Dangote's $50B Renewable Energy Plan
I have maintained that Nigeria will see a tremendous redesign by 2022 across different sectors. I have noted that ecommerce will begin to blossom then. I have also noted that power will be more available, and broadband costs will crash. The modelling is sound as we looked at many pieces and how Nigeria has advanced since 1999. We have a small report but that is for making me look smart before clients so that we can have amala on the kitchen table at home. So, that one is not public, yet.
I wrote few weeks ago on what Dangote is doing, after listening to his presentation during Elumelu Forum. It was evident that Dangote Group was building industrialized conglomerate that will have all the pieces to attack Nigeria's power sector. He is already selling power in one African country. He has accumulated the capabilities to do business in the power sector. As he noted, he generates a huge percentage of our nation's power capacity for his businesses.
Today, in a press release, informing the world that Aliko Dangote was the only African selected in Bloomberg 50 list of year's most influential people, they dropped:
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Dangote's contribution to the world this year revolves around his dynamic attention to lessen food imports into his own country and Africa's largest nation, Nigeria, by focusing on domestic production of sugar and dairy, with 500 million liters of Nigerian milk to be produced by 2019. Earlier this year he announced a $50B USD plan to invest in renewable energy
Yes, Dangote wants to invest $50 billion in renewable energy. That will eclipse all the funds put by distribution companies, transmission company of Nigeria and some of the generating companies. When you combine that with Dangote Refinery, you will see that Dangote Group could fix all the major energy problems, from fuel to electric power.
Did you notice that government is already saying that generating companies can sell power directly to customers? If that thinking becomes the "law", it means that Dangote Power can produce renewal power and pipe direct to customer homes, at scale. That regulation will allow it to issue meters and once he can have access to that, Discos will become inconsequential. (Pls I am not saying that Dangote is influencing the regulation. I am saying that the minister is talking and if that becomes the law, Dangote Group like any firm in Nigeria could benefit.)
We do think 2022 will be awesome for Nigeria. We will have power and the moments will begin. $50 billion renewal energy in Nigeria will be catalytic.
I thought he said he will be investing the money outside africa to diversify his portfolios and geography?
Incidentally,in the light of this emergent electricity purchase policy of willing saler and buyer plan,I would think that,that infastructure development company you're a director in,with some chinese can be of help in this regime and help sort out power problems here,China is an expert in coal to power,dam etc.
We have abundant coal in enugu and gas that can supply all industries in the east and beyond,even the whole country if you can afford to buy.
I wish your group can look into coal to power in the east for a start,where china can leverage its expertise in this area and availability of investment funds,even if it means a little tinkering with your company's policy on investment to play in this field.
I think that your company has natural advantages to benefit from this new policy in nigeria and invest in power infrastructure,especially coal,where you'll not worry about pipeline destruction and cleanliness (carbon emmission) in nigeria,moreover,China has newer and less environmentally harmful coal-to-power technologies.
Not just dangote,your group is equipped to benefit from this new law in nigeria.
Anyi Okonkwo (DR).
