Olabode Sowunmi, Chairman of the Energy Transition Study Group at the Nigerian Gas Association, has cautioned Nigerians against placing excessive expectations on the Dangote Refinery. He emphasized that the refinery is a business venture, not a non-governmental organization (NGO), and its primary goal is to generate profit.
During an appearance on Arise Television on Wednesday, Sowunmi explained that as a business, the refinery will need to set prices that ensure profitability. “Dangote Refinery is a refinery, and there are inherent costs associated with refining. These costs will ultimately be passed on to consumers,” he stated.
He added, “There is a standard cost for crude oil, so the prices at which they sell will not necessarily align with public expectations. Instead, they will sell at competitive prices that also allow for profitability.”
Sowunmi further noted, “I am not aware of any business that operates like an NGO. NGOs focus on development rather than profit. In contrast, a business that involves capital investment, risk-taking, and entrepreneurial effort is fundamentally driven by the pursuit of profit.”
He questioned why anyone would assume that significant investments in the Dangote Refinery would not yield profits, stating, “While it is theoretically possible, I am uncertain how that would be feasible.”
He also highlighted that the refinery’s primary responsibility lies with its stakeholders, while acknowledging that its operations could bring certain benefits.
