We have been inundated with very worrisome news emanating from the recently inaugurated giant, the Dangote Refinery. In summary, their challenges can be encapsulated into two major categories of concern.
The first category is self-inflicted, while the other is due to external factors, albeit with local origins.
Let me briefly explain, in case some of us have been hibernating under a rock. The Dangote Group has reported that International Oil Companies (IOCs) are doing everything within their power to frustrate their operations by either creating artificial scarcity of crude or inflating prices, each of which disrupts the planning and operations of the huge refinery.
This situation has forced them to source crude as far afield as the US, with grave consequences for their operations and plans.
The second issue involves the issuance of dubious licenses to various entities, leading to a market flooded with cheap and low-quality diesel, causing further disruptions in market penetration and pricing, among other issues.
Now, my thoughts. The Dangote Refinery is an economic game-changer, especially if you consider the many ways it impacts the economy. From infrastructure to job creation, technology transfer, forex earnings, revenue mobilization to different tiers of government, and the economic impact on allied SMEs, to mention a few.
These impacts are not trivial; they come with massive benefits to the government and the people of Nigeria. Therefore, their concerns must not only be heard but also addressed by the authorities with urgency.
The government must realize that the Dangote Refinery is no longer just one man’s project but now a national cause. As such, it must attract and receive sovereign backing in whatever struggles it faces.
This takes me back to the days of the Ibrahim Babangida regime, which promoted the notion of economic diplomacy, where the government acted as the chief marketing officer of Nigerian economic opportunities.
The Dangote Refinery must be the government’s major client. The government must urgently partner with it in this struggle.
I do not know the specifics of the agreements guiding operations between the IOCs, who are allegedly manipulating supply and pricing, but the relevant government bodies must urgently step in to ensure order in this sector.
As for the licensing issue caused by an errant government agency, addressing it should not be too difficult if corruption does not impede the process.
I really do not want to dwell on the woes of corruption as it is now very tiring, but when it begins to take on an incestuous dimension, a clear line has to be drawn.
Why allow carcinogenic products to enter the market for profit, undermining genuine, high-quality products being produced locally? It just defies common sense.
Everything must be done to protect this refinery until it stabilizes in its operations and is strong enough to stand on its own.
This is imperative, especially considering that out of the many entities given licenses to operate, Dangote Refinery is the only one not only operating but also producing in an iconic manner.
Weep not, my child, joy comes in the morning.
