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Dangote acquires 4,000 machines for refinery expansion

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Dangote Industries Limited has acquired an additional 4,000 pieces of construction equipment for the expansion of its Lekki refinery to 1.4 million barrels per day, bringing its fleet to 6,500 machines.

The Group Vice President, Oil and Gas and Fertiliser, Devakumar Edwin, disclosed this Friday while briefing editors during a tour of the refinery in Ibeju-Lekki, Lagos.

Edwin said the company initially acquired 2,563 pieces of equipment after Julius Berger and other contractors indicated that they lacked the capacity to construct the main factory buildings of the refinery.

“We ended up buying 2,563 pieces of equipment. We became the second largest company in the world in terms of construction equipment. Today, we are the largest because of the expansion. We have bought 4,000 more pieces of equipment; we have 6,500 pieces of construction equipment. We bought 330 cranes,” he said.

He explained that the decision to acquire the equipment rather than engage foreign engineering, procurement and construction contractors was taken by the President of the Dangote Group, Aliko Dangote, after the company found that hiring overseas contractors would significantly increase the project cost.

“If I bring in a foreign contractor, I’ll have to ship in all his equipment, and I’ll have to ship back all his equipment, and those guys will also try to depreciate their equipment by adding it to our cost. By the end of the day, we end up paying a lot of money. So my president said, very well, let’s go and buy all the construction equipment,” he said.

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Edwin recalled that Julius Berger, after reviewing the refinery’s drawings, declined to undertake the construction of the main process buildings. “They said, sorry, we cannot do any of your factory buildings. We don’t have the capacity,” he said.

He said the construction firm subsequently handled 43 of about 127 auxiliary buildings, including canteens, transformer rooms, control rooms and fire-fighting houses.

According to Edwin, the decision to build the company’s own construction equipment fleet was also driven by Nigeria’s infrastructure deficit. He recalled that when Dangote built the Apapa sugar refinery in 1998, there were only two large cranes in Nigeria, each with a 150-tonne capacity.

For the Lekki refinery project, the company hired one of only two 5,000-tonne cranes in the world, while also purchasing 330 cranes of its own. “When we are operating in a country with an infrastructure deficit, it takes a lot of time to plan, a lot of money to invest in all these things that industries do not require,” he stated.

Edwin said much of the infrastructure developed for the first phase of the refinery would also be deployed for the expansion, reducing the cost and time required for the project.

He listed the existing infrastructure to include a granite quarry with a 10 million-tonne capacity, 82 concrete batching plants, 203 transit mixers, a private port, an oxygen and welding-gas plant and accommodation facilities for 50,000 workers.

He said the refinery, originally designed to process 650,000 barrels of crude oil per day, is already operating above its nameplate capacity. “We have designed the refinery for 650,000, but we are now operating at 700,000. That is over 50,000 barrels per day above the design capacity. So the production volumes are even higher,” Edwin said.

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On the decision to execute the expansion using Dangote’s own project company, Edwin said international contractors had quoted fees of about 12.5 per cent of an estimated $19.5bn capital cost.

He said the proposed fees would have amounted to about $2.5bn, prompting Dangote to reject the arrangement. “I said, it’s madness to go and give two and a half billion dollars to a contractor as just a fee for designing and supervising,” Edwin said.

He quoted Dangote as replying, “Edwin, have you forgotten the plaque on my table?” According to Edwin, the plaque carries the inscription, ‘Nothing is impossible’.

“That is how we took up the challenge, and a Nigerian company, Dangote Projects Limited, designed the detailed engineering, went for the tenders, bought every single item, even the nuts and bolts, we bought directly, and engaged contractors, and we constructed the refinery,” he said.

Edwin added that the refinery remains the world’s largest single-train petroleum refinery, noting that the largest facility before it had a capacity of 430,000 barrels per day.

He said the original refinery design was based on both import substitution and exports, with 44 per cent of production sufficient to meet Nigeria’s requirement and 56 per cent earmarked for export.

“95 per cent of our production is high value, either petrol or diesel or jet fuel. Only five per cent is lower, and even that five per cent is actually an industrial product, carbon black feedstock,” he explained.

He added that the refinery was designed to produce Euro 5 and Euro 6-grade products and process a wide range of African crude grades as well as United States West Texas Intermediate crude.

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According to Edwin, Dangote will boast 2.1 mbpd refining capacity after the expansion and the construction of its 700,000 bpd refinery in Kenya.

Source: punchng.com

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US Government Warns American Business Executives About Investing In Nigeria

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A United States Department of State report has warned American business executives in Nigeria.

The department warned that insecurity, corruption, port inefficiencies, and regulatory uncertainty could significantly hinder investment in Nigeria.

It was reports that the department gave the warning in its 2026 Investment Climate Statements on Nigeria.

The report explained that those challenges continue to weigh on the country’s business environment despite signs of macroeconomic stability.

The department said the country’s investment landscape has been shaped by the outcomes of “painful but necessary” structural reforms introduced by the President Bola Tinubu administration.

The report said the removal of fuel subsidies and liberalisation of the foreign exchange market initially triggered significant economic volatility, although early 2026 indicators suggested some stabilisation.

However, it warned that security concerns, administrative bottlenecks and the social consequences of economic reforms remain significant considerations for foreign investors.

“The security environment is a primary variable which gives pause to potential investors,” the report said.

It noted that although attacks on oil infrastructure in the Niger Delta have decreased, oil theft and illegal bunkering persist.

In the North, the expansion of terrorist and ‘bandit’ groups continues to degrade the climate for agribusiness and mining,” the document added.

The report also raised concerns about how regulators treat foreign business executives in disputes, citing the detention of Tigran Gambaryan, a US citizen and Binance executive, for nearly eight months in 2024.

“Furthermore, the use of coercive exit bans and detentions, highlighted by the high-profile nearly eight-month detention in 2024 of U.S. citizen Binance employee Tigran Gambaryan, serves as a cautionary note for foreign executives regarding the risks of aggressive regulatory friction,” it said.

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The report said such cases could shape perceptions of Nigeria as a destination for foreign investment.

The department identified inefficiencies at Nigerian seaports as another major challenge for businesses, particularly those dependent on imports and exports.

“Port inefficiency remains a significant ‘hidden tax’ on investment,” the report said.

It noted that the Lekki Deep Seaport handled $9.6 billion in trade in 2025 and operated at 50 per cent capacity, helping to ease pressure on older facilities.

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Nigerian states’ revenues rise 93%, but education spending drops — World Bank

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The World Bank says Nigeria’s 36 states recorded a 93 per cent increase in revenues between 2023 and 2025 but education received a declining share of the sector’s expenditure.

The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenues have influenced spending priorities across the federation.

The report was made available to the News Agency of Nigeria by the World Bank in Washington D.C.

According to the report, states’ aggregate revenues rose by approximately 93 per cent in real terms, while expenditure increased by 92 per cent during the period.

The report attributed the improvement partly to exchange-rate reforms, petrol subsidy removal, stronger revenue administration and increased allocations from the federation account.

It said states also benefited from refunds, settlement of longstanding federal obligations, intervention funds, and stronger Value Added Tax collections.

However, education’s share of total state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, according to the report.

Health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.

The bank said capital expenditure increased significantly, accounting for 61 per cent of state spending, compared with 46 per cent previously.

Transport infrastructure recorded the largest increase, alongside substantial spending on housing, agriculture and other economic investments.

The report quoted Mathew Verghis, the World Bank Country Director for Nigeria, as saying that increased revenues provided the opportunity to improve infrastructure, education, healthcare, and water services.

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He said greater spending efficiency, accountability and improved service delivery were essential to ensuring that additional public resources benefited Nigerians.

The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue.

It, however, stressed that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and improved living standards.

The report also projected average economic growth of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery.

It urged federal and state authorities to ensure that increased public revenues translated into tangible improvements in Nigerians’ welfare.

NAN

Source: punchng.com

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Nigeria promotes investment without building production capacity – UNILAG don

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A professor of Comparative Political Economy at the University of Lagos, Adelaja Odukoya, has asserted that Nigeria’s economic policies promote investment without sufficiently strengthening domestic production.

Odukoya argued that the contradiction had weakened the country’s productive foundations, with policies encouraging investment and entrepreneurship while failing to create the technological capacity, productive employment and processing industries needed to drive sustainable development.

Odukoya spoke at the maiden edition of the Adeleke University Toyin Falola Annual Lecture, held on Thursday at the Performing Arts Theatre, Adeleke University, Ede.

The lecture had as its theme, “History, Power and Accumulation: Reimagining Africa in the Globally Disorderly Order.”

Odukoya identified several contradictions in the way the Nigerian state manages economic activity.

He said, “The state promotes investment without creating conditions for technological transfer. It encourages entrepreneurship without generating sufficient productive employment.

“It expands primary-product exports while leaving processing capacity undeveloped. It constructs infrastructure without establishing strong linkages with domestic production.”

According to him, the contradictions explain why increased economic activity and accumulation do not necessarily translate into development.

“Accumulation is not synonymous with development,” Odukoya stated.

He argued that genuine development should be measured by the expansion of productive, technological, institutional and human capabilities.

“A country could attract investment, export minerals and agricultural commodities and record economic activity while still failing to build the domestic industries and technological capabilities required for long-term development,” he said.

His argument was echoed by Prof Toyin Falola, who said Africa’s vast natural resources would continue to reinforce dependency unless governments developed the industrial, technological and institutional capacity to transform them into productive power.

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Falola said Africa’s resource problem was not simply one of historical exploitation, but also the continent’s failure to convert its resource endowments into power.

“The issue, however, is not just to repeat the history of exploitation. It is more important to know how Africa turns its great resources into power,” Falola said.

He argued that Africa could not afford to remain a spectator as global economic and geopolitical arrangements continued to change, stressing that resource ownership without the capacity to add value would not guarantee influence.

Falola said the continent required a combination of knowledge, government policy and industrial capacity to change its economic position.

“There must be universities that generate new knowledge; there must be governments that translate this knowledge into policies; there must be industries that add value to the continent’s natural resources,” he said.

He added that Africa needed more than improved infrastructure and stronger economies if it wanted to exercise greater influence in the global system.

“The future of the continent will require more than just better infrastructure, improved economies, and more effective political institutions,” Falola said.

Source: punchng.com

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