End of an Era - Dangote Refinery

 

Let’s face it earlier rather than too late. After more than 50 years of supplying petroleum products such as diesel, gasoline or jet fuel, a colonial, profitable business model will come to an end. In 2009 I wrote the thriller Probo Koala –

published in English under the title Toxic Tanker. I wrote this story because I was working as a loss control marine superintendent in West Africa responsible for the supervision of the delivery and discharge of these products, which I knew to be of a disputable quality.
In the book the protagonist was asked to hide or replace the original loading port documents, such as the measurement and quality testing report, which were manipulated. The only reason this business model, on which an entire logistics chain – supply, storage, and shipping – depended, could last this long, was because of intertwined interests between local buyers and international trading firms.
Low grade quality petroleum products were imported in to African countries because there was money to be made. A total disregard of the societal consequences could be observed.
Aliko Dangote, a Nigerian businessman, understood the petroleum trade model very well. He invested billions of dollars to build a local refinery in Nigeria. He wanted to supply Africa with on-spec, high quality fuels to boost their economies while halting the dependence on foreign, mediocre petroleum products.
But when one ruffles one’s feathers, opposition stands up. Vested interests in African politics interfered by limiting the local Nigerian crude supply, so the refinery had to purchase more expensive crude oil from overseas. NNPC, the National Nigerian Petroleum Corporation, run by politicians with vested interests, understood that business as usual was becoming impossible and together with their international trading partners attempted to slow down Dangote’s production capacity. No one likes to lose money.
But let’s look at this situation from a different perspective: sustainability. We should ask these questions: was the old way of doing business sustainable or harmful? Is the Dangote’s alternative sustainable and non-harmful? This is not about money alone, but about doing the right thing for a change. Investing and dealing with Africa is not about colonialism anymore. Africa woke up and, because of enormous investments from China and Russia, they realise that their vast resources should first serve Africans and not just line the pockets of Modernity (‘neo colonialism’).
I believe a different, mutually beneficial business model is possible. Negative interdependent business models mean gains for a few but at the cost of others. There needs to be a sustainable way out. Unethical trading is obsolete, because it can’t function forever. A new, exciting opportunity arises. Traders can still compete with this refinery if they can supply high quality products for a lower price, but that will be very difficult as freight needs to added to ship the fuels. Let’s support Africa, cooperate with them as true traders, storage and shipping companies who don’t take any longer what they don’t deserve.