Finance & Business

Will Dangote petrol bring relief to Nigerians?

Confusing signals are emanating from both the government and the Dangote Refinery concerning pump prices.

Published

9 months ago

September 10, 2024

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Punch Editorial Board

THE commencement of petrol production at the Dangote Refining and Petrochemicals complex in Lagos is a defining moment for Nigeria. However, the excitement that came with the announcement has been dampened. It coincided with a 66 per cent spike in petrol prices shortly after the highly indebted national oil company, the NNPC Ltd., admitted that it could no longer accommodate subsidies on imported petrol.

On September 3, the NNPC adjusted petrol pump prices by 66 per cent from N568 and N617 per litre to N855 and N897/l across regions. Independent marketers adjusted to between N900 and N1,200/l.

This new price template suggests an agreement between the Dangote Refinery and the Federal Government, which has agreed to sell crude oil in naira to the refinery, factoring in the elimination of other costs associated with petrol imports such as freight, insurance, port charges and taxes that had combined to peg the landing cost at N1,117 as of June according to the Major Energy Marketers Association of Nigeria.

This is a bitter pill that Nigerians have been made to swallow. It has triggered a backlash, and explanations remain fuzzy. The timing of the refinery’s first petrol flows after weeks of petrol scarcity that had pushed prices up to N1,500/l in the black market.

The subsequent official price hike, and NNPC’s decision to come clean on its estimated $6 billion debt to fuel suppliers after initial denials, give room for suspicions that the entire scenario was contrived to set the stage to end fuel subsidies.

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The refiner has presented a perfect opportunity for the Bola Tinubu administration to correct the blunder of its “subsidy is gone” declaration, followed by the naira devaluation, which ironically resulted in higher subsidy payments.

Confusing signals are emanating from both the government and the Dangote Refinery concerning pump prices. The NNPC said prices would be determined by forex rates, and Dangote will be allowed to set petrol prices starting in October.

The refinery is committed to supplying 25 million litres per day this September, which will be ramped up to 30 million litres a day in October. This is almost half of local consumption, estimated at 66 million litres per day.

Nigerians are pitted between fuel availability and higher costs. It is not the relief that was expected with Dangote’s entry into the petrol market.

While the government is facing a severe backlash from stakeholders, including labour unions and members of the organised private sector over fears of further petrol price-induced inflation, and worsening of the cost-of-living crisis, the longer-term prospects of reliable fuel supplies, energy security and price stability could be a worthwhile trade-off.

However, the government must be transparent in its actions to gain public trust. The downstream petroleum sector is a cesspool of intrigues, avarice and dubious activities promoted by vested interests. Nigerians are also not convinced that any savings from the stoppage or reduction of fuel imports will be properly accounted for.

There is evidence to support the possibility of petrol prices trending downwards eventually. The Dangote Refinery had crashed diesel price to N1,000/l in April, down from N1,200 initially offered to fuel marketers weeks after the refinery started diesel production in January. This is much lower than the average of N1,700/l a month earlier. It also reduced the price of aviation turbine kerosene from N980 per litre to N940 in April.

The petrol market should be subject to competition to ensure fair prices. While NNPC executives have claimed that the deregulation of the petroleum sector, as stipulated by the Petroleum Industry Act 2021, has taken effect and petrol prices will be determined by unrestricted free market forces, an exclusive deal between Dangote and the NNPC does not suggest a competitive environment. The illiquid forex market will give the NNPC as a retailer a huge advantage over independent marketers who have been clamouring for access to Dangote petrol. This should not be allowed to be the norm.

Whatever pains the still unfolding scenario represents, the big picture of Dangote refinery kick-starting a new era of industrialisation for Nigeria cannot be overlooked

Situated on a site seven times the size of Victoria Island, the $20 billion complex is the largest single-train refinery in the world with a nameplate capacity of 650,000 bpd.

The superstructure is a testament to the vision and tenacity of Aliko Dangote, who has pulled off what the Federal Government has failed to do.

The refinery will end 28 years of fuel import dependency due to the grounding of the NNPC’s four refineries with a combined capacity of 445,000 bpd despite over $20 billion spent on maintenance. The country has a reprehensible distinction of being an oil producer that relies on fuel imports.

More significantly, its impact on the economy will be profound as Nigeria will save a significant portion of the $10 billion spent yearly on fuel imports. It will guarantee supplies that have been subject to frequent disruptions associated with importation by the NNPC.

On the macroeconomic level, the refinery’s potential contribution to Nigeria’s economic fortunes is significant. It provides huge opportunities for GDP growth, employment generation, technological advancements, and the creation of spin-off industries. The refinery has a Nelson complexity index of 10.5, meaning it is more complex than most refineries in the United States (average 9.5) or Europe (average 6.5).

Recent economic modelling suggests that the refinery could contribute approximately 2.5 per cent to Nigeria’s GDP. This estimation considers not only the direct revenues from the refinery’s operations but also the multiplier effects across the supply chain, including service providers, logistics, and other ancillary services that will see growth due to the refinery’s demands.

The refinery employs about 3,000 young Nigerian engineers who run its daily operations. It is estimated that the refinery will sustain 30,000 jobs from activities related to its operations and 100,000 more in spin-off industries and activities.

The refinery has opened a new vista of opportunities for the country’s industrial and manufacturing sectors with the production of a vast range of petrochemicals and raw materials including polypropylene, polyethene, base oil, and linear alkylbenzenes that will help boost many sectors, including agricultural, plastics, and packaging. Its fertiliser arm is already supplying urea to domestic and African markets.

It has effectively provided a high level of energy security for West Africa with the potential to deepen regional integration through common fuel markets.

This has the potential to stabilise the naira, rein in inflation and contain Nigeria’s need for continued borrowing.

Crucially, it provides proof of concept that Nigeria can be a destination for new large-scale, world-class, high-cost industrial projects, which could catalyse further foreign investment flows and open the space for more technology-driven industries.

Indeed, there are suggestions that by aligning economic policies to support the refinery and other similarly large projects coming up, the government could transform an industry-specific investment into a fulcrum for further economic development. It gives impetus for revamping Nigeria’s logistics infrastructure – rail, roads, and pipelines – to ease the movement of petroleum products.

The Tinubu administration should realise that Nigeria’s industrial future lies with private sector investors. Moribund projects such as Ajaokuta Steel and the Aluminium Smelter Company of Nigeria should be privatised with dispatch.

So, the NNPC must be privatised and run strictly as a profit-driven entity. This will provide an immediate cash injection into the economy, free the company from political encumbrances, guarantee transparency and efficiency in its operations, and significantly higher financial returns to the public treasury.

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Christian Wealth Principles

6 Biblical Money Foundations That Unlock Financial Freedom – What the Bible Really Says About Wealth

You will learn about Godly wealth principles and Christian money tips. It covers managing money, financial freedom and you will also explore Biblical investing, and blessings.

Published

2 days ago

June 16, 2025

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Introduction

Is money evil? Should Christians be rich? What does the Bible really say about wealth?
Many believers struggle with finances due to mixed messages. But Scripture provides clear wisdom about money management. In this post, discover 6 Biblical money foundations that help you enjoy wealth without guilt and handle finances God’s way. This will help you in Faith and finances. You will learn about Godly wealth principles and Christian money tips. It covers managing money God’s way as well as spiritual and financial freedom. You will also explore Biblical investing, tithing, and blessings.

Watch the full video breakdown on our Faith & Fortune Finance YouTube channel [embedded below].

___________________

1. God Owns Everything—We Are Just Stewards

Psalm 24:1 – “The earth is the Lord’s, and everything in it.”

God owns it all—your money, house, gifts, even your ideas.
You’re not the owner. You’re the steward.

Action Steps:

Shift from ownership to stewardship
Ask God how to manage what He’s entrusted to you
Use wealth to glorify God, not just yourself

Quote:

“When we see money as God’s, we handle it differently—with purpose, peace, and power.”

2. Diligence and Hard Work Bring Prosperity

Proverbs 10:4 – “Lazy hands make for poverty, but diligent hands bring wealth.”

Financial laziness is mental, physical, and spiritual.
Avoid laziness in planning, learning, and building wealth.

Example: Oprah Winfrey built a global empire through diligence—not luck.
Biblical Application: Psalms 1:3 – “Whatever he does prospers.”

Faith + Action = Prosperity

Action Steps:

Show up early. Learn. Network. Execute.
Serve God in your work, not just in church.
Work is worship when done with purpose.

3. Avoid Debt and Live Within Your Means

Proverbs 22:7 – “The borrower is slave to the lender.”

Debt leads to anxiety, stress, and missed opportunities.
God’s people are called to financial freedom.

Real-World Example:
Chris Hogan teaches the power of debt-free living in Everyday Millionaires. These everyday millionaires became wealthy by saving. They also budget carefully and avoid debt.

Action Steps:

Budget with a plan, not emotion
Buy only what you can afford
Practice the “banana principle”: Don’t chase what’s ripe today but rotten tomorrow.

4. Tithing and Generosity Invite God’s Blessing

Malachi 3:10 – “Bring the whole tithe… see if I will not throw open the floodgates of heaven.”

Generosity invites God into your finances.

Real-World Example:
Bill Gates’ philanthropy helped eradicate diseases and feed nations. He gave to bless, and the blessing multiplied.

Action Steps:

Tithe as an act of faith
Give beyond money—give time, wisdom, love
Be a blessing to others

5. Invest and Multiply What God Gives You

Matthew 25:14–30 – Parable of the Talents

God expects you to grow what He gives you. Don’t bury your potential.

Real-World Examples:

Warren Buffet invests long-term with wisdom and restraint
Ray Dalio succeeds through planning, research, and principles

Action Steps:

Start small—just start
Learn to invest: stocks, skills, businesses
Multiply resources for Kingdom impact

6. Practice Contentment—Avoid the Love of Money

1 Timothy 6:10 – “The love of money is the root of all evil.”

Wealth is a tool, not a goal.

Real-World Example:
Dave Ramsey lives and teaches contentment after rebounding from financial failure. He preaches peace over pressure.

Action Steps:

Be content with what you have
Avoid comparison and consumerism
Focus on eternal rewards over earthly riches

🎯 How to Apply These Biblical Money Foundations Today

✅ Recognize that God owns everything
✅ Be diligent and hardworking
✅ Avoid debt and impulse purchases
✅ Tithe and give generously
✅ Invest wisely
✅ Practice contentment daily

Watch Full Teaching on YouTube

👇Watch this full video breakdown with real-life case studies and extra teaching only on Faith & Fortune Finance:

Conclusion

God’s financial principles aren’t just spiritual—they’re practical. Apply them and you’ll see peace, purpose, and prosperity flow into every area of your life.

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Finance & Business

As Nigerians Battle Pains Of Soaring Petrol Price

This is more than just about fuel; it’s about the larger picture of governance failure. The fact that a country as oil-rich as Nigeria can’t provide affordable fuel for its people is a tragedy.

Published

8 months ago

October 16, 2024

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BY IFEANYI MOGBOLU

The Daily Times-The latest fuel price hike in Nigeria is beyond frustrating. Every time we think it can’t get worse, it does, and yet again, ordinary Nigerians bear the brunt of it.

It’s like a never-ending cycle, where the government’s promises of reforms or stabilisation always end up as empty rhetoric. The cost of living is already sky-high, and now, with fuel prices rising again, transport fares, food prices, and basic commodities are bound to follow suit.

It’s enraging because it doesn’t feel like anyone is truly considering the everyday citizen who is struggling just to survive.

This is more than just about fuel; it’s about the larger picture of governance failure. The fact that a country as oil-rich as Nigeria can’t provide affordable fuel for its people is a tragedy. The subsidies are gone, and now we’re left in a situation where the prices of everything keep climbing, while salaries remain stagnant or non-existent for many.

The disparity between the elites and the masses is growing, and it feels like nobody in power truly cares about the suffering of the people.

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The anger isn’t just about fuel; it’s about the entire state of living. Nigerians are exhausted. There’s no sense of security; power supply is erratic, basic infrastructure is crumbling, and inflation is at an all-time high. How do we live like this? Every day is a battle to make ends meet, and the government seems utterly disconnected from the struggles on the ground.

It’s infuriating that while politicians and elites live in luxury, the rest of us are left scrambling for the bare minimum. The state of living is unbearable, and the lack of empathy or real action from those in power only adds salt to the wound.

There’s a deep sense of anger and betrayal that comes with seeing your country’s wealth mismanaged, while the people continue to suffer. It’s hard not to feel like we are constantly being taken for granted, pushed further into hardship without any hope of relief. Something has to give, because this state of affairs is unsustainable.

QUOTE:

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Finance & Business

Nigeria To Receive $5.600,000 From Bill Gates, For Health And Agricultural Reforms, GMOs

Alongside the activities surrounding the 79th United Nations General Assembly in New York, Vice President Kashim Shettima held a meeting with the Bill and Melinda Gates Foundation leading to the announcement of the donation by the Foundation’s head of Global Development.

Published

9 months ago

September 27, 2024

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Bill Gates, GMOs, KASHIM Shettima

Bill and Melinda Gates Foundation is giving Nigeria through Vice President Kashim Shettima, a $5.600,000 funds to speedy up health and agricultural reforms in favour of the GMOs in Nigeria, and flood relief.

Through the Foundation’s head of Global Development Programme, Dr Christopher Elias, Bill Gates pledged $5 million grant approved for Lagos Business School and partners to develop the agricultural economics they called “industrial cassava” and $600,000 for flood relief in Borno State and other health sector initiatives.

Recall that on 4 September, Bill Gates had described the Nigeria’s economy as “stagnated” and proposed agricultural reforms for faster and increased growths in crops, fruits, vegetables amongst others to enhance nutritional values of the Nigerian citizens through the agricultural sector.

In that meeting Chaired by Vice President Kashim Shettima, Bill gates urged Nigeria to adopt “innovative crop varieties with shorter growing periods, higher yields, and better pest resistance” pointing to the GMOs to address the food crisis.

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Moreover, at the 79th UN General Assembly in New York, VP Shettima reaffirmed to the Bill and Melinda Gates Foundation, the commitment of the administration of President Bola Ahmed Tinubu prioritizing health, nutrition, and agricultural development in Nigeria’s national agenda.

In a statement by Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, Shettima said: “we are deeply committed to addressing the pressing developmental challenges facing our nation, particularly the significant malnutrition crisis”.

He emphasised the Federal Government’s dedication and urgently working to secure locations for maize production under the Telemaze programme.

VP Shettima, promising swift action to the Gate’s Foundation on import permits for certified seeds, the VP said, “We recognize the critical importance of food security and industrial agricultural development. The Cassava Accelerator programme, in particular, holds immense potential for our economy.

“We are pursuing a whole-of-government approach to digitisation and data exchange systems, which we believe will revolutionise our public services,” he added while reiterating the government’s focus and commitment to digital transformation.

“With the expertise” of Nigeria’s ministers, “and the continued support of partners like the Gates Foundation,” the nation remains confident in its “ability to drive meaningful change and improve the lives of all Nigerians.”

In his response, President of the Global Development Programme at the Gates Foundation, Dr. Christopher Elias, said the Foundation is burdened with worries of the severe flooding in Borno, and is “committed to supporting Nigeria in times of crisis.”

Speaking of Polio, the Foundation said, “We’re impressed by the national task force’s efforts to eliminate variant polioviruses by year-end,” Dr. Elias noted.

Also, President of Global Growth & Opportunity Division at the Bill & Melinda Gates Foundation, Rodger Voorhies, detailed plans for scaling up drought-tolerant maize production and advancing the Nigeria Cassava Investment Accelerator programme emphasizing that a $5 million grant has been approved for Lagos Business School and partners to develop the agricultural economics of industrial cassava.

In his words, “Industrial cassava presents a multi-billion-dollar opportunity for Nigeria,” Voorhees stressed.

He requested import permits for 5,000 metric tons of certified GMO maize seed to build a foundation seed system in Nigeria.

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