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The President, Dangote Group, Aliko Dangote has directed his investment gaze to Rivers State with an initial $7.7 billion (N1.2 trillion) stake in the state’s emerging energy city.
Rivers Energy City is part of the mega city concept known as the Greater Port Harcourt City, which cuts across eight local councils, including Ogu/Bolo, the host council of the energy city.
Dangote, according to African Business Community, has already made open visits, having inspected the large expanse of land beside the waters at Okpokiri in Ogu/Bolo near Okrika Jetty along with the state governor, Chibuike Rotimi Amaechi. The energy city is on the other side of the multi-billion dollar Onne Oil and Gas Free Zone. A bridge is being constructed already to link the free zone and the energy city.
Dangote’s visit was a highlight of the recent Rivers Investors’Forum, which attracted international leaders and investors, including the immediate past prime minister of Britain, Gordon Brown, and the agric investment magnate in Belgium, Pierre Vendebeeck, the Chief Executive of Siat NV.
A source at the Government House, Port Harcourt confirmed the decision of Dangote to invest in the energy city, saying thist would span the petrochemical industry including methane, ethanol and fertiliser sub-sectors. Thousands of jobs are expected to gush out of the energy city project while subcontractors and suppliers as well as revenue sources for government are expected huge sizes.
Dangote would not be lacking competitors in his striving to venture into the petrochemical industry. There is the proposed $6 billion petrochemical project said to be the largest in Africa being floated by both the NNPC and a Saudi Arabian conglomerate, Xenel. There are also two proposed fertiliser plants by the Federal Government through the NNPC for $4 billion with Indian partners (Nararjuna) each with 1.3 million tons per annum.
Also, Indorama Eleme Petrochemical Company Limited (EPCL), which has successfully pioneered the petrochemical sector, is busy building a $2 billion fertiliser and ethanol plants at its present location as part of an expansion project in the face of rising global demands.
The Rivers State government is said to be keen on cushioning Dangote’s landing in the energy city, and this may include revising of economic policies to attract more investors.
The governor said at the investors’ forum that one of such areas is the public-private partnership (PPP) law already enacted, which he said, provides the regulatory framework for collaboration between the state and the private sector.
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