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Dangote’s Downstream Push Promises to “Shake Up” Oil Industry

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The President of the Dangote Group and founder of the Dangote Petroleum Refinery, Aliko Dangote, says there will be an announcement of what he calls a major ‘shakedown’ in the entire country soon.

Dangote said this was not about price reduction, but the complete overhaul of the downstream sector.

He stated this in an interview with newsmen following the recent visit of President Bola Tinubu to the $20bn refinery in Lekki, Lagos.

Asked to mention the ‘big thing’ he had in store for Nigerians with the refinery, Dangote replied, “Now that the President has visited and he has given us additional energy, we will inform you, you will hear from us soon, and that will be one of the major shakedowns in the entire country. It is not the reduction of price, it will be the total overhaul of the downstream.”

Dangote, who refused to let the cat out of the bag, noted that the company would go on a “massive trajectory” with the refinery

“I told the President that he had not seen anything yet, we are going on a massive trajectory, much more than what you have seen here. If you come back in the next five years, the refinery will be on the back burner,” he stated.

The businessman also restated that the refinery would be listed on the stock exchange market, starting with the fertiliser company this year.

He acknowledged the impact of President Tinubu’s economic policies, saying recent reforms had fostered a more conducive environment for industrial growth and long-term investment.

Dangote also expressed appreciation for President Tinubu’s ‘Nigeria First Policy’, which aimed to reduce dependence on foreign goods and services by prioritising local content in investment decisions, business operations, and consumer behaviour.

He remarked that this policy aligned with the Dangote Group’s corporate vision of producing what the nation consumes and fostering self-sufficiency to meet the basic needs of Nigerians.

He also commended the administration’s “significant improvements in national infrastructure through initiatives such as the Nigerian Road Infrastructure Development Fund and the Refurbishment Investment Tax Credit Scheme.

”He noted that under these schemes, eight major roads – including the Lekki-Epe corridor – had been awarded within the same cluster at a cumulative cost of N900bn.

According to Dangote, the petroleum refinery was one of several strategic initiatives by the Dangote Group in support of the Federal Government’s Renewed Hope Agenda, which sought to reposition Nigeria as a regional manufacturing hub.

“Our objective is to produce domestically those goods that have historically been imported, despite our abundant natural resources. It is on record that our investment in cement manufacturing made Nigeria self-sufficient in that sector, ending cement importation and turning the country into a net exporter.

“We achieved the same in fertiliser production, as Nigeria is now self-sufficient and exports the surplus, thereby generating valuable foreign exchange.

We have also commenced exportation of refined petroleum products to several countries, including the United States and Saudi Arabia, among others,” he added.

Dangote noted that the refinery offered extensive benefits to the Nigerian economy and its people, declaring that the days of long fuel queues were over in Nigeria.

“We remain steadfast in our commitment to contributing meaningfully to Nigeria’s economic transformation, supporting your administration’s efforts to build a self-reliant, globally competitive nation.

We have remained Nigeria’s highest tax-paying company. With continued collaboration and shared resolve, we are confident that the journey ahead will usher in even greater opportunities for our people and our country.

“The Dangote refinery complex is, in many ways, your brainchild,” Dangote told the President.

“Mr President, let me just say one thing — the main road leading into our refinery is now to be known as Bola Ahmed Tinubu Road,” Dangote disclosed.

He also revealed that, despite paying N450bn in taxes last year, the group was committed to spending N900bn on road infrastructure across Nigeria.

According to him, the Deep Sea Port Access Road is “one of eight major road projects totalling 500 kilometres, including two in Borno State that will eventually link Nigeria to both Chad and Cameroon.”

Speaking, Tinubu commended Dangote for his belief in Nigeria and for making “bold investments that have become a cornerstone in the country’s economic transformation.”

Tinubu described the refinery as “a remarkable achievement,” calling it “a phenomenal project of our time” and “a major point of reference for Nigeria’s industrial and economic growth.”

“Having inspected the Dangote Refinery, which is a great point of reference, a great phenomenon of our time, and a massive investment, I want to thank Aliko Dangote.

“I am also pleased that the Deep Sea Port project, which I initiated during my tenure as Governor of Lagos State, has become a resounding success. It has significantly reduced logistics costs by eliminating the need for trans-shipment,” Tinubu said.

He described Dangote as one of the ‘four wise men’ in Nigeria’s economic landscape, citing his investments and steadfast commitment to the country.

“I landed here with four wise men. I will say, wise men. Jim Ovia of reputable Zenith Bank, who has been acknowledged worldwide; Femi Otedola, my baby brother; Samad Rabiu of BUA; and I believe the wisest of them all, Alhaji Aliko Dangote, who is so daring in thinking, doing, and believing in his country,” he said.

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FOBTOB seeks fresh dialogue over ban on alcohol in sachets and PET bottles

Therefore, while NAFDAC states that factories will not be shut down, the policy will result in economic shutdown, particularly for indigenous manufacturers and informal-sector participants.

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Food, Beverages and Tobacco Senior Staff Association (FOBTOB) said on Thursday that the NAFDAC’s blanket ban on satchets alcohol is economically destructive.

FOBTOB, there call out for a fresh dialogue comprising the stakeholders in the industry, the National Assembly, the Federal Ministry of Health, NAFDAC and Civil society organizations to engage in open, transparent, and evidence-based dialogue aimed at crafting policies that protect public health without destroying livelihoods or creating regulatory contradictions.

Reacting to a press release issued by the Director-General of the National Agency for Food and Drug Administration and Control (NAFDAC) today regarding the enforcement of a ban on alcoholic beverages packaged in sachets and small containers below 200ml, FOBTOB President, Jimoh Oyibo, disclosed that while the association acknowledge and fully supports the shared objective of protecting children, adolescents, and vulnerable populations from the harmful use of alcohol

“We must express deep concern that the approach adopted by NAFDAC is disproportionate, economically disruptive, and inconsistent with broader regulatory and public health realities in Nigeria,” he said.

PUBLIC HEALTH IS IMPORTANT — BUT POLICY MUST BE BALANCED AND EVIDENCE-BASED

No reasonable stakeholder disputes that excessive alcohol consumption is harmful.

However, public health challenges require holistic, data-driven, and enforceable solutions, not blanket prohibitions that fail to address root causes.

Alcohol abuse among minors is primarily a challenge of effective enforcement, parental responsibility, public education, and social regulation, rather than one of packaging format.

The size of an alcohol container does not in itself, confer safety, nor does increasing pack sizes prevent access by minors.

The global public health evidence consistently demonstrates that behavioural regulation, age-restriction enforcement, education-driven interventions, and appropriate sanctions are more effective in addressing underage alcohol consumption than blanket product bans.

NAFDAC’S CLAIM ON UNINTERRUPTED COMPANY OPERATIONS – CONTRADICTED BY EVIDENCE

Notwithstanding representations made by affected stakeholders, access to these depots has not been restored by NAFDAC, and this is affecting normal business operations negatively.

As a labour union, the livelihoods of our members will be adversely affected by the closure of manufacturers’ depots.

We have compiled records of these enforcement actions for reference and ongoing engagement, which are presented alongside this article.

ECONOMIC AND SOCIAL CONSEQUENCES CANNOT BE IGNORED

For many indigenous distillers, blenders, and distributors, sachet and sub-200ml packaging does not constitute a marginal segment of their operations but rather is the foundation of the core business model.

These packaging formats were intentionally developed to serve low-income consumers, informal retail channels, and rural markets where considerations such as affordability, portability, and unit pricing determine demand.

Also, the claim that the policy only affects “two packages” does not fully convey the magnitude of the impact.

In operational terms:

Production lines are configured specifically for sachet and small-format bottling.

Distribution networks are optimized for high-volume, low-unit sales

Retail reach is largely dependent on maintaining affordability at the lowest price points.

For many small and medium-scale operators, this transition will not be financially attainable.

Therefore, while NAFDAC states that factories will not be shut down, the policy will result in economic shutdown, particularly for indigenous manufacturers and informal-sector participants.

The ban on sachets and small containers below 200ml also risks tilting the market in favour of larger, better-capitalized multinational players who can absorb retooling costs and pivot to premium pack sizes.

Smaller local producers, who rely overwhelmingly on sachet sales, are disproportionately harmed, raising concerns about market concentration and unfair competitive outcomes.

Public health and economic survival are not mutually exclusive.

Nigeria deserves policies that are balanced, humane, enforceable, and fair.

The solution lies in moderation, education, and enforcement, not in policies that punish many while failing to address the real drivers of abuse.

SIGNED BYJIMOH OYIBONATIONAL PRESIDENT FOOD, BEVERAGE AND TOBACCO SENIOR STAFF ASSOCIATION (FOBTOB

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We ban alcohols in retail satchets for national interest – Prof Adeyeye

Placing a label to read not for children on the sachets and the small containers will not work. It cannot be enforced because of the peculiarity of the society.

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The National Agency for Food and Drug Administration and Control (NAFDAC) declared on Thursday that it only ban alcohol in sachet and small containers less than 200ml, and didn’t close down any company in the sector.

“The aim of the ban is to protect vulnerable population such as children and the youth,” said Prof Mojisola Christianah Adeyeye, Director-General, NAFDAC, asserting:”This ban is not punitive; it is protective.”

In a statement , the NAFDAC DG, emphasised that the ban was in line with the recent directive of the Senate of the Federal Republic of Nigeria, and backed by the Federal Ministry of Health and Social Welfare, underscores the agency’s statutory mandate to safeguard public health and protect vulnerable populations particularly children, adolescents, and young adults from the harmful use of alcohol.

The proliferation of high-alcohol-content beverages in sachets and small containers less than 200 ml has made such products easily accessible, affordable, and concealable, leading to widespread misuse and resultant addiction among minors and some commercial drivers.

This public health menace has been linked to increased incidences of domestic violence, road accidents, school dropouts, and social vices across communities.

Placing a label to read not for children on the sachets and the small containers will not work. It cannot be enforced because of the peculiarity of the society.

Many parents dont know their children take alcohol in sachet because the pack size can be easily concealed and the sachet is cheap. History of six years of moratorium given to manufacturers to reconfigure their product lines:

In December 2018, NAFDAC, the Federal Ministry of Health, and the Federal Competition and Consumer Protection Commission (FCCPC) signed a five-year Memorandum of Understanding (MoU) with the Association of Food, Beverage and Tobacco Employers (AFBTE) and the Distillers and Blenders Association of Nigeria (DIBAN) to phase out sachet and small-volume alcohol packaging by January 31, 2024.

The moratorium was later extended to December 2025 to allow industry operators to exhaust old stock and reconfigure production lines.

NAFDAC emphasizes that the current Senate resolution aligns with the spirit and letter of that agreement and with Nigeria’s commitment to the World Health Assembly Global Strategy Resolution to Reduce the Harmful Use of Alcohol (WHA63.13, 2010), to which Nigeria is a signatory since 2010.

The ban on sachet packaging and PET botttle less than 200 ml is to make it difficult for children to get to alcohol and its consumption.

NAFDAC approves alcohol in bigger pack sizes. The small size of the sachet makes it easier for underage to conceal from parents and teachers.

Report from schools show that children conceal the sachets. A teacher recently reported that a student said he couldnt take exam without taking sachet alcohol.

It is aimed at safeguarding the health and future of our children and youth by not allowing alcohol in small pack sizes.

The decision is rooted in scientific evidence and public health considerations. We cannot continue to sacrifice the wellbeing of Nigerians for economic gain.

The health of a nation is its true wealth.NAFDAC reiterates that only two packages of alcoholic beverages are affected by this regulation – spirit drinks packaged in sachets and small-volume PET/glass bottles below 200ml.

The Agency calls on all stakeholders, including manufacturers, distributors, and retailers, to comply fully with the phase-out deadline, as no further extension will be entertained beyond December 2025.

The Agency will continue to work collaboratively with the Federal Ministry of Health and Social Welfare, the Federal Competition and Consumer Protection Commission (FCCPC), and the National Orientation Agency (NOA) to implement nationwide sensitization campaigns on the health and social dangers associated with alcohol misuse.

NAFDAC remains resolute in its mission to ensure that only safe, wholesome, and properly regulated products are available to Nigerians.

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Chinese investors establish $20m Lithium plant in Kwara with pharmaceutical plant underway

According to Sun, the company currently employs more than 300 workers, most of whom are indigenes of Kwara State.

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Image: Lithium mineral

A Chinese firm, ER KANG Company Limited, has established a $20 million lithium processing factory in Kwara State.

ER KANG is also establishing a pharmaceutical manufacturing company in Kwara, valued at over $15 million, bringing the total Chinese investment in the state to approximately $35 million.

Team lead of the company, Sun Qing Rong, disclosed this in Ilorin during a meeting with Governor AbdulRahman AbdulRazaq on Wednesday.

He said the lithium plant is already operational and the investment is intended to prevent the export of raw minerals without processing.

Sun explained that the facility converts lithium into ready-to-use industrial materials, ensuring the mineral is processed locally rather than exported in its raw form.

He noted that the initiative aligns with government policies promoting value addition in the state.

According to Sun, the company currently employs more than 300 workers, most of whom are indigenes of Kwara State.

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