Connect with us

Business

No power, no growth, Dangote warns govt

Published

on

The President and Chairman of Dangote Industries Limited, Aliko Dangote, on Tuesday called on the Federal Government to urgently convene a national retreat to resolve Nigeria’s persistent electricity crisis, warning that widespread power outages could undermine the country’s industrialisation drive and economic growth.

Dangote made the appeal at the official national launch of the National Industrial Policy 2025 in Abuja, themed “From Policy to Productivity: Implementing Nigeria’s Industrial Future.”

The policy emerged against the backdrop of a weak manufacturing sector, which, due to poor electricity supply, high production costs, limited access to finance, infrastructure deficits, and heavy reliance on imports, has been constrained.

The event was attended by top government officials, captains of industry, and development partners, with President Bola Tinubu represented by Vice President Kashim Shettima.

In his goodwill message, Dangote stressed that without stable electricity, Nigeria would struggle to create jobs, drive industrial productivity, or achieve sustainable economic growth.

“One of the things that I want to advise Your Excellency, Mr Vice President, is to call a national forum where we will have a one- or two-day retreat and resolve the issues of power. Because without power, Mr Vice President, there is no way in any country you can create growth or create jobs. So, power means growth. No power, no growth. So we must make sure that we tackle this issue,” he said.

His comments were greeted with applause from participants, including the Vice President. Dangote noted that while government policies to support industrialisation were commendable, the electricity challenge remained the single most critical constraint to manufacturing and job creation.

“We know what you call industrial policy; it is actually very, very important because the government cannot create jobs. They can only facilitate. And I think they have already given us whatever we need to create jobs. The policies that they have put in place are very good. Nigeria is a very big market. Not only that, this is a market where we are supposed to be serving other African nations,” he added.

See also  FG generates N5.21tn from oil sales in H1

However, he stressed that policy incentives alone were insufficient without strong infrastructure and protection of domestic industries.

“But one thing that we need is not only the policy. The policy is there. If you look at the incentives that we have for people to invest in Nigeria, actually, they are even more than what we need. The only thing that is remaining is the protection of industries.”

According to him, excessive importation remained a major threat to local manufacturing. “Even if you give us zero-interest loans, free land and power, if there is no protection, there is no way any industry will thrive here. Importation of anything is importation of poverty and exportation of jobs,” Dangote stated.

The billionaire industrialist lamented that many manufacturers now spend more on power generation than on production due to erratic electricity supply.

“So, people who are buying diesel, I would have loved to sell more diesel, but that is not the right way. The right way is to make sure there is power. Some factories spend more money generating electricity than producing goods. You have to set up your own power plant and also a standby. That does not make sense. There is nowhere you can get prosperity that way,” he added.

Dangote’s remarks came amid a recent five-day power supply disruption linked to gas maintenance activities, which triggered widespread blackouts across several parts of the country and heightened concerns among manufacturers and businesses.

Seven power plants across Nigeria experienced gas supply constraints between February 12 and 15, 2026, as Seplat Energy shut down a major facility for scheduled maintenance, leading to nationwide generation shortfalls.

See also  Otti seeks partnership with NAADI to grow Abia’s agriculture, economy

His comments reflected ongoing concerns in the organised private sector following the recent gas supply maintenance shutdown that affected power generation and led to load shedding across the country.

Stakeholders have repeatedly warned that frequent outages are forcing companies to rely on diesel and alternative energy sources, significantly raising production costs and contributing to inflation.

Dangote also highlighted the dominance of the private sector in Nigeria’s economy, urging stronger collaboration between government and businesses. “Nigeria is the only country in Africa where the private sector is bigger than the government. When you look at GDP, the private sector contributes almost 90 per cent, compared to the government’s 10 per cent,” he said. “We have what it takes to create massive consumption, massive industry, and disposable income.”

He added that entrepreneurs must also support national development by paying taxes and complying with regulations. “When we do our business, we must pay our taxes. It is a joint venture. The government is the major shareholder in every business. Today, the government makes more money in our cement business than anybody. But that is okay, so far they allow us to expand and prosper.”

Dangote further said recent economic reforms had improved investor confidence and currency stability. “With the policies that this government has implemented, people are beginning to see the results. Manufacturers are happy. The stability of the currency is encouraging investors to come into Nigeria,” he said.

He projected that the naira could strengthen further if import dependence is reduced. “We should manufacture what we consume. That is the only way to create jobs. If we block unnecessary imports and support local production, the naira will get stronger,” he said.

See also  CBN reduces interest rate to 27%

He further urged the government to strengthen policies protecting domestic manufacturers from dumping and unfair competition. “If you allow imports, take into consideration our own constraints — high interest rates, infrastructure deficits, and electricity challenges. If dumping is allowed, nobody will survive,” he said.

Dangote added that the current policy direction was already attracting investors and boosting confidence in the Nigerian economy.

“The trajectory that we are on now is very high. Many people are trying to invest in Nigeria. The only thing that the government must emphasise is the protection of local industries. Once we do that, we will create jobs and reduce the burden on the government.”

He concluded by reiterating the need for urgent reforms in the power sector. “It takes a truly patriotic person to say, I love to produce diesel, but if I have my way, I would rather there is constant power, and I will not produce diesel again,” he said.

Nigeria has continued to grapple with electricity supply challenges, with power generation frequently disrupted by gas shortages, infrastructure vandalism, and maintenance shutdowns. The recent gas maintenance exercise led to a temporary drop in generation capacity and widespread outages, affecting households, manufacturers, and businesses.

Experts say a stable power supply remains critical to the success of the National Industrial Policy 2025, which seeks to boost local production, reduce imports, and position Nigeria as a manufacturing hub in Africa.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Marketers push N800/litre petrol, seek import licences

Published

on

Independent petroleum marketers on Monday pushed for the restoration of importation rights and projected that the pump price of Premium Motor Spirit, popularly called petrol, could fall below N800 per litre as the Federal Government intensified efforts to force down the cost of petrol.

The development came as the Federal Government met with major operators in the downstream petroleum sector, including representatives of the Dangote Petroleum Refinery, over what it described as the disconnect between falling global crude oil prices and the relatively high pump prices of petrol in the domestic market.

The stakeholders’ meeting on cost-reflective pricing of PMS, held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja, brought together the Federal Competition and Consumer Protection Commission, the Independent Petroleum Marketers Association of Nigeria, the Major Energy Marketers Association of Nigeria, the Depot and Petroleum Products Retailers Association of Nigeria, the Depot and Petroleum Products Marketers Association of Nigeria, the Nigerian Association of Road Transport Owners, and other major operators in the sector.

Also in attendance were chief executives and representatives of TotalEnergies, Eterna Plc, Matrix Energy Group, officials of the NMDPRA, and delegates from the Dangote refinery.

The PUNCH reports that petrol prices have remained a major source of hardship for households and businesses in Nigeria, with pump prices surging following the spike in global crude oil prices triggered by tensions in the Middle East, particularly between Iran and the United States.

Although crude prices have moderated after diplomatic efforts eased the tensions, the reduction has yet to be fully reflected in domestic petrol prices, prompting the Federal Government to convene a stakeholders’ meeting aimed at driving a fair reduction in pump prices.

The National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, urged the government to permit independent marketers to import petroleum products directly, saying greater competition would ultimately reduce prices.

Maigandi also called for support for local refineries, particularly the Dangote Petroleum Refinery, while stressing the need to allow marketers to import products whenever necessary.

“Our major is that if products are to be distributed, let IPMAN buy products directly from the Dangote refinery and then, if we request importation, let IPMAN import by themselves. What we are trying to encourage is our local refinery. Let the government allow the local refinery to function properly and assist those who intend to refine products too,” he said.

The IPMAN president assured Nigerians that independent marketers were prepared to slash petrol prices significantly and projected that pump prices could fall below N800 per litre under the right market conditions.

“The price of the product is coming down bit by bit. Even when the price was increased, it was not increased at the same time. Likewise, now, as the price is coming down, we too are bringing the price down. If you check prices all over the country, you will see that independent petroleum marketers are reducing their prices gradually. Presently, we have reduced by N125 per litre nationwide,” he stated.

Miagandi added, “At any time when there is a reduction in price, we are ready to reduce the price to even below N800 per litre, not even N900. It depends on the way we buy the product from the private depot owners and the Dangote refinery.

See also  FG generates N5.21tn from oil sales in H1

“I thank God that the Dangote refinery has accepted independent petroleum marketers to start purchasing products directly. It is a plus, and very soon the populace will see the change in terms of price.”

The renewed push for importation comes amid an intense pricing battle in the downstream sector following the commencement of large-scale production at the Dangote refinery and the deregulation of the petrol market.

Speaking to journalists after a closed-door session with the stakeholders, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the government remained concerned that current petrol prices were not reflective of prevailing crude oil prices in the international market.

According to him, the government had engaged marketers in frank discussions aimed at ensuring that the reduction in global crude prices translates into lower pump prices for Nigerians.

Lokpobiri said, “The engagements are ongoing. We had very fruitful and frank discussions with the marketers and the leaders of the downstream sector of the petroleum industry with a view to driving down the price of PMS.

“My own opinion is that the petrol prices are not cost-reflective; they are not reflective of the cost of crude oil. But the marketers are also saying that crude oil prices are still high.

“In fact, somebody told us right there that the crude oil price for a month is still over $90 per barrel. But we are saying that when Brent crude was over $118 per barrel, the price was rapidly going up. Now that the price has come down drastically, why has petrol not come down correspondingly? That is a worry.”

The minister said the government had communicated the concerns of consumers to operators and directed them to return with practical measures that would lead to lower petrol prices.

“We have said that these are the issues of concern to the government. They have also said they will go back and think about what they can put together with a view to addressing the issue of the high cost of PMS that is not reflective of the price of crude in the market.

“We told them the concern of the Nigerian consumer, and they have also said they will go back and think of what concrete steps can be taken with a view to ensuring that the price drops,” he stated.

On when Nigerians should expect a reduction in petrol prices, Lokpobiri said discussions were still ongoing and declined to give a deadline. “As we called you today, we will call you as soon as possible. But the important thing is that discussions are ongoing,” he added.

Before the closed-door meeting, Lokpobiri warned petroleum marketers against using profits from previously acquired expensive fuel inventories as justification for maintaining high petrol prices, insisting that the benefits of lower replacement costs must be passed on to consumers.

The government said the continued disconnect between falling international crude oil prices and domestic petrol prices had become a source of concern, warning petroleum marketers against sustaining high pump prices of Premium Motor Spirit despite declining global crude prices and insisting that Nigerians should enjoy the benefits of lower replacement costs in a deregulated market.

He insisted that temporary gains realised from inventories purchased when crude oil prices were higher should not become the basis for sustaining elevated pump prices after global oil prices had declined.

See also  The president and his power sector burdens explicitly explained

“I am aware that PMS pricing is influenced by several factors beyond crude oil prices, but it is equally important to distinguish between genuine replacement cost and windfall gains arising from inventory management.

“Temporary gains realised from inventories acquired at higher prices should not become the basis for sustaining elevated pump prices after replacement costs have declined. As inventories are replenished at lower costs, the benefits of those lower costs should be transmitted to consumers in a timely and transparent manner. That is the essence of a competitive and efficiently functioning market,” he stated.

According to the minister, as marketers replenish their stocks at lower costs, reductions in procurement expenses should be reflected promptly in ex-depot and retail petrol prices in line with the principles of a competitive and efficient deregulated market.

The minister added that the Federal Government remained committed to protecting consumers in the post-subsidy era, stressing that deregulation was not designed to create opportunities for excessive pricing or market distortions but to deepen competition, improve efficiency, and deliver value to Nigerians.

He further warned that sustaining high energy costs beyond what prevailing market conditions justify could worsen inflationary pressures and undermine the gains recorded in moderating the country’s inflation rate.

The minister urged petroleum marketers and operators to immediately transmit the benefits of falling global crude oil prices to Nigerian consumers, warning that deregulation should not be exploited to sustain high petrol prices and generate windfall gains.

His comments come amid growing public concerns over the slow pace of reductions in petrol prices despite the sharp moderation in crude oil prices in recent months.

According to the minister, international crude prices traded between $61 and $65 per barrel in January before surging above $118 per barrel in April following heightened geopolitical tensions in the Middle East. However, prices have since declined to around $71 per barrel after the easing of the tensions.

He noted that while the earlier rise in crude prices exerted upward pressure on petrol prices, the subsequent decline had not been reflected proportionately in domestic pump prices.

“Ordinarily, such movements in crude oil prices should be reflected in the pricing of refined petroleum products. While the initial increase in crude prices understandably exerted upward pressure on PMS prices, the subsequent moderation in crude oil prices has not translated into a commensurate reduction in pump prices across the domestic market.

“This disconnect has understandably raised concerns. PMS peaked at about N1,596 per litre in May and currently sells at around N1,296 per litre. While there has been some reduction, the adjustment has not been commensurate with the decline in underlying market conditions,” the minister said.

He also called for the speedy operationalisation of the National Strategic Stock, describing it as a critical instrument for safeguarding national energy security and moderating future price shocks.

See also  Petrol May Hit ₦900/Litre This Week As OPEC+ Makes Fresh Plan On Production Hike

“The National Strategic Stock will strengthen national energy security, reduce exposure to supply disruptions, and moderate price volatility. There is urgency in ensuring that this mechanism becomes fully operational,” he said.

Nigeria’s petrol market has witnessed sharp fluctuations in prices over the past year, with pump prices peaking at over N1,500 per litre in some parts of the country following spikes in global crude oil prices and exchange rate volatility.

However, the recent decline in international oil prices and improved domestic refining capacity have increased pressure on marketers to cut prices, with many consumers expecting further reductions in the coming weeks.

The outcome of the government’s engagement with operators could determine the next phase of competition in the downstream sector and whether Nigerians will eventually see petrol prices fall to the N800 per litre level projected by marketers.

Earlier in his opening remarks, the Authority Chief Executive of the NMDPRA, Rabiu Umar, said the meeting was convened at the directive of the minister to address the growing concerns surrounding petrol pricing and ensure that Nigerians benefit from improvements in global market conditions.

Umar recalled that a similar engagement with operators in the domestic gas sector had recently resulted in a noticeable reduction in liquefied petroleum gas prices, expressing optimism that the same collaborative approach could deliver results in the petrol market.

“Just two weeks ago, many of us gathered in a similar forum to discuss the domestic gas sector. The candid dialogue and the actionable wins we secured during that session are already bearing fruit. Notably, we have seen LPG prices coming down significantly across the market, and we look forward to seeing even more reduction within the next two weeks.

“It is exactly this kind of tangible success that inspired today’s gathering. When regulators and industry operators sit at the same table, we do not just debate challenges; we engineer solutions,” he said.

The NMDPRA boss acknowledged that global crude prices had moderated significantly in recent weeks but lamented that the domestic retail market had yet to adjust accordingly.

“As a responsible regulatory authority, it is our duty to step in alongside you, our valued partners, to interrogate the market forces, understand the operational bottlenecks, and directly address this disconnect between falling replacement costs and sustained retail prices.

“Deregulation is not a licence for market distortion or unfair consumer pricing. It is intended to drive efficiency, maximise value, and protect the public interest. Sustainable profitability for marketers and consumer welfare are not mutually exclusive. We need to build a transparent ecosystem where the benefits of market improvements are passed down to the Nigerian consumer in a timely and fair manner,” Umar added.

He stressed that the objective of the meeting was not to dictate prices but to collaborate with industry stakeholders on practical solutions that would keep businesses viable while protecting consumers.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

Continue Reading

Business

UBA names Nnorom chairman as Elumelu exits board

Published

on

United Bank for Africa Plc has announced that its Group Chairman, Tony Elumelu, will retire from the Board of Directors of UBA on August 21, 2026.

The decision follows the completion of the 12-year tenure limit prescribed for non-executive directors of banks by the Central Bank of Nigeria.

This was contained in a statement issued by the bank and sent to The PUNCH on Monday. The statement, signed by the Group Head of Marketing and Corporate Communications for United Bank for Africa Plc, Alero Ladipo, noted that the financial institution is entering a new phase of strategic growth.

“At its meeting held on July 6, 2026, the board accepted Mr Elumelu’s retirement and elected Mr Emmanuel Nnorom, a Non-Executive Director of the bank, as his successor, with effect from August 21, 2026,” the statement read in part.

The board appreciated Elumelu for his visionary leadership and exceptional contribution to the strategic vision and institutional strength of the UBA Group.

Elumelu’s tenure has been described as a defining chapter in the group’s history. Under his stewardship, UBA was transformed into a pan-African institution operating in 20 African countries and four global financial centres, serving over 50 million customers.

Similarly, Nnorom is a chartered accountant with over 40 years’ experience in banking, finance, and audit. He brings to the role extensive leadership experience and deep institutional knowledge of the financial institution.

Commenting on his retirement, Elumelu said, “Serving United Bank for Africa has been one of the great privileges of my career. UBA has established a unique competitive position across Africa and globally, and I leave the board with great confidence in UBA’s future. Emmanuel Nnorom is a leader of integrity, experience, and sound judgement, and I am confident that the bank will continue to thrive under his leadership.”

See also  Petrol May Hit ₦900/Litre This Week As OPEC+ Makes Fresh Plan On Production Hike

Also speaking on his appointment, Nnorom said, “I am honoured by the trust the board has placed in me and deeply conscious of the legacy I inherit. I look forward to working with my colleagues on the board, management, and our staff across all our markets to sustain UBA’s momentum and continue delivering long-term value to our shareholders, customers, and stakeholders.”

United Bank for Africa Plc, widely recognised as Africa’s global bank, operates across 20 African countries and has an active footprint in the United Kingdom, the United States of America, France, and the United Arab Emirates. UBA provides retail, commercial, and institutional banking services while leading financial inclusion through cutting-edge technology.

The financial group stands as one of the largest employers in the financial sector on the African continent, boasting 25,000 employees group-wide. Established in 1949, the UBA Group has evolved significantly over the last 75 years.

Meanwhile, at the close of trading on Monday, the share price of the financial giant gained N1.40, representing a 3.41 per cent increase to close at N42.40 from N41.00 at the start of trading for the day. Investors traded 13.768 million shares valued at N577.82m in 1,566 deals.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

Continue Reading

Business

Dangote beats US, ships N757bn jet fuel to Europe – Report reveals

Published

on

Dangote Petroleum Refinery exported about 466,000 metric tonnes of jet fuel to Europe in June, valued at an estimated N757bn, overtaking shipments from the United States and others.

This is as Nigerian jet fuel exports to the continent reached their highest level since the country became a net exporter of aviation fuel in 2024.

According to a market report by S&P Global Commodity Insights, the refinery’s exports came as the European jet fuel market turned increasingly bearish following a sharp decline in prices from the highs recorded during the Middle East conflict.

The report stated that flows of jet fuel from Nigeria to Europe rose from 232,000 metric tonnes in May to 466,000 metric tonnes in June, the highest volume exported from the country to Europe since Nigeria became a net exporter of jet fuel in 2024, when the Dangote Refinery commenced aviation fuel production.

The June export volume is equivalent to about 582.5 million litres of jet fuel. At an estimated domestic value of N1,300 per litre, the shipment is worth about N757.25bn.

On the other hand, aviation fuel exports from the United States fell sharply in the past months. The report showed that jet fuel exports from the United States to Europe declined steadily over the same period, falling from a record 818,000 metric tonnes in April to 560,000 metric tonnes in May and further to 399,000 metric tonnes in June, leaving Nigeria as a bigger supplier to Europe during the month.

Commenting on the market, a trader attributed the oversupply partly to increased shipments from Dangote and the United States. “Jet is oversupplied because of high local refinery production; refineries pushed back maintenance to make the most of the high prices.

See also  Otti seeks partnership with NAADI to grow Abia’s agriculture, economy

“The US and Dangote also shipped large volumes. Now there are some flows resuming through the Suez, too, from the UAE, but let’s see how it goes,” the trader was quoted as saying.

The report noted that the European jet fuel forward curve had weakened significantly after reaching record highs during the Middle East war, as traders now anticipate an oversupplied summer market amid weaker-than-expected aviation demand.

According to Platts, part of S&P Global Commodity Insights, the Northwest Europe jet CIF cargo financial assessment for July dropped to $981.75 per metric tonne on June 30, down sharply from the all-time high of $1,694.25 per metric tonne recorded on March 30.

Similarly, the August contract declined from $1,507.50 per metric tonne on March 30 to $968.25 per metric tonne by June 30.

The report added that Europe could receive even more jet fuel supplies in the coming months as the East-West arbitrage remains attractive, encouraging exporters in the Middle East and India to ship cargoes westward.

While flows from the United Arab Emirates and Kuwait were absent in June, shipments from Saudi Arabia increased to about 106,000 metric tonnes, up from 7,000 metric tonnes in May, while exports from India rose from 129,000 metric tonnes to 197,000 metric tonnes over the same period.

Despite the current oversupply, two European jet fuel traders reportedly told Platts that market conditions would depend largely on developments in the Strait of Hormuz and the pace at which Middle Eastern refineries recover from disruptions caused by the recent conflict.

See also  The president and his power sector burdens explicitly explained

They also noted that stronger summer travel demand and refiners’ growing preference to maximise diesel production over jet fuel could gradually help rebalance the aviation fuel market.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that the Dangote refinery exported an estimated 1.66 billion litres of refined petroleum products in April 2026.

This was during the mounting tensions in the Middle East that caused disruption to global fuel supply routes.

An analysis of the NMDPRA’s April 2026 fact sheet showed that the country exported about 513 million litres of premium motor spirit, popularly called ‘petrol’; 534 million litres of automotive gas oil, also known as diesel; and 615 million litres of aviation fuel within the month in April.

The Dangote refinery is the only major functional refinery in Nigeria that currently produces enough refined petroleum products for both local consumption and export.

Nigeria has become a net petrol exporter for the first time in decades due to rising output from the Dangote refinery. The refinery had earlier exported about 434 million litres of petrol in March after domestic production exceeded local consumption levels.

The latest figures underscore Nigeria’s gradual transition from a major importer of refined petroleum products to an export hub within Africa. It was observed that jet fuel exports may rise further with the instability caused by the Middle East crisis, which disrupted traditional supply chains serving Europe and other regions.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

Continue Reading

Trending