Dangote Refinery not NGO but business venture – Sowunmi tells Nigerians
2 years ago 2 min read
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The Chairman of the Energy Transition Study Group at the Nigerian Gas Association, Olabode Sowunmi, has told expectant Nigerians not to invest so much hopes on the Dangote Refinery.
He maintained that people should understand that Dangote Refinery is not a Non-governmental organisation, NGO, but a business venture established with the first aim of making profits.
Speaking on Arise Television on Wednesday, Sowunmi that since the refinery is a business venture, it will no doubt keep in mind its need to sell at a price that is profitable for its business.
“Dangote Refinery is a refinery, so there is an average cost of refining. That cost is going to be passed on to the final consumer,” he said.
“There is an average cost to the price of crude oil. So, at the end of the day, they are going to sell not at the prices that people want, they are going to sell at a price that is competitive and to some extent, profitable for them.
“I do not know any business venture that runs like an NGO. The aim of NGOs is not to make profit, it is to develop.
“However, when it comes to a venture, where somebody has put in capital and somebody has taken risk and somebody has put in their own effort and spirit of entrepreneurship, the primary purpose is profit.
“So, I do not know why people will expect that all that investment will take place in the Dangote Refinery and there will be no profit.
“It is possible, but I don’t know how that will work.”
He further emphasised that Dangote Refinery’s primary duty is to its stakeholders.
He however stated that the functioning of the refinery will have advantages.
