Dangote still dey find money
The oil-producing giant of Africa will no longer import petrol and it’s all thanks to Dangote
Burna Boy was in his bag when he said “Dangote still dey find money, who I be wey I no go find money?” The money is outside, Big Brains. Skim through today’s big news and set the pace for the rest of the day.
This Week’s Big Question - “Can you still afford the things you could comfortably afford last year?” Share your response with us here and we might feature it in the newsletter :) so be on the lookout.
- Margaret
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Reading time: ~ 3 mins
Let’s get into the big news you missed during the weekend:
Dangote Says Nigeria Will Stop Fuel Importation in June
Tinubu’s Eco-friendly Buses Set to Start Operating in Lagos, Oyo, Kwara, FCT, and Other States
The Big Deal
Dangote Says Nigeria Will Stop Fuel Importation in June
In 2023, Nigeria spent about ₦12 trillion, 18.68% higher than the ₦10 trillion spent in 2022 importing petroleum products. For a country rich in oil, the math isn’t mathing.
But Aliko Dangote, the chairman of Dangote Group, has a plan that could potentially end the importation of petroleum products in Nigeria by next month.
And his plan includes the entire continent…
Commissioned in May 2023, Dangote Refinery has already started providing diesel and aviation fuel in Nigeria. Its CEO, however, believes the refinery has the capability to supply the diesel and petrol needs of West Africa and the aviation fuel demand across the entire African continent. He also said that the refinery’s goal is to reduce Africa's reliance on importation in the coming years.
While speaking at the African CEO Forum Annual Summit in Kigali on Friday, Dangote gave a breakdown of the petroleum products his refinery can supply to the continent.
“We have enough gasoline to give to at least the entire West Africa, and diesel to give to West Africa and Central Africa. We have enough aviation fuel to give to the entire continent and also export some to Brazil and Mexico,” he said.
He added that the refinery is already producing jet fuel and diesel. They are also making plans to start producing gasoline in June.
One of the ways Dangote hopes to drive Africa to a state of self-sufficiency is by producing other resources like polypropylene, base oil and linear benzyl, the raw material used in producing detergent, which is not produced anywhere in Africa.
He also added that in the next three to four years, “Africa will not import any more fertiliser from anywhere. We will make Africa self-sufficient in potash, phosphate, and urea. We are at three million tonnes and in the next twenty months, we will be at six million tonnes of urea which is the entire capacity of Egypt. We are getting there.”
Why is this a big deal?
Only two of the top five oil-producing countries in Africa don’t import petroleum products in Africa and Nigeria isn’t one of them. In 2022, Nigeria was the country with the highest volume of petroleum products importation in the whole of Africa, creating a dent in the country’s economy. Aliko Dangote's proposed plan has the potential to cut reliance on imports, saving Nigeria foreign exchange that can be reinvested in more important areas. It could also reduce the impact of global market fluctuations and help stabilise fuel prices. The expansion of Dangote’s refinery would also help create employment opportunities for Nigerians, especially the youth.
Tinubu’s Eco-friendly Buses Set to Start Operating in Lagos, Oyo, Kwara, FCT, and Other States
If you live in Oyo, Lagos, Kwara, Kogi, Kaduna, Nasarawa, and the Federal Capital Territory (FCT), the next pimp pimp you’ll hear on the road today might be President Tinubu’s Compressed Natural Gas (CNG) vehicles.
In April, the Federal Government announced that the CNG initiative will be launched in May ahead of the president’s first year in office in a bid to relieve the masses of the financial hardship that came with the fuel subsidy removal. Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, confirmed that 530 of these buses are now going to be available in 6 states in Nigeria. Before the end of May, CNG buses will be a transportation option for many Nigerians.
Why should I care?
President Tinubu started the CNG initiative to make getting around Nigeria cheaper and make the air cleaner. These buses use compressed natural gas (like compressed air, but for cars) instead of regular petrol. The government plans to build CNG refilling stations across the country to make filling the tanks of these buses easier. They are also adding a touch of tech to the initiative by launching an app called MYCNG.NG that shows CNG conversion and refuelling sites across Nigeria.
We don’t have details about the pricing system yet but the buses should be cheaper than Uber and fancier than Danfos. If they are anything like the Bus Rapid Transit (BRT) in Lagos, commuting should cost less than ₦1,000.
Oluwagbemi said the distribution is on a demand-led basis and the buses are currently available only in Lagos, Oyo, Kwara, Kogu, Kaduna, Nasarawa and FCT. But the president’s aide, Bayo Onanuga, mentioned in April that the president had plans of purchasing 5,500 CNG vehicles including buses and tricycles so the CNG vehicles may be coming to your town soon.
Is the cost of living killing us?
For 26-year-old Tayo, delayed gratification has become a dreaded concept. “I just moved into my apartment and the cost of furnishing is making me rethink my life choices. Last year, I asked around and was told that a functioning air conditioner costs around ₦250,000. I’m still trying to process how the price changed to over ₦400,000. Let’s not even talk about the price of food, it’s crazy!”
Is the cost of living killing us? Don’t forget to send your response to this week’s big question:)
The Big Picks
Gunmen Kidnap Akwa Ibom Traditional Ruler : The Akwa Ibom State Police Command has confirmed the abduction of the Paramount Ruler of Mbo Local Government Area (LGA) of Akwa Ibom state, HRM Ogwong Okon A. Abang at his palace in Ebughu.
Looted Ancestral Stools Return To Oba Of Benin : The monarch of Benin, Ewuare II, has reclaimed two looted ceremonial stools from the German government.
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