Tekedia Forum

Dangote's $50B Renewable Energy Plan

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I have maintained that Nigeria will see a tremendous redesign by 2022 across different sectors. I have noted that ecommerce will begin to blossom then. I have also noted that power will be more available, and broadband costs will crash. The modelling is sound as we looked at many pieces and how Nigeria has advanced since 1999. We have a small report but that is for making me look smart before clients so that we can have amala on the kitchen table at home. So, that one is not public, yet.

I wrote few weeks ago on what Dangote is doing, after listening to his presentation during Elumelu Forum. It was evident that Dangote Group was building industrialized conglomerate that will have all the pieces to attack Nigeria's power sector. He is already selling power in one African country. He has accumulated the capabilities to do business in the power sector. As he noted, he generates a huge percentage of our nation's power capacity for his businesses.

Today, in a press release, informing the world that Aliko Dangote was the only African selected in Bloomberg 50 list of year's most influential people, they dropped:

Dangote's contribution to the world this year revolves around his dynamic attention to lessen food imports into his own country and Africa's largest nation, Nigeria, by focusing on domestic production of sugar and dairy, with 500 million liters of Nigerian milk to be produced by 2019. Earlier this year he announced a $50B USD plan to invest in renewable energy

Yes, Dangote wants to invest $50 billion in renewable energy.  That will eclipse all the funds put by distribution companies, transmission company of Nigeria and some of the generating companies. When you combine that with Dangote Refinery, you will see that Dangote Group could fix all the major energy problems, from fuel to electric power.

Did you notice that government is already saying that generating companies can sell power directly to customers? If that thinking becomes the "law", it means that Dangote Power can produce renewal power and pipe direct to customer homes, at scale. That regulation will allow it to issue meters and once he can have access to that, Discos will become inconsequential. (Pls I am not saying that Dangote is influencing the regulation. I am saying that the minister is talking and if that becomes the law, Dangote Group like any firm in Nigeria could benefit.)

We do think 2022 will be awesome for Nigeria. We will have power and the moments will begin. $50 billion renewal energy in Nigeria will be catalytic.

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More money than all the Gencos and Discos put together. Something seems to be deeply mysterious about certain challenges and problems facing this country, the truth is still being held hostage somewhere. Let's see...

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I thought he said he will be investing the money outside africa to diversify his portfolios  and geography?

Incidentally,in the light of this emergent electricity purchase policy of willing saler and buyer plan,I would think that,that infastructure development company you're a director in,with some chinese can be of help in this regime and help sort out power problems here,China is an expert in coal to power,dam etc.

We have abundant coal in enugu and gas that can supply all industries in the east and beyond,even the whole country if you can afford to buy.

I wish your group can look into coal to power in the east for a start,where china can leverage its expertise in this area and availability of investment funds,even if it means a little tinkering with your company's policy on investment to play in this field.

I think that your company has natural advantages to benefit from this new policy in nigeria and invest in power infrastructure,especially coal,where you'll not worry about pipeline destruction and cleanliness (carbon emmission) in nigeria,moreover,China has newer and less environmentally harmful coal-to-power technologies.

Not just dangote,your group is equipped to benefit from this new law in nigeria.

Anyi Okonkwo (DR).

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Thanks Anyi. Sure, we are already working in power, but the path is not necessarily through the standard path of working with one government ministry or not. Getting licensing right in Nigeria for coal is not easy. Many Chinese that received some rights in Jos have left. There is always a payment to pay daily and there is always another agency to send money. Yet, as you drain, your lease date is coming to maturity. It is not easy to mine in Nigeria. What is happening in oil happens in solid minerals. The only difference is that no one covers solid minerals because the players are small.

We prefer to finance a great govt renewable energy project that a local entrepreneur can take up. We do not want to be the project owner.

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In that case your perfect match is geometric power of distinguished professor Barth Nnaji,he is already doing a good job in aba,with general electric for aba power line and I know he's interested the renewal energy you're talking about.

He has secured chinese finance for another power project with general electric,called oma power plant.

He's also working towards solar and other forms of energy,it would be mutually beneficial and synergistic if you could contact him and discuss projects,you share mutual friendship with Pascal Dozie too,and he's involved in aba power line project.

Anyi Okonkwo.

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Noted. Thanks Anyi

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Dangote understands the nitty gritties of the Nigerian economy and he has the financial wherewithal to get things going. Given the increasing disposition of major countries of the world (UK, France and China) to renewable energy sources and also, the need to combat climate change, new energy is the way to go. This also brings to fore, the need for the federal government to reduce its dependence on oil and fast track the implementation of its plans towards diversification as stated in the ERGP. This is to ensure that the economy is not adversely affected when the price of oil crashes in the long term owing to a reduced demand. Thanks

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"This is to ensure that the economy is not adversely affected when the price of oil crashes in the long term owing to a reduced demand.". That is a line Osuji. There is a message in those words.  Technically, Dangote is working to prevent anything that will affect his empire negatively. Nice one

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This is a welcome development , you wonder why a country like Nigeria is not moving in the global trend of harnessing renewable energy , countries like china have harnessed all forms and sources of electricity that is known to man , it is believed that the problem with the Nigerian economy all revolve around energy but yet we have failed to get things right , the power sector got the large piece of the cake in the proposed budget and yet you wonder why nobody is talking about renewable energy , i read a comment below that emphasised on coal mining and i disagree with that because it is both expensive to operate and is a threat to the environment knowing fully well that china are the pioneers of global warming , solar energy is the bone of contention here and i do trust dangote in getting the best hands to ensure that this project is a complete success , it would take a gradual process for we as a country to get properly acquitted with the world of renewable energy but with what dangote is doing i am very hopeful for our country Nigeria , the government in its own part should ensure that this initiative receives all the support it need to ensure its complete success, i know there are those caucus that gains from the present state of Nigeria energy sector mostly multinational companies that deals on plants and so on , the likes of John Holt, Mikano, and so on, but its high time we get this right because this is crucial to the development of Nigeria as a whole and would see us taking a leap towards achieving our dreams in becoming a developed economy..

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'solar energy is the bone of contention here and i do trust dangote in getting the best hands to ensure that this project is a complete success". I do hope also. Renewables have burnt many in Nigeria, business-wise. I am confident he will make it right. He does always.