despite a campaign against fossil fuels, adding that the demand for fossil fuel is going to continue for several decades to come.

“We believe that Dangote made a very wise decision to proceed with the project, despite the campaign against fossil fuels. There will be demand for petroleum products for many decades to come. Indeed, we see petroleum products prices rising steadily in the next few years for at least two decades.

“This is because new refineries are not coming up in Europe and North America, where Africa imports 34% of its supplies because their governments have embraced energy transition, some willingly, others due to pressure. So, some of the sources of Africa’s imports are going to dry up. At the same time, Africa will not be in a position to fast-track the development of non-fossil fuels.

“In fact, even the developed countries will not be able to move as fast as is projected. We see Africa and many regions of the world continuing to rely on fossil fuel energy at a time when deliberate decisions are being made to stop funding fossil fuel projects. The world risks abandoning fossil for renewable, but in the end not getting the renewables, and at the same time losing the fossils due to deliberate neglect”, he explained.

Ibrahim urged African refiners to invest more in technology and develop the right expertise to manage their refineries, which are going to serve the continent as western refiners halt the establishment of more refineries.

He stated, “African refiners have no cause to worry about their investments. All they need to do is to ensure that they have developed the right expertise to manage their refineries, get honest managers and staff to run their business, and come together to join APPO’s initiative to establish foundries and other equipment manufacturing plants to service their refineries. Once they have these, the market is there for their products.

“For the next three decades or more, Africa shall continue to use fossil fuel-driven vehicles, and with its population projected to double within that period, there will be a huge market for petroleum products. Africa cannot rapidly transit into electric vehicles, as the bulk of the vehicles on our roads today and in the next 20-30 years are going to be non-electric. There is the market, and we should not be discouraged from thinking positively”, the APPO scribe noted.

He disclosed that APPO is working with its Member Countries to construct cross-border energy infrastructure like pipelines for crude and products as well as for oil and gas terminals, depots, etc.

“Once we have this infrastructure on the ground, the markets for African refiners shall not be limited to their home countries. Fortuitously, the African Continental Free Trade Agreement, which came into force in 2021, is there to support this initiative”, he added.

BIG STORY

Lagos Wants To Colonise North With Tax Reform Bills, National Assembly Must Reject Them — Kwankwaso

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Rabiu Kwankwaso, former governor of Kano, has called on the national assembly to reject any attempts to “cheat” the north through the proposed tax reform bills.

Kwankwaso made this statement on Sunday during the convocation ceremony of Skyline University at the Ammani Centre, Nassarawa GRA, Kano state.

He accused Lagos of “making a lot of efforts” to colonise the north, and further alleged that the president, who hails from Lagos, is interfering in the emirship dispute in Kano.

“The Emir has just been installed at this difficult time in our country, especially in this part of the country, northern Nigeria,” he said.

“Today, we can see very clearly that there is a lot of effort from the Lagos axis to colonise this part of the country.”

“Today, Lagos wouldn’t allow us to choose our Emir. Lagos has to come to the centre of Kano to put their own Emir.”

“Today, we are aware that the Lagos young men are working so hard to impose and take away our taxes from Kano and this part of the country to Lagos.”

The Kano emirship is currently the subject of litigation. Muhammadu Sanusi was reinstated as Emir of Kano in May, but Aminu Bayero, who was previously removed to make way for Sanusi, has refused to step aside.

  • TAX REFORM BILLS

Kwankwaso, the New Nigeria Peoples Party (NNPP) presidential candidate in the 2023 elections, also claimed that many factory owners have been “forced” to relocate their headquarters to Lagos, enabling the southwest state to claim “all the taxes.”

“We have seen the effort of some people to make the poor poorer and the rich richer. And I believe this is very dangerous for us,” Kwankwaso said.

“This part of the country today is suffering from a serious economic crunch, insecurity, poverty, hunger, and diseases.”

“I believe this is not good for the cordial existence of our country. At this moment, I would like to call on all our national assembly members to keep their eyes open so that they don’t do anything that will cheat the people of northern Nigeria, especially here in Kano.”

“We are witnesses to what happened during the first term of Olusegun Obasanjo from 1999 to 2003, where our members of the national assembly were bribed into collecting a huge sum of money to support onshore/offshore in the country.”

“That law put a huge blow on our economy in northern Nigeria and all other states.”

  • BACKGROUND

On October 3, President Tinubu asked the national assembly to consider and pass four tax reform bills.

These proposed legislations, which have sparked intense debate, include the Nigeria tax bill, the tax administration bill, and the joint revenue board establishment bill.

The president also requested the parliament repeal the law establishing the Federal Inland Revenue Service (FIRS) and replace it with the Nigeria Revenue Service.

On October 28, the Northern States Governors Forum (NSGF) opposed the bills, arguing that the proposed legislation would harm the region’s interests. The governors asked the national assembly to reject the bills, calling for the equitable and fair implementation of national policies across all regions.

The National Economic Council (NEC) also urged Tinubu to withdraw the bills to allow for further consultations.

On November 1, President Tinubu stated that the bills would not be withdrawn, emphasizing that the proposed laws are designed to improve the lives of Nigerians and optimise existing tax frameworks.

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BIG STORY

PDP Rejects Outcome Of Ondo Election, Calls For Review

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The Peoples Democratic Party (PDP) has rejected the result of the Ondo state governorship election.

Lucky Aiyedatiwa, candidate of the All Progressives Congress (APC), was declared the winner of the Ondo state governorship election held on Saturday.

Aiyedatiwa, the incumbent governor of Ondo state, won the election in all 18 LGAs, securing 366,781 votes to defeat his closest rival, Agboola Ajayi of the Peoples Democratic Party (PDP), who received 117,845 votes.

In a statement issued on Sunday, Debo Ologunagba, PDP spokesperson, said the poll “runs short of all expectations and requirements of a free, fair and credible election.”

“The Peoples Democratic Party and indeed all lovers of democracy in Nigeria and across the world have just witnessed the worst election conducted by the Independent National Electoral Commission (INEC),” the statement reads.

Ologunagba further claimed that the election “witnessed the height of electoral swindle, deceit and manipulation” allegedly perpetrated by the APC.

He added that the poll “witnessed widespread election merchandising, monetisation and barefaced vote buying” and voter suppression.

Ologunagba called on Nigerians and the international community to take “serious action” to address all forms of election manipulation and protect the nation’s democracy.

The PDP spokesman concluded by stating that the party will “take appropriate action” after reviewing the election outcome.

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BIG STORY

Obasanjo Calls For Leadership Change At INEC, Seeks Shorter Tenure

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Former President Olusegun Obasanjo has called for the appointment of new, credible leaders for the Independent National Electoral Commission (INEC) with short tenures, in order to prevent corruption and restore trust in Nigeria’s electoral system.

Obasanjo made the comments during the Chinua Achebe Leadership Forum held at Yale University in New Haven, Connecticut, USA.

In his keynote address at the forum, titled ‘Leadership failure and state capture in Nigeria,’ Obasanjo described the 2023 general elections as a “travesty.”

The former president emphasized that reforming the electoral system is a critical issue for the country, stressing the need for thorough vetting of INEC officials to avoid partisan appointments.

“As a matter of urgency, we must make sure the INEC chairperson and his or her staff are thoroughly vetted,” Obasanjo said.

“The vetting exercise should yield dispassionate, non-partisan actors with impeccable reputations.”

“Nigeria must ensure the appointment of new credible INEC leadership at the federal, state, local government, and municipal—city, town, and village levels—with short tenures—to prevent undesirable political influence and corruption and re-establish trust in the electoral systems by its citizens.”

“The INEC chairperson must not only be absolutely above board, but he must also be transparently independent and incorruptible.”

Obasanjo further stated that Nigeria must prevent electoral interference at every level, protecting elections from both foreign and local malevolent actors to safeguard democratic integrity.

He also advocated for the implementation of clearly defined financial regulations for political campaigns to ensure transparency and accountability.

“On the local level, we should implement and enforce clearly defined financial regulations for political campaigns and establish effective control and enforcement mechanisms to ensure compliance with financial regulations,” the former president said.

“And intensify activities to prepare and secure the voting infrastructure, such as safeguarding the technology used to collate, transmit, verify, and disseminate election results.”

Obasanjo alleged that INEC deliberately failed to use the bimodal voter accreditation system (BVAS) and election viewing portal (IReV) technologies during the 2023 presidential election.

“The BVAS and IReV are two technological innovations that, prior to 2023, were celebrated for their potential to enhance the accuracy and transparency of our election results, eliminate the threat of election rigging, and boost public trust in electoral outcomes,” he said.

“These technologies were touted by the INEC chairman himself. In the end, these technologies did not fail.”

“INEC willfully failed to use or implement them, which resulted in widespread voting irregularities. It was a case of inviting the fox into the henhouse.”

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