Dangote Refinery Tour: What Nigerian Engineers Didn’t Discuss, by Baba El-Yakubu
Rarely does a simple industrial dispute between a company and regulatory authority develop into a national pastime. The one between Dangote Refinery and NMDPRA has generated animated debates among experts and the general public. There were concerns from the refinery that some vested interests were sabotaging its plan to produce petroleum products to replace importations. That concern turned out to be more serious when on July 18, Farouk Ahmed, chief executive officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), publicly claimed that Dangote Refinery (DR) and other local refineries were producing inferior products compared to imports. Then, the leadership of the National Assembly paid a fact-finding visit to the refinery. Using the opportunity of the visit, the refinery offered a very public and strong rebuttal against the NMDPRA claims. It demonstrated that its diesel product was of higher quality compared with imported ones sampled from two Filling Stations in Lagos. Nigerians were regaled or confused by terms such as Energy Dispersive X-ray Fluorescence (ED-XRF) and ASTM D4294 method used in the argument. In simple terms, ED-XRF measures the quality. The measurement and quality must comply with standards specified by ASTM – American Society for Testing and Materials. Tested in the presence of independent visitors, a sample from TotalEnergies’s diesel showed 1,829ppm while that from Matrix Retail showed 2,653ppm sulfur concentrations. The one from Dangote Refinery was at 87ppm. The refinery promises to make it lower. Intuitively, this should put to rest the controversy. But, in the counterintuitive real world of Nigeria; it did not end the debate.
Soon, other fact-finding and/or solidarity visits follow. The latest one was by the League of Nigerian Engineers. Last week, representatives from the Nigerian Society of Engineers (NSE), the Council for the Regulation of Engineering in Nigeria (COREN), and the Nigerian Academy of Engineering (NAE) toured the refinery and offered opinions on the project. For the first time, the engineering profession’s crème de la crème gathered in one place for one important national issue. They described their views about the gigantic project as something “emotional”, and “mind-blowing”, and that “Nigerians need to know about it”. They delicately balanced what they said and avoided the murky waters of ED-XRF and D4294.
Still, what the engineers did not say left a resounding echo that cannot be ignored. There are many important issues that Dangote Refinery must address for its sustainable development.
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There is no doubt, the Dangote Refinery, is a landmark project that has the potential to transform the country’s oil and gas sector. As the largest single-train refinery in the world, with a processing capacity of 650,000 barrels per day, it aims to significantly reduce Nigeria’s dependency on imported petroleum products and bolster the nation’s economy. Therefore, when the establishment of the refinery was announced in September 2013; many expected it to be a game-changer. Later, when President Bola Ahmed Tinubu announced the end of fuel subsidies in May 2023; many pundits considered it to be a big boost to the refinery’s prospects. But, the NMDPRA pronouncement was a big blow to its image and eventual success. Therefore, the vigorous pushback is understandable. So far, refinery seems to be winning the PR battle. But there is a long war ahead. What the engineers did not say is that the refinery’s success and long-term viability depend on overcoming several challenges, particularly in the areas of manpower, sustainability, and technology development. Let me briefly explain them.
The first important issue that the engineers did not discuss is that; one of the most significant challenges facing the refinery is the availability and development of skilled manpower. I visited the refinery in February this year. The visit was related to its manpower training conducted by my team at the Chemical Engineering Department, at Ahmadu Bello University. The oil and gas industry requires a highly specialized workforce, including engineers, technicians, and managers with expertise in refinery operations, maintenance, and safety. Nigeria’s education and training institutions have historically struggled to produce graduates with the necessary skills and experience to meet the demands of such a complex industrial project. COREN is currently redesigning curricula and teaching/learning processes to improve the quality of engineering graduates in Nigeria.
Moreover, the refinery faces the challenge of retaining skilled workers, especially in a competitive global market where expertise in oil refining is highly sought after. I know many of my talented former students who left the refinery. Therefore, the potential for brain drains, where skilled professionals are attracted to better opportunities abroad, poses a threat to the refinery’s operations. To address these manpower challenges, the refinery must invest in local capacity building, including partnerships with educational institutions to develop specialized training programs, apprenticeships, and continuous professional development initiatives. By fostering a skilled and stable workforce, the refinery can ensure operational efficiency and reduce dependence on foreign expertise. NSE, COREN, and NAE may jointly develop special training schemes to bridge the manpower gap in the refinery and the oil and gas industry in general.
The second important issue that the engineers did not discuss is sustainability. It is important because of the worldwide consensus to limit carbon footprint and global warming by industrial activities. Therefore, this is a critical challenge for the refinery, particularly given the environmental and social implications of large-scale industrial operations. The refinery’s activities have the potential to contribute to environmental degradation through air and water pollution, waste generation, and greenhouse gas emissions. The environmental impact of these operations could lead to long-term consequences, such as health issues for local communities, loss of biodiversity, and exacerbation of climate change.
To address these sustainability challenges, the refinery must implement robust environmental management practices. This includes adopting cleaner technologies, minimizing waste, and ensuring compliance with national and international environmental regulations. Additionally, the refinery should invest in renewable energy sources, such as solar or wind power, to offset its carbon footprint and contribute to Nigeria’s broader efforts to transition to a low-carbon economy. For example, Nigeria is a signatory to the Paris Agreement on climate change. On November 8, 2022, the new Africa Carbon Markets Initiative (ACMI) was inaugurated at the United Nations Climate Change global conference held in Sharm, Egypt. Nigeria joined other countries in the agreement to collaborate with ACMI to scale the production of carbon credit across the continent. The body responsible for regulating and controlling emissions and development of the carbon credit market in Nigeria is the NCCC – National Council on Climate Change. The refinery must be proactive to ensure that the ghost from NMDPRA is not resurrected under NCCC.
Another important subject that the engineers did not discuss is the technology. The successful operation of the Dangote Refinery hinges on the integration and development of advanced technologies. Refineries are highly complex facilities that require cutting-edge technology for efficient processing, safety, and environmental management. In fact, a relatively better performance of a given refinery depends on its technology and operational efficiency. However, the challenge lies in the adoption and maintenance of these technologies in the Nigerian context. Nigeria has historically faced challenges in technology transfer and adaptation, particularly in industries where advanced technical knowledge is required. The refinery will need to ensure that it can not only acquire the latest technologies but also adapt them to local conditions, which may involve factors such as climate, infrastructure, and availability of skilled personnel.
Furthermore, the rapid pace of technological change in the global oil and gas industry means that the Dangote Refinery must remain agile and proactive in adopting innovations. This includes investing in research and development (R&D), collaborating with international technology partners, and building local expertise in refinery technology. By staying at the forefront of technological advancements, the refinery can enhance its operational efficiency, reduce costs, and maintain its competitiveness in the global market. Ultimately, the refinery must have a subsidiary that focuses on technology development by Nigerian Engineers. For example, in 1977, NNPC awarded the contract for Engineering Procurement and Construction (EPC) of Kaduna Refinery to Chiyoda of Japan. About thirty-five years later, in 2013; Dangote Refinery awarded its EPC to India Engineers Limited (IEL). In the next thirty years, can a Dangote Refinery subsidiary handle maintenance and EPC contracts for Nigerian and international companies? This is a question that NAE – Nigerian Academy of Engineering – must ponder. NAE advertises itself as the Nigerian foremost think tank on engineering matters. We know our current low capacity in refinery technology. We can envision what we want to be in the next thirty years. The challenge is for NAE to design a response to IEL and similar companies – so that Nigeria may be a technology developer rather than a voracious consumer. Let us have a target and start. As German philosopher Johann Goethe beautifully said, “Whatever you want to do, you must do something else first”. The onus is on NAE to make the first move and engage NSE, COREN, and the stakeholders towards technology development. Action produces results. Specific actions, produce specific results.
The League of Nigerian Engineers’ visit to the refinery is a very good gesture in the national interest. It helps the refinery to win the PR battle. As a Greek writer, politician, and philosopher Nikos Kazantzakis beautifully put it about PR, “Since we cannot change reality, let us change the eyes which see reality.” The visit created further awareness among the general public about the issue at hand. The refinery is a project of immense significance for Nigeria, with the potential to revolutionize the country’s oil and gas sector. However, the Engineers did not point out that the refinery’s long-term success depends on overcoming key challenges related to manpower, sustainability, and technology development. By investing in local capacity building, adopting sustainable practices, and staying at the forefront of technological innovation, the refinery can achieve its objectives and contribute to Nigeria’s economic and industrial development. I see the attempt to sabotage the refinery by the vested interest and the NMDPRA controversy as inconsequential sideshows. The major issues are manpower, sustainability, and technology. Addressing these challenges proactively will be crucial for the refinery to fulfill its potential as a catalyst for change in Nigeria’s energy landscape.
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Baba El-Yakubu is the PTDF-Professor of Chemical Engineering at Ahmadu Bello University, email: [email protected]
