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Dangote Advocates for Responsible Deregulation in Nigeria's Petroleum Sector

2024-11-05 21:06:56.363000

In a recent statement, Aliko Dangote, the CEO of Dangote Group, criticized Robert Dickerman, CEO of Pinnacle Oil and Gas Limited, for suggesting that deregulation in Nigeria allows for the importation of off-spec petroleum products. Dangote emphasized that while he supports deregulation and industrialization, it should not compromise Nigeria's national interests or the health and safety of its citizens. He highlighted the importance of safeguarding local industries, referencing U.S. protectionist measures as a model for protecting national interests. [2b83244d]

Dangote rejected Dickerman's request to extend a pipeline for blending high-quality products with off-spec imports, expressing concerns over Pinnacle's leasing of tank farms to a company that lacks retail outlets in Nigeria. He called for unity among Nigerians to defend economic independence and stressed the need for responsible practices in the petroleum sector. Dangote anticipates that the commissioning of state-owned refineries will enhance Nigeria's refining capacity and contribute to economic self-sufficiency. [2b83244d]

In related developments, the Nigerian House of Representatives has invited cement manufacturers, including Dangote Cement and BUA Cement, to discuss the recent surge in cement prices, which have increased by about 50%. This price hike has significantly impacted the cost of building materials and rents across the country. The House aims to investigate the reasons behind the price increase and explore solutions to alleviate the financial burden on citizens. [8280fa58]

The National Chairman of the Cement Producersā€™ Association of Nigeria, David Iweta, has expressed readiness to collaborate with the government to reduce cement prices within 30 days. He attributed the price increases to a mismatch between supply and demand and called for a revisit of previous policies that allowed for the importation of cement. [2d578833]

Cement manufacturers have cited various challenges, including import duties and poor infrastructure, as contributing factors to the rising prices. They have agreed to reduce the price range of cement to between N7,000 and N8,000 per 50kg, depending on location. The Nigerian Institute of Building has urged the government to take action to lower cement prices. [2d578833]

Meanwhile, a new cement factory is set to open in Ethiopia, expected to be the largest in the country, which will compete with Dangote Cement. This factory aims to produce 10,000 tons of clinker per day and is projected to create approximately 20,000 jobs. It is part of a broader effort to address Ethiopia's cement shortage and enhance the construction industry. [b0a8d7bc]

In a significant move towards regional cooperation, Caribbean nations are looking to partner with Dangote Group for cement and fertiliser production. Prime Minister of Grenada, Dickon Mitchell, highlighted the potential benefits of such collaborations for industrial growth in developing countries. The Dangote Group is considering partnerships in various sectors, including petroleum, which could further strengthen economic ties between Nigeria and Caribbean nations. [e3bf26a5]

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