In a world racing toward renewable energy, the recent editorial from Punch raised a crucial point: Nigeria must avoid allowing the Dangote Refinery to monopolize the refining industry. However, while competition is typically essential, this stance may overlook the broader realities confronting the refining sector, which appears increasingly obsolete.
Alhaji Aliko Dangote, Africa’s richest man, recently stated he could have purchased Arsenal Football Club for $2 billion, but chose to invest his fortune in a refinery instead. This statement left many incredulous. Why gamble $19 billion on a refinery in a time when fossil fuel sources are becoming increasingly irrelevant?
THE REFINERY DILEMMA
The argument against Dangote’s monopoly seems trivial when considering the impending decline of traditional refineries. The evolution of energy technology is rendering them relics of a bygone era. It’s predicted that children born ten years from now may never know what a refinery is, as the world shifts rapidly from petrol and diesel to alternative energy sources.
A recent article from Google highlighted this transitional phase, noting the search for viable replacements for fossil fuels. Advanced nations are racing to develop sustainable energy solutions that will phase out the need for refineries altogether.
GLOBAL INITIATIVES AGAINST FOSSIL FUELS
- Denmark is pursuing Green Ammonia as a new energy source. With prototypes already developed, they are clearly signaling a shift away from fossil fuels.
- Italy is not far behind, with reports indicating that Ferrari is exploring revolutionary engines that could potentially run on water, making conventional refineries obsolete.
- The United States is also in the race, with firms like Nichola One promoting hydrogen-electric energy solutions, moving away from fossil fuels and paving the way for a future dominated by renewable energy.
CONCLUSION: A FUTURE WITHOUT REFINERIES
The discourse surrounding competition in the Nigerian refining sector must shift to acknowledge the imminent decline of fossil fuel dependence. Rather than focusing on the monopoly of one refinery, stakeholders should recognize the urgent need to adapt to changing energy landscapes.
Investing in refineries may seem ill-fated when alternative energy solutions are gaining traction worldwide. The real question remains: In an age moving away from petrol and diesel, will refineries even have a place in the future?
As the global market evolves, perhaps the wiser investment for Nigeria would be to pivot towards sustainable energy sources rather than cling to an industry on the brink of obsolescence. The focus should be on fostering innovation in renewable energy rather than perpetuating a monopoly that may soon become irrelevant.