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Dangote Refinery: A timely win for industrialisation, By Abiodun Alade

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Nigeria, rich in resources and with a burgeoning young population, remains paradoxically stagnant due to its over-reliance on imports. This dependency, rather than being a temporary measure, has entrenched itself as a systemic barrier to long-term prosperity.

With a population exceeding 200 million and a predominantly young demographic, Nigeria has become a prime target for global product dumping. Each year, a flood of new products enters the Nigerian market, to the point where the country imports nearly everything imaginable. This has created a mindset where locally produced goods are often perceived as inferior compared to imported items.

As one writer aptly observes, Nigeria imports toothpicks despite having bamboo, starch even though it is the world’s largest cassava producer, and tomatoes while having its own tomato production base. For nearly thirty years, Nigeria relied on imported refined petroleum products despite being a major crude oil producer with four refineries.

However, this narrative changed a few days ago with the production of gasoline (petrol) from the Dangote Petroleum Refinery and Petrochemicals, owned by Africa’s wealthiest entrepreneur, Aliko Dangote. This landmark facility, recognised as the world’s largest single-train refinery with a capacity of 650,000 barrels per day, also produces diesel, aviation fuel, and other products.

This marks a significant victory for industrialisation in Nigeria and serves as a powerful example of how Africa can break free from the cycle of being a dumping ground for foreign goods. It is striking to note that only Algeria and Libya out of the 54 countries in Africa do not import fuel, highlighting the transformative impact of this development.

By harnessing Africa’s abundant crude oil resources to produce refined products locally, Dangote aims to catalyse a virtuous cycle of industrial development, job creation, and economic prosperity.

In Nigeria, the refinery will significantly reduce fuel imports, save foreign exchange, and contribute to stabilising the naira, lowering inflation, and reducing the cost of living, among others. The refinery would lead to the protection of forex revenue of around $20bn a year at current market prices and savings of $14bn a year through domestic supplies of petroleum products. It would also create a minimum of 100,000 indirect jobs through retail outlets and ease the availability of petroleum products in the country.

Beyond its role in petroleum refining, the Dangote Refinery also represents a significant boost to Nigeria’s industrial and manufacturing sectors. It will produce crucial petrochemicals such as polypropylene, polyethylene, base oil, and linear alkylbenzenes that will grow in many sectors, including the agricultural sector.

Previously, some players in the packaging industry had to shut down due to the difficulty in accessing foreign exchange to import polypropylene. This issue is expected to become a thing of the past, as Dangote proudly declared on Tuesday: “We are committed to ensuring that starting in October, there will be no need to import polypropylene. Our petrochemical plant will be fully capable of meeting all local demands.”

The availability of these raw materials is set to revive related sectors and industries that had nearly vanished due to the prohibitive costs of importation. While importation provides immediate, short-term gains, it rarely supports sustainable growth. In contrast, industrialisation fosters long-term economic development by creating jobs, boosting productivity, driving innovation, and improving infrastructure.

In recent years, the impact of substandard fuel imports has been catastrophic. In 2022, poor-quality fuels damaged vehicles, generators, and machinery, leading to health crises, including cancer cases. The halt of these imports, achieved through interventions from Belgium and the Netherlands, is only a temporary reprieve as new routes for these harmful products were found, thereby continuing to inflict damage on Nigerians.

However, Nigerians can now breathe a sigh of relief, as the Dangote Oil Refinery will deliver refined products meeting the Euro-V standard, the highest quality in fuel. This level of excellence would have been unattainable through importation; under such circumstances, the best available would likely remain subpar.

As Nigeria contemplates her future, the lessons from industrialised nations are instructive. Nations like China, Japan, Taiwan, and South Korea have experienced significant growth through industrialisation. These nations have demonstrated that investing in and protecting domestic industries, rather than reliance on imports, is a pathway to sustained development and global competitiveness.

The transition from a trading company focused on importing bulk commodities to a diversified conglomerate over the last two decades has enabled Dangote Industries Limited to significantly boost the economy and champion Africa’s drive for self-sufficiency. This evolution illustrates a vision that other stakeholders, including the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), should consider.

I was concerned when DAPPMAN, in a letter to President Bola Tinubu, expressed worries about financial losses incurred by its members due to Dangote Refinery’s decision to reduce the price of automotive gas oil (diesel) from N1,700 to N900 upon starting production in January. The association said that players in the downstream petroleum sector have invested over N3 trillion in establishing around 130 private petroleum depots. Such an amount could turn around some manufacturing sectors instead of serving as infrastructure for importation.

I believe that DAPPMAN and other Nigerians should mobilise resources to support the government in developing the manufacturing sectors of the economy. This is the most effective way to accelerate Nigeria’s development, reduce unemployment, and address insecurity.

Nigeria’s path to progress lies in embracing industrialisation. By investing in local industries and fostering a climate conducive to growth, Nigeria can unlock its potential and secure a prosperous future for its citizens. The time has come to shift from a reliance on imports to a focus on nurturing and expanding domestic industries. This transformation is not only feasible but essential for Nigeria’s development.

 

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For EAC states to excel, members should hire expatriate ministers, By Joachim Buwembo

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Next week, the East African Community, especially the original three members Kenya, Tanzania and Uganda, will be marking their revival Silver Jubilee, which is also an opportunity to reflect on 25 years after the passing of regional integration icon Mwalimu Julius Nyerere.

The integrationist and pro-federation Mwalimu would certainly be happy with the revival of the EAC. But how contented humanist Nyerere who committed his then poor country’s resources and lives to the emancipation of fellow Africans would be with the goings on in the region, can only be debated.

Hundreds of Tanzanian men and women at Nyerere’s command gave their lives so Ugandans would be saved from a dictatorship that attached low value to human life and “disappeared” political dissenters, with a few whose bodies were found having been disfigured sometimes with acid. In Kenya, extra-judicial executions of high-profile political dissenters were also being carried albeit with more sophistication than Uganda’s.

Should some people in Tanzania start derailing that lovely country backwards to catch up with the murderous Uganda and Kenya of the 1970s and criminalise the holding of different political views, then we would beg the EAC to find its manhood and insist that members start hiring expatriate ministers to man certain portfolios thus: For Justice and Law, expatriate ministers from the Scandinavian states would be preferable. But of course, beneficiaries of injustice and illegality would argue that ours are independent sovereign states; so to hell with protection of human lives.

For promotion of Trade and Tourism, expatriates from the United Arab Emirates would fit the bill. But of course, beneficiaries of poaching, smuggling and tax evasion would argue that ours are independent sovereign states; so to hell with expansion of trade and tourism.

For Industry, Indian expatriate ministers would do well to drive import substitution while creating millions of jobs in the region. But of course, beneficiaries of raw materials exportation and importation of consumer goods would oppose and argue that ours are independent sovereign states; so, to hell with the unemployed, human health and environmental protection.

For Finance and Economic Planning, Singaporean expatriate ministers would be appropriate, but of course beneficiaries of grand corruption and incompetence would argue passionately that ours are independent states; so let the taxes be stolen so the awful service delivery gets even worse while debilitating debts mount.

For Transport Infrastructure, expatriate ministers from the Netherlands would be suitable because integrated systems of air, rail, road and water were needed by yesterday, so that transport ceases being an obstacle and becomes an enabler of development instead.

But of course, beneficiaries dominant, inefficient transport modes will argue that we are independent, sovereign states; so let primitive transport systems and fragmented airspaces remain and keep the cost of living and doing business up.

For Energy, Japanese expatriate ministers would do the job to speedily guide our economies through the energy transition, and transfer technology like Chinese have done in Uganda to create local capacity to make electric vehicles.

But to drastically reduce reliance on fossil fuels some countries should consider hiring Ethiopian expatriate ministers who will know best how to say enough is enough, switch from internal combustion engines to electric.

US expatriate ministers can also be considered to help the adaptation of our aviation sectors to sustainable biofuel in addition to driving the processing of rare earth minerals into e-mobility batteries.

But profiteers from the poisoned fossil fuels would say we are independent and sovereign; so let fuel import bills remain high and the peoples’ health be damaged.

The all-important Education sector should without doubt be entrusted to expatriate ministers from Finland for wholesome development of our children.

But of course, the beneficiaries of the extortionist private schools and the cripplingly looted public institutions would argue that these are sovereign independent states; so let the children continue getting mentally stunted and unemployable.

And in Health, of course, the expatriate ministers should be from Sweden, to ensure that everyone accesses adequate health services. Expectedly, beneficiaries of public funds to secure treatment abroad and those who benefit from stolen medical supplies would argue that ours are independent sovereign states; so that the wanton deaths of children and mothers continue.

Give the Housing to expatriate Chinese ministers so we close the era of human beings living in pigsties. However, those who benefit from a disorganised, stunted housing sector would argue that we are independent sovereign states so the majority can continue living sub-humanly.

Joachim Buwembo is a Kampala based journalist. buwembo@gmail.com

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Tanzania, we need to talk, By Othman Masoud Othman

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The ACT-Wazalendo party has been closely following and monitoring political events in the United Republic of Tanzania which, if not attended to urgently, might lead our country into an abyss.

In the six years of the presidency of John Pombe Magufuli, the country suffered a lot. There were claims of narrowing of the democratic space, the right to assemble and the right to free speech.

After the death of President Magufuli and Samia Suluhu Hassan assumed power, there was a sign of hope. The public optimistically welcomed the 4Rs (Reconciliation, Rebuild, Reforms, Reunite). Several positive measures were taken, including the formation of a special task force, which involved members from political parties, academic institutions, the private sector, and civil society. The team came up with many measures to be undertaken: Reform of political parties and elections laws, and the enacting of a new constitution. The President went further to investigate the problems around the criminal justice system and how to solve them.

It is one year to the next general election expected in October 2025, but there is a lot of pessimism, as not enough measures have been taken as promised. Even though the Elections Act was reviewed and the Electoral Commission renamed the Independent Electoral Commission, there is a lot to be done, including writing a new constitution and implementing the proposed reforms to the criminal justice system.

recently, there have been cases of abductions and disappearances of some activists and politicians. The situation got tense after a leader of Chadema, Ali Mohamed Kibao, was abducted and later found dead. Chadema accused the government security forces of these events and called for independent investigations. President Samia also condemned the abductions and ordered investigations.

Chadema also called for peaceful protests, demanding accountability and the police banned the demonstrations.

These happenings are a sign of uncertainty towards the general election, starting with the civic elections expected next month.

We urge the Chadema to reconsider demonstrations in the country. Human rights abuses are not just morally wrong, they are short-sighted. Human rights are a sound investment. They build resilient and prosperous communities and strong institutions based on the rule of law.

We, as a party, believe that our country has people full of wisdom and religious leaders who can guide our country back to the right track.

We urge all sides of the political divide to cool down. We believe that all players have reasonable demands and the failure to listen to each other has led us where we are as a country.

We urge the government to quickly initiate dialogue involving political leaders, the police, religious leaders and other stakeholders in order to bring sanity back to our country.

Our party leaders are engaging in talks between the government and other political parties to find solutions. We urge all the citizens of Tanzania to be united on this to build a better future. we believe that this is the time to talk.

Othman Masoud Othman is the First Vice President of Zanzibar and National Chairperson, of ACT-Wazalendo.

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