The promise of Dangote’s $12bn refinery

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…Work accelerates to meet completion target
…Power Generation: 12,000MW
…Direct/Indirect Employment: 149,000
…Savings for Nigeria: $7.5billion
…To Generate Additional  $5.5b

12,000MW of power generation can be added to the grid with the additional gas from our system…. We will be creating about 4,000 direct and 145,000 indirect jobs…save over $7.5billion for Nigeria annually…and generate an additional $5.5billion – Aliko Dangote

WHEN the bell that ushered the Minister of State for Petroleum Resources, Dr. Ibe Emmanuel Kachikwu, into his present office started to toll, the heart of many Nigerians leapt for joy that the nation’s four refineries would be fixed to refine commercial crude oil for domestic consumption. Kachikwu, who was also the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, promised to carry out maintenance of the country’s refineries within a few months.

Despite efforts, the capacity of the refineries has not been increased to meet local demand. Consequently, Nigeria continues to import a bulk of its petroleum products from the global market at the expense of its scarce foreign exchange.

The promise of Dangote’s $12bn refinery - Brand Spur
Alhaji Aliko Dangote
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But hope is not lost as the Dangote Group is set to complete its $12 billion refinery in 2019. The Dangote 650,000 barrels per day plant is perceived as a timely intervention to tackle the nation’s numerous challenges in the midstream sector of the industry.

Expectedly, the government has adopted the refinery as a strategy project aimed at enabling it to end its many years of massive importation. The reason is not far-fetched. The Federal Government has indicated that it relies heavily on the Dangote refinery to fulfil its promise to Nigerians. To this end, Kachikwu, who visited the Dangote Oil Refinery site at Lekki Free Trade Zone, in Lagos, said the government is ready to play its part as a responsible stakeholder to assist in making sure the project is completed before the scheduled date.

The minister, who said he was overwhelmed by the dimension of the project, explained that the present government had always believed that the private sector holds the ace in industrialisation efforts of the government, noted that, that belief has been reinforced by the Dangote refinery.

According to the nation’s new petroleum policy, Nigeria would move from oil as a source of income to fuel for economic growth. It stated that the petroleum policy intends to move the Nigerian economy away from exporting crude oil to IOCs for immediate cash benefits.

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“Crude oil will not be exported, but a significant and growing proportion of government equity crude oil will be sent to local refineries (whether private or public).

“Under the implementation of the petroleum Policy, oil will be refined within Nigeria and further used to create value for the nation.

“The intention is to achieve a competitive supply of petroleum products; make Nigeria a refining hub; introduce petro-chemical industries to realise the full value from oil refining.”

However, the postulations of many observers are: will the Dangote plant be completed in record time? What support has been given by the government; And, what impact will it make on the nation’s economy?

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Extent of work

A recent visit to the site of the plant in Lagos showed that progress has been made in many areas. For instance, the sand filling of the site has been completed. Work was ongoing in piling, targeted at preparing the ground for foundation laying. The construction of habour that would enhance import and export of various items was ongoing. Officials who expressed the management commitment to the project confirmed that efforts have been put in place to execute other segments of the refinery.

FG support

The government has indicated interest to support the completion of the project in record time because of its importance. Kachikwu who made the commitment, said, “the private investors have capacity to invest in different sectors of the nation’s economy.

“It is good to say that private sector is the answer to Nigerian’s problems with a project as big as this. The challenge I will give you today is that of time, I see your time for completion is 2019 December; but I am sure you will understand my desire if I tell you that the refinery component of this project should come earlier than the set date.The promise of Dangote’s $12bn refinery - Brand Spur

“I have made very firm commitment to Nigerians that I must stop importation of petroleum products by 2019 and I am going to keep to it. It is absolutely important that we do this early and given the feat that we have achieved in terms of speed of construction and I urge you to do all within you to achieve its completion before the due date.

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“I am sure His Excellency President Muhammadu Buhari will be absolutely excited if he were to find himself, not only crystallizing the policy position we have taken so far, but also coming here himself to commission a facility, as big as this before the end of his first term. Whatever configurations your engineers have come up with, I urge that they go back to the drawing board and get me my refined products before your said date.”

Expected impact

The plant would likely make a lot of positive impact, especially because of its size. According to the President of Dangote Group, Dr. Aliko Dangote, the refinery will have the capacity to flood the domestic and international market with refined products. Also, the Petro-chemical Plant will produce 780 KTPA Polypropylene, 500 KTPA of Polyethylene while the Fertiliser project will produce 3.0 million metric tonnes per annum (mmtpa) of Urea.

“In addition, we are also building the largest sub-sea pipeline infrastructure in any country in the world, with a length of 1,100km, to handle 3 billion SCF of gas per day. We also plan to construct a 570 MW power plant in this complex. As a matter of fact, gas from our gas pipeline will augment the natural domestic gas supply and we estimate that an additional 12,000MW of power generation can be added to the grid with the additional gas from our system.

“We will be adding value to our economy as all these projects will be creating about 4,000 direct and 145,000 indirect jobs. We will also save over $7.5billion for Nigeria annually, through import substitution and generate an additional $5.5billion per annum through exports of the refined petroleum products, fertilizer and petro-chemicals. We envisage that these projects, which would cost over $18 billion, would be completed in 2019.

Local content

The refinery would also enhance local content development in Nigeria. Already, the management of the refinery has agreed to select competent Nigerian vendors that will participate in the construction of the plant from the Nigerian Oil and Gas Industry Joint Qualification System (NOGICJQS), the database of available capacities in the oil and gas industry managed by the Nigerian Content Development and Monitoring Board (NCDMB).

The Chief Operating Officer, Dangote Refinery Project, Mr. Giuseppe Surace, committed to this at the technical meeting held between top officials of the company and NCDMB at the refinery project site recently. He affirmed that there were many advantages in patronizing the local market, adding, “Nigerian companies will get the first right of refusal. We will procure anything that is available in Nigeria.”

The COO confirmed there were several Nigerian content opportunities in the company’s refinery and gas gathering projects but interested companies must submit competitive bids and have technical capabilities. He explained that the project is a private investment, hence the strategy is to get the best quality anywhere in the world at the most competitive price.

He advised local vendors to quote reasonable prices when bidding for industry projects, rather than believe that they would win jobs because of the Nigerian Content Act, irrespective of expensive quotations they submit. He noted that Dangote Group engaged the services of some Nigerian companies on its fertilizer project which had reached an advanced stage of development and was committed to do the same on the 650,000 barrels per day refinery project, which will be completed in October 2019.

The Executive Secretary NCDMB, Engr. Simbi Wabote, promised that the board will assist the company in the utilization of the NOGICJQS database, to ensure that it maximizes the utilization of local personnel, goods and services in the construction and operations phase of the project.

Beyond the DANGOTE Refinery, observers believe that the nation needs many modern refineries in order to meet domestic demand and turn the Gulf of Guinea (West Africa) into a major refining hub in the world. But with the efforts of Africa’s richest man, hope rises.

 

SOURCE…

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The promise of Dangote’s $12bn refinery - Brand Spur

Emerging Stronger with Adaptable HR: Alight Solutions’ State of HR Transformation...

SINGAPORE - Media OutReach - 12 May 2021 - After releasing three insightful editions, we are delighted to bring to you the fourth edition of the Alight Solutions' State of HR Transformation Study in partnership with People Matters.


The promise of Dangote’s $12bn refinery - Brand Spur


The study, which was launched during the People Matters TechHR SEA, is themed around Emerging Stronger and sheds light on how some organisations are ahead of the curve in emerging stronger. A key finding was the positive sentiment that organisations in Asia have for the coming 12 months. Amongst them, adaptable organisations have reported that they are 1.5 times more likely to see positive growth in revenues and profits. The HR function has certainly proved its mettle in this case and shown how well it can manage disruption and guide organisations to emerge stronger.

Last year, Alight brought forward the construct of Adaptable HR as a guide to navigating the increasingly uncertain business and talent landscape in the midst of the biggest crisis faced. Exploring the anchors of adaptability in HR functions, Alight has consistently observed that HR Operating Model (interchangeably referred to as HR Service Delivery or Business Model) plays an important role in driving confidence on execution and productivity. When complemented with the right HR technology strategy, the results are amplified further.

Talking about this year's study, Vikrant Khanna (Sr. Director and Advisory Lead at Alight Solutions), exclaimed, "We are delighted to see how Adaptable HR function led organisations are recovering from the impact of the pandemic. While there is still quite a bit of uncertainty in the environment, the construct of Adaptable HR acts as a lighthouse for organisations to emerge stronger."

This year, as we continue to face new challenges and uncertainties posed by the pandemic, Alight found that organisations with Adaptable HR are emerging stronger to:


The promise of Dangote’s $12bn refinery - Brand Spur


Lead in being digital: Adaptable HR report twenty times the NPS on technology satisfaction as compared to market averages. This is due to the digital success enabled by leveraging HR Technology to complement the HR Operating Model. In addition, 50% of Adaptable HR have advanced along their adoption journey of robotics and cognitive technologies to drive efficiencies and improved experience for employees.

Enable shifts in the way we work: Adaptable HR functions are three times more likely to be proactive in driving institutional change, new ways of working, and adoption of work technologies. In fact, Adaptable HR functions report the use of up to 5 forms of work technologies. Factors that enabled quick adoption include investment priorities and the right efforts in helping adoption through investments in manager/ leader enablement.

Reimagine HR: Adaptable HR functions are three times more likely to succeed in delivering closer partnership with the business through their operating model and capabilities. The specific capabilities demanded in Adaptable HR functions are what sets them apart and enables the organisation to be agile by design.

Shape and deliver value: Adaptable HR functions are almost three times more confident in their HR strategy and execution. This foundation and investment priorities enables them to be better equipped to address complexities and more proactive in responding to changes.

The promise of Dangote’s $12bn refinery - Brand Spur


The world of work too has undergone drastic transformation in these times. Adaptable HR functions have proven that HR is truly at the forefront of shaping and delivering value to stakeholders, enabling us to adopt new ways of working, and enable digital success. Throughout this report, observations were shared in terms of how Adaptable HR organisations have paved ways for new co-creations and solutions for people and organisations to emerge stronger.

It is an accumulation of all individual behaviour changes and the larger organisation change which leads to business success. It is no surprise that organisations with Adaptable HR functions are 1.5 times more likely to have favourable growth in revenues and profit before tax in the coming 12 months.

Shaswat Kumar (Vice President and Asia Leader, Alight Solutions) shares, "This year's findings demonstrate that Adaptable HR function led organisations are likely to succeed in their change agenda. This will enable organisations, not only to compete better, but also to deliver the right value to its constituents and shareholders."

Certainly, the future belongs to organisations that are able to continue their journey of Adaptable HR, lead transformation and emerge stronger!

The State of HR Transformation 2021, is the fourth edition of the Alight Solutions' flagship study on this subject. The study data was captured between Jan 2021 and Apr 2021 through an online survey. The insights combine data captured via a survey that saw participation from over 1,700 respondents (which were filtered down to 1,022 based on completeness and accuracy of responses), and observations of Alight Solutions in the space of HR Transformation.


About Alight Solutions

With an unwavering belief that a company's success starts with its people, Alight Solutions is a leading cloud-based provider of integrated digital human capital and business solutions. Leveraging proprietary AI and data analytics, Alight optimises business process as a service (BPaaS) to deliver superior outcomes for employees and employers across a comprehensive portfolio of services. Alight allows employees to enrich their health, wealth and work while enabling global organisations to achieve a high-performance culture. Alight's 15,000 dedicated colleagues serve more than 30 million employees and family members.


We deliver next level transformation at alight.com


Click here to download the exclusive report now. Let's emerge stronger together!

The promise of Dangote’s $12bn refinery - Brand Spur
- Advertisement -
spot_imgspot_img

Latest News

Emerging Stronger with Adaptable HR: Alight Solutions’ State of HR Transformation Study 2021

SINGAPORE - Media OutReach - 12 May 2021 - After releasing three insightful editions, we are delighted to bring to you the fourth edition of the Alight Solutions' State of HR Transformation Study in partnership with People Matters.


The promise of Dangote’s $12bn refinery - Brand Spur


The study, which was launched during the People Matters TechHR SEA, is themed around Emerging Stronger and sheds light on how some organisations are ahead of the curve in emerging stronger. A key finding was the positive sentiment that organisations in Asia have for the coming 12 months. Amongst them, adaptable organisations have reported that they are 1.5 times more likely to see positive growth in revenues and profits. The HR function has certainly proved its mettle in this case and shown how well it can manage disruption and guide organisations to emerge stronger.

Last year, Alight brought forward the construct of Adaptable HR as a guide to navigating the increasingly uncertain business and talent landscape in the midst of the biggest crisis faced. Exploring the anchors of adaptability in HR functions, Alight has consistently observed that HR Operating Model (interchangeably referred to as HR Service Delivery or Business Model) plays an important role in driving confidence on execution and productivity. When complemented with the right HR technology strategy, the results are amplified further.

Talking about this year's study, Vikrant Khanna (Sr. Director and Advisory Lead at Alight Solutions), exclaimed, "We are delighted to see how Adaptable HR function led organisations are recovering from the impact of the pandemic. While there is still quite a bit of uncertainty in the environment, the construct of Adaptable HR acts as a lighthouse for organisations to emerge stronger."

This year, as we continue to face new challenges and uncertainties posed by the pandemic, Alight found that organisations with Adaptable HR are emerging stronger to:


The promise of Dangote’s $12bn refinery - Brand Spur


Lead in being digital: Adaptable HR report twenty times the NPS on technology satisfaction as compared to market averages. This is due to the digital success enabled by leveraging HR Technology to complement the HR Operating Model. In addition, 50% of Adaptable HR have advanced along their adoption journey of robotics and cognitive technologies to drive efficiencies and improved experience for employees.

Enable shifts in the way we work: Adaptable HR functions are three times more likely to be proactive in driving institutional change, new ways of working, and adoption of work technologies. In fact, Adaptable HR functions report the use of up to 5 forms of work technologies. Factors that enabled quick adoption include investment priorities and the right efforts in helping adoption through investments in manager/ leader enablement.

Reimagine HR: Adaptable HR functions are three times more likely to succeed in delivering closer partnership with the business through their operating model and capabilities. The specific capabilities demanded in Adaptable HR functions are what sets them apart and enables the organisation to be agile by design.

Shape and deliver value: Adaptable HR functions are almost three times more confident in their HR strategy and execution. This foundation and investment priorities enables them to be better equipped to address complexities and more proactive in responding to changes.

The promise of Dangote’s $12bn refinery - Brand Spur


The world of work too has undergone drastic transformation in these times. Adaptable HR functions have proven that HR is truly at the forefront of shaping and delivering value to stakeholders, enabling us to adopt new ways of working, and enable digital success. Throughout this report, observations were shared in terms of how Adaptable HR organisations have paved ways for new co-creations and solutions for people and organisations to emerge stronger.

It is an accumulation of all individual behaviour changes and the larger organisation change which leads to business success. It is no surprise that organisations with Adaptable HR functions are 1.5 times more likely to have favourable growth in revenues and profit before tax in the coming 12 months.

Shaswat Kumar (Vice President and Asia Leader, Alight Solutions) shares, "This year's findings demonstrate that Adaptable HR function led organisations are likely to succeed in their change agenda. This will enable organisations, not only to compete better, but also to deliver the right value to its constituents and shareholders."

Certainly, the future belongs to organisations that are able to continue their journey of Adaptable HR, lead transformation and emerge stronger!

The State of HR Transformation 2021, is the fourth edition of the Alight Solutions' flagship study on this subject. The study data was captured between Jan 2021 and Apr 2021 through an online survey. The insights combine data captured via a survey that saw participation from over 1,700 respondents (which were filtered down to 1,022 based on completeness and accuracy of responses), and observations of Alight Solutions in the space of HR Transformation.


About Alight Solutions

With an unwavering belief that a company's success starts with its people, Alight Solutions is a leading cloud-based provider of integrated digital human capital and business solutions. Leveraging proprietary AI and data analytics, Alight optimises business process as a service (BPaaS) to deliver superior outcomes for employees and employers across a comprehensive portfolio of services. Alight allows employees to enrich their health, wealth and work while enabling global organisations to achieve a high-performance culture. Alight's 15,000 dedicated colleagues serve more than 30 million employees and family members.


We deliver next level transformation at alight.com


Click here to download the exclusive report now. Let's emerge stronger together!

The promise of Dangote’s $12bn refinery - Brand Spur
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