The Nigerian National Petroleum Corporation(NNPC) has explained the basis of investing in Dangote Refinery. I must confess that the argument is very weak. Yes, the government believes that investing in the refinery will force Dangote Refinery to buy Nigerian crude even if there are alternatives in other markets.

The GMD of NNPC, Mele Kyari, noted the “decision to buy the 20 per cent stake in the Dangote refinery was to ensure the plant buys crude from Nigeria….He explained that the 20 per cent stake valued at $2.6 billion is tied to the refinery buying crude oil from Nigeria, adding that without the equity, Dangote refinery could buy cheap crude from Venezuela and import it to the country.”

I am not sure a country should make a decision that way when you have four idle refineries. Since the national refineries are not running, all we need to do is to get them running, and if we do that, the issue of Dangote Refinery capacity will not matter. By making a decision to invest to have demand, we are saying that the national refineries are forever gone!

Mr Kyari before the House of Representatives Committee on Finance at the interactive session on the Medium Term Expenditure Framework (MTEF):

“He (Dangote) has the right to buy oil from anywhere. So you can’t force him to buy. We structured our equity participation that this refinery must buy at least 300,000 crude from us. This guarantees your market,” Mr Kyari said.

“This refinery is a very complex refinery, complex in our industry because it can crack any crude. So, it can buy any cheap crude from anywhere, and bring it into this country and leave you to your crude.

“We simply saw this opportunity, we said are not going to take any government money to put into this. We are borrowing money from the AfriExim consortium to pay for our initial payment and also tied his subsequent payment to him buying from our production.”

“Our decision to take equity in the Dangote refinery was a very calculated and conscious decision. First, there is no resource-dependent country like ours anywhere and with a national oil company will have a venture of this size and magnitude with its very clear security implications that is situated in a free trade zone. Literally, this refinery is not in this country.”

Good People, let me apologize for the breakdown in our programming today. We scheduled an open webinar today at 4.30pm WAT but someone I did not make it. My team mistakenly logged the time as 4.30pm my US time in Calendly. Sure, it was all my fault.

By the time I was alerted, I got there 90 minutes late. Yet,  many were still waiting. We began, but I stopped the event since completing the 90-minute presentation would have taken all the Saturdays from families. The event is now rescheduled as follows:

Topic: African Empires of the Future: Path to the Castles
Presenter: Ndubuisi Ekekwe
Date: Saturday, Sept 4, 2021
Time: 2.30pm WAT

Zoom link:  We have provided the Zoom link on click here

Again, my apologies.

Free Webinar Rescheduled: “African Empires of the Future”, Sept 4, 2.30pm WAT

Beat the time and register for the best business school. You will graduate with new perspectives on business mechanics. We are high priests on the physics of entrepreneurial capitalism. Click and join … as time is running out! Begin here and accelerate your leadership ascent!

Just to welcome Mercy Frank, the TV anchor at Silverbird Television, to the 6th edition of Tekedia Mini-MBA. Welcome – we are truly excited and honoured for the convergence of the best, thinkers, celebrities, innovators and champions, in our Institute. People, we can now have a TV edition of Tekedia Mini-MBA!

Tekedia Institute – Africa’s modern business school; register here.

• Topic: African Empires of the Future: Path to the Castles
• Presenter: Ndubuisi Ekekwe
• Date: Saturday, Aug 28, 2021
• Time: 4.30pm WAT
• Zoom link:  this is the Zoom link here. (Only the first 100 will be on Zoom. Other members will watch via a webcast we will synch here via YouTube)