The Federal Government said on Tuesday that it was prepared to give a completely legal operating licence to the 650,000 barrels per day capacity Dangote Petroleum Refinery.

This was declared at the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s Stakeholders’ Consultation Forum on Midstream and Petroleum Host Community Development Trust Regulations in Abuja.

The federal government’s NMDPRA, however, clarified that although it had given the $20 billion refinery a pre-commissioning permit, the Dangote refinery would shortly receive a fully operational licence.

The Dangote refinery was opened by former President Muhammadu Buhari in May 2023. In April of this year, the plant began supplying automotive petrol oil, sometimes known as diesel, to the local market. It has yet to release Premium Motor Spirit, popularly called petrol.

Speaking at the forum in Abuja on Tuesday, the Chief Executive of NMDPRA, Farouk Ahmed, told industry players and other stakeholders that the authority would issue a fully valid operating licence to the refinery very soon.

Ahmed, who was represented by the Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, Ogbugo Ukoha, pointed out that currently, only three refineries have valid licences.

“We have issued three refineries with three valid licences. We awarded Dangote refinery even in their pre-commissioning and sooner than later they will have full commission and a valid licence to also operate,” he stated.

He also stated that about 15 gas facilities across the country have valid licences, while more are undergoing processing.

The NMDPRA boss said there are 1,199 facilities with valid licences in the downstream, while more than 176 operators hold gas import permits.

Ahmed said 130 depots have valid licences, while 69 hold valid coastal vessel licences, adding that NMDPRA has licenced 9,464 retail outlets as of 10 am on April 30, 2024.

“In the gas processing facility within the midstream, there are about 15 of them with valid licences. And much is under processing.  If you go to the downstream sector, in the gas state of the downstream, more than 1,199 facilities have NMDPRA valid licences.

“More than 176 operators hold gas import permits. On the liquid licencing side of the downstream, there are 130 depots with valid licences and coastal vessels with more than 69 valid licences as of today. And in the retail outlets, we have 9,464 licenced retail outlets as of 10 am today, April 30,” Ahmed stated.

He explained why locations in the midstream and downstream arms of the oil sector were included as part of host communities, stating that emissions and effluence affect them.

Ahmed said the authority organised the forum for stakeholders to ventilate their ideas and propose measures that would further enable the NMDPRA to relate better with host communities in the mid- and downstream arms of the oil sector.

Aliko Dangote, chairman of Dangote Industries Limited, claims that the devaluation of naira created the biggest mess for his company in 2023.

Dangote made this known on Tuesday during the annual general meeting of Dangote Sugar Refinery Plc.

Dangote claims that the business is working hard to make sure that dividends are paid out this year.

He claimed that many businesses were also impacted and would not be able to pay dividends, particularly those in the food and beverage industries.

“We are doing whatever it takes to make sure that at the end of the day, we will be paying dividends because if you look at our dividends last year, it was almost 50 percent more so we will try and get out of the mess,” Dangote said.

“The biggest mess created was actually the devaluation of the naira from N460 to N1,400.

“You can see almost 97 percent of the companies, especially in food and beverages businesses, none of them will pay dividends this year for sure but, we will try and get out of it as soon as possible.

“We want to see that at the end of the day, no matter how small, we will be able to pay some dividends, especially if there is a rebound of the naira.”

• ‘We’ll Reapply For Merger Of Dangote Sugar With Nascon’

Speaking on the suspension of the planned merger of Dangote Sugar Refinery with Nascon Allied Industries Plc and Dangote Rice Limited, the chairman said it was put on hold because the Securities and Exchange Commission (SEC) wanted the rice factory to begin.

Dangote said the rice factory in Jigawa is expected to be commissioned soon, adding that Dangote Sugar will reapply for the merger when the time is right.

On April 19, Nascon announced the suspension of its proposed merger with Dangote Sugar.

Nascon said the merger was not completed due to the current non-operational status of Dangote Rice.

• Dangote Sugar To End Sugar Importation In 2028

Dangote said the company’s sugar master plan will enable the producer to sell only locally produced sugar in the next four years.

According to the chairman, the implementation of the backward integration policy will give the company the best future in terms of stability and prevent issues relating to exchange rate losses.

“The sugar master plan we are now taking is very, very serious,” he said.

“But to say the least, the industry as a whole, did not really push as we are supposed to push in terms of the backward integration.

“We have done a lot, but we also have our fears because if there is no proper implementation, we do not want to go and sink a lot of your money and we end up losing money because if government is not following or making sure that everybody behaves, then we will not be able to make money. But right now, I think they have called us.

“We have sat down and I can assure you on our own, we think the best future of this company is through the backward integration.

“Because backward integration will actually give you much more forfeit and stability and it will erase all these exchange rate losses.

“So, by the grace of God, in the next four years maximum, our company should be producing what we are selling currently, all domestic, 100 percent domestic.”

However, Dangote said if any sugar is imported by the company, it will only be to complement what it is producing.

The Port Harcourt-Aba train service, spanning 62 kilometres, has been launched by the federal government.

To promote and increase the use of the rail service, FG also announced a 4-day free train ride from May 1-4.

It is anticipated that commercial services will begin on May 7.

Transportation is one of President Bola Tinubu’s eight top priorities, according to a statement released by the federal ministry of transportation on Tuesday. As a result, the minister has directed his attention on the eastern rail corridor project since entering office.

Alkali said the commencement of the train service is part of the intensified drive by FG to facilitate trade, enhance mobility, and accessibility, as well as ensure connectivity between regions.

“With the completion of the rehabilitation of the Port-Harcourt to Aba rail corridor, the Ministry will continue to vigorously drive the contractor Messrs CCECC towards the speedy completion and delivery of the 181 kilometres Aba-Enugu stretch,” Alkali said.

“The fare for the Port-Harcourt to Aba train service has been pegged at #1000 for VIP & #800 for economy class.”

Fidet Okhiria, the managing director of the Nigeria Railway Corporation (NRC), said the locomotives and coaches used for the flag-off are refurbished ones.

Okhiria said the contractor is expected to deliver 50 narrow gauge locomotives and 100 narrow gauge coaches to be deployed along existing train corridors in the country.

On March 2, FG said the train services would commence by the end of March.

However, on March 29, the launch was postponed to April.

The rail line is a section of the Port Harcourt-Maiduguri railroad project initiated by former President Muhammadu Buhari’s administration.