Tag: Dangote refinery

  • JUST IN: Dangote Refinery hits IPMAN, PETROAN, reveals price of petrol per litre

    JUST IN: Dangote Refinery hits IPMAN, PETROAN, reveals price of petrol per litre

    Dangote Refinery has disclosed the price of its petrol, revealing that it sells petrol at N960 per litre for ships and maintains a price of N990 per litre for trucks.

    The statement follows claims from the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) that they can import fuel at cheaper rates than Dangote.

    In an earlier interview, the marketers alleged they were buying fuel more affordably from abroad and called on Dangote Refinery to collaborate with stakeholders.

    In response, the refinery argued that only substandard products could be obtained at prices lower than its own.

    In a statement on Sunday night by the Group Chief Branding and Communications Officer, Anthony Chiejina, Dangote Refinery noted that it followed the pricing benchmark by the Nigerian National Petroleum Company Limited (NNPCL), adding that it went lower in pricing for selling into ships.

    It reads: “Both organisations claim that they can import PMS at lower prices than what is being sold by the Dangote Refinery. We benchmark our prices against international prices and we believe our prices are competitive relative to the price of imports.

    “If anyone claims they can land PMS at a price cheaper than what we are selling, then they are importing substandard products and conniving with international traders to dump low-quality products into the country, without concern for the health of Nigerians or the longevity of their vehicles. Unfortunately, the regulator (NMDPRA) does not even have laboratory facilities which can be used to detect substandard products when imported into the country.

    Read Also: Petrol: We want right conditions from Dangote – IPMAN

    “Post deregulation, NNPC set the pace by selling PMS to domestic marketers at N971 per litre for sale into ships and at N990 for sale into trucks. This set the benchmark for our pricing and we have even gone lower to sell at N960 per litre for sale into ships while maintaining N990 per litre for sale into trucks.

    “In good faith, and in the interest of the country, we commenced sales at these prices without clarity on the exchange rate that we will use to pay for the crude purchased.

    “At the same time, an international trading company has recently hired a depot facility next to the Dangote Refinery, to use it to blend substandard products that will be dumped into the market to compete with Dangote Refinery’s higher quality production.

    “This is detrimental to the growth of domestic refining in Nigeria. We should point out that it is not unusual for countries to protect their domestic industries to provide jobs and grow the economy. For example, the US and Europe have had to impose high tariffs on EVs and microchips to protect their domestic industries.

    “While we continue with our determination to provide affordable, good quality, domestically refined petroleum products in Nigeria, we call on the public to disregard the deliberate disinformation being circulated by agents of people who prefer for us to continue to export jobs and import poverty.”

  • Dangote Refinery asks NNPCL, marketers not to import petrol

    Dangote Refinery asks NNPCL, marketers not to import petrol

    • ‘Our plant can meet local supply’
    • The merits of crude sale in naira, by president

    Business mogul Aliko Dangote yesterday advised the Nigerian National Petroleum Company Limited (NNPCL) and oil marketers to stop the importation of petrol.

    He told them that Dangote Refinery is capable of meeting local needs.

    He spoke after a meeting of the Implementation Committee on Crude Oil and Refined Products Sales in Naira in Abuja, which he attended.

    President Bola Ahmed Tinubu, who hosted the meeting at Aso Villa, explained that the sale of crude in naira would put the oil sector on an effective lane.

    He warned against a “revert to outdated and ineffective methods of the last 40 years”.

    Alhaji Dangote said: “I assured Mr. President we will be able to supply the market minimum of 30 million litres per day, and we’ll be ramping up as we go on. So, we’re ready. We’re more than ready.

    “What I’m saying is that the retailers should please come forward and load our products.

    “If they don’t come forward and pick, what do you want me to do? There is nothing I can do.

    “I am expecting either NNPCL or the marketers to stop importing; they should come and buy our products because we have what they need. And you know, as they move, I will be pumping.

    “I don’t know whether you understand what it takes to have a billion litres inside our tank. It’s costing me money every day.

    “If I am able to collect the naira, I can actually charge somebody 32 per cent in interest. So, right now, that’s what I’m losing.

    “And you are talking about 500 million, you know, I mean, we don’t print money. But the issue is that if they come and collect, then you will not see any queues in the filling stations.” 

    Chairman of the Committee and Finance Minister, Wale Edun, told the reporters that the sale of crude in naira to local refiners had set the economy on the path of industrialisation and modernisation.

    Edun led NNPCL Group Chief Executive Officer (GCEO) Mele Kyari; Central Bank of Nigeria (CBN) Governor Yemi Cardoso and Federal Inland Revenue Service (FIRS) Chairman, Zach Adedeji who are members of the committee to the meeting.

    Others who attended are Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Chief Executive Farouk Ahmed and his Nigerian Upstream Petroleum Regulatory Commission (NUPRC) counterpart, Gbenga Komolafe.

    Edun highlighted the positive trajectory of Nigeria’s economy following recent market-driven reforms, particularly in foreign exchange and petroleum product pricing.

    He noted that the policies were paving the way for industrial growth and private-sector investment.

    The minister explained that the market pricing of foreign exchange was steering the country toward industrialisation by facilitating private-sector refining of crude oil.

    He pointed out that local crude refining had bolstered the availability of raw materials, not only for Agriculture but for a range of industries, including chemicals, paints, building materials, and textiles.

    The reforms, according to him, align with President Tinubu’s broader economic strategy, which prioritises an enabling environment for private sector investment, job creation, and economic expansion.

    The minister also highlighted the benefits of market-driven pricing for petroleum products, which he said has strengthened the NNPCL’s financial stability.

    Edun added that this shift is empowering federal, state, and local governments with increased revenue to fulfil essential obligations, from paying public sector salaries to funding social services and infrastructure projects.

    While acknowledging that the reforms mark the early steps of a broader economic transformation, Edun expressed optimism about the country’s path to industrial development.

    He said: “We have market pricing of foreign exchange that has set the economy on the path to industrialisation, because with private sector refining of crude oil, we now have raw materials, not just for agriculture, but for industry, for chemicals, for paints, for building materials, for textiles.

    “This is Mr. President’s strategy and his policy of making conditions right for the private sector to invest, create jobs and grow the economy.

    “Likewise, the market pricing of petroleum products has also paved the way for NNPCL to restore its balance sheet, restore its financial fortunes, and of course, to give the Federation, state and local governments more funding to allow them to meet their obligations – salary payments to workers, social services to the population generally, and of course, key infrastructure development.

    “The economy has been set well and truly on a path, although it’s early steps, and there is much to be done, but we can now see a clear path to industrial development for modernisation of the Nigerian economy, because the key prices are right, and it is encouraging private sector investment.”

    He added that AfreximBank, the financial adviser, was part of the meeting, and would act as an intermediary, ensuring that the parties – the seller of the crude and the buyer of the crude – were able to complete their transactions.

    He said the implementation committee and the sub-committee had worked assiduously with all stakeholders to ensure the initiative was implemented.

    NMDPRA: 50m litres consumed daily

    Ahmed put the volume of daily petrol consumption at between 45 million to 50 million litres.

    He spoke on the sidelines of the ongoing 18th OTL Africa Downstream Energy Week in Lagos yesterday.

    Ahmed, who attributed the volume to increased industrial and consumer activities, expressed hope that recent price adjustments/market liberalisation would reduce cross-border smuggling.

    “We hope this price adjustment or liberalisation will discourage cross-border smuggling of the product, meaning that more petrol will stay within the country,” he said.

    The NMDPRA chief, however, believes that the petrol consumption levels were unlikely to drop significantly, according to the News Agency of Nigeria (NAN).

    ‘IPMAN buying from Dangote’

    Also yesterday, the Independent Petroleum Marketers Association of Nigeria (IPMAN) said its members had been lifting petrol from Dangote Refinery.

    “I am aware that marketers are buying petrol from Dangote,” said the association’s President Abubakar Maigandi.

    Dangote Refinery rolled out petrol from the plant on September 15.

    Read Also: Sustainability: Dangote Cement Commits to carbon emission reduction for business optimisation

    At the outset, the NNPCL was the sole off-taker of the product, selling to marketers and at its outlets.

    There was controversy over the cost price from the refinery, which contradicted the price announced by the NNPCL.

    However, the refinery failed to make its cost price public.

    The NNPCL also complained that Dangote Refinery was unable to meet its supply demand.

    Earlier this month, at the commencement of the crude sale to the refinery in naira, the NNPCL withdrew as the sole off-taker, paving the way for all marketers to purchase products from the refinery.

    The controversy lingered and last week, it became clear that Dangote Refinery had sued the NNPCL, the regulators of the downstream oil sector and independent petroleum importers, asking the court to preclude them from importation of petrol.

    The refinery asked the court to stop the regulators from issuing licences for importers.

    But in a statement, the refinery said all the issues had been resolved after the Federal Government allowed the sale of crude in naira to local refineries.

    It said the case would be withdrawn at the next adjourned date in January.

  • We’ll continue to develop solid mineral potential in Nasarawa – Sule

    We’ll continue to develop solid mineral potential in Nasarawa – Sule

    In this interview with some senior journalists, Nasarawa State governor, Abdullahi Sule, speaks about development strides in his state, and why he places a high premium on the development of the solid mineral sector, Onyedi Ojiabor was there.

    What are you doing to encourage solid mineral development in Nasarawa State?

    We are always not shy in trying to take a position. I think you need to go to the background of how it even started in the first place. I was the Group Managing Director of Dangote Refinery.

    While I was in Lagos, I had the opportunity, actually, of being informed or being invited to come and run for the Office of the governor. At the initial stage, I was a little bit, you know, uncomfortable being invited because I didn’t trust politicians, and I didn’t want to be invited only for them to eat my money and send me away, so I was worried. But when we finally made the decision that, yes, I was going to take the challenge, one of the things we did was to invite my good friend, Kunle Elebute, from KPNG, to come in and carry out a comprehensive survey and a study of Nasarawa State, because I will not claim that I knew Nasarawa State that much.

    After going to school outside Nasarawa State, studying in the U.S., working in the U.S., coming back to Nigeria, working in Lagos, I didn’t live much in Nasarawa State to know the state that well.

    Elebute and his team spent six months carrying out a very comprehensive survey. One of the things they mentioned was that Nasarawa was one of the richest states in the federation with great potential.

    And they mentioned to me the area that I know very well, oil and gas. They said there is the presence of hydrocarbons in Nasarawa State, and yet nothing was done. And they also mentioned solid metals, precious metals, and agriculture.

    I became more and more excited. So this is just a little background for you to know that we didn’t go into it by accident, it was as a result of the study.

    I’m happy that you went to that site, because like you mentioned, you know, the marble in that site, you have seen, you would have been more excited if you had gone to the site of our lithium processing plant, because evidently from the discussions, you did not go there. Now, those are all some of the issues that came up. You know, there is also a tin operation. I didn’t hear that you went to that place. These solid minerals factories are being duplicated across the state.  More companies are coming in to invest in the solid minerals sector right now.

    Read Also: Nigeria world’s largest transit point for illegal trafficking in ivory, pangolin scale – Speaker Abbas

    We pride ourselves as the state housing the biggest lithium processing plant in the country. But in reality, there is one coming that is bigger than that in the same Nasarawa State, so those are the kinds of things that are happening.

    We have also invested heavily in agriculture. I would have been happier if you had at least visited our farm, you know, of agriculture. Abdullahi Adamu, our first executive governor, has a farm of about 3,000 hectares of land. We have 10,000 hectares of land belonging to the state government. We have already started harvesting rice. It would have been exciting if you had visited that. We have not even signed any MoU with any buyer; instead, we are focused on harvesting the rice. We are keeping it in the warehouse, then form a pyramid of rice here and then make the noise. My background from the private sector is to make less noise and more productivity so that people will see our actions rather than our talking.

    How do you intend to ensure the sustainability of the Nasarawa State Vocational and Technology Center Lafia?

    I’m very interested more in skill acquisition. Everything that we do in Nasarawa State comes from our vision for the state. My parents couldn’t afford to send me to school in America. So for that reason, I went on a scholarship. When I arrived in the United States on scholarship in 1980, by 1982, Plateau State was already having challenges with the MPN Center, so we were not getting our scholarship.

    But I went to technical school. I did welding. Some of my schoolmates in the university, who were not getting their scholarships, had to abandon their school. But because I did welding, I got to Alcoa and got a job as a welder. So I went to school. I didn’t skip school for one day. I was going to school in the morning. I was doing welding in the night, you know, at Alcoa. It’s because I had skill. That is my number one motivation.

    My second motivation was when we in Dangote decided to construct the refinery you see today at Epe Lagos. When the whole programme started, with the silos, with the distillation unit, with some of the most sophisticated and expensive equipment that were there, the equipment manufacturers insisted that they needed skilled and certified technicians. We needed to go to India. We couldn’t get some in Nigeria.

    Dangote imported 4,000 technicians, 4,000 from India. We were the only ones qualified and deployed because nobody would have that kind of installation unit and allow a roadside mechanic without certification to do it. So that’s the second motivation for me. This was the reason I said that if I became the governor of Nasarawa State, we would produce skilled Nasarawa State citizens, who would be employed whenever another Dangote was looking for 4000 skilled artisans. At least we can say we in Nasarawa State have 500 technicians, go and look for the other 3500 elsewhere. This is the motivation. This is the dream. And we have a lot of people that graduated with all kinds of degrees, no skill. This is the skill for them.

    When I was the Managing Director of African Petroleum, one of the things that we saw was that employees with Secondary School certificates didn’t know what to do with the N15 million or N20 million given to them upon retirement because they lacked the skills.

    So now in Nasarawa State, we have pre-retirement skill acquisition so that when people are retiring, at least they get their money and they have the skill to go and set up a welding shop, a fabrication shop, a carpentry shop, an agricultural mechanization shop, something, you know, that they can do. Because when they remain idle, some people will take the money, get a second or third or fourth wife, and then get into more trouble, more children, and that’s the end of the money. But if he’s taking the money based on the skill that he has, then he becomes more useful in post-retirement. So we are doing it for youth, and we are doing it also for the elderly.

    Is there more you intend to do for women and youth empowerment?

    Of course, we do. We are going to continue to do a lot. The Vice President was here to launch for the first time in the country the Gender Document of our administration. It all has to do with women. It’s part of the Human Capital Development Agency, of which the Deputy Governor is the chairman. So all these are geared towards helping women.

    Nasarawa State is a pacesetter when it comes to women taking the lead in leadership and careers. For the first time, a woman is the Chief Justice of Nasarawa State, for the first time, we have a woman as Vice Chancellor of the University.  This is part of my administration’s vision to empower women, and the reason is that I have some very important women who came very close and played some key roles in my life, and I have seen that.

    And one of those is Ndi Okereke, former Director-General of the Nigerian Stock Exchange (NSE). I think since she left, something happened to the Nigerian Stock Exchange. And it’s because of the charisma she brought into the job, the honesty. So I have so much respect for women professionals. When we had our investment summit, it was early in the morning, and Amina Mohammed, of the United Nations, woke up very early and participated virtually. During the last United Nations General Assembly in New York, I had to walk up to her to thank her but she said she would do anything for Nasarawa, because she believes we are one of the most serious states. So, of course, we are doing everything for women. And the more women that come, the more women we will continue to give opportunities to.

    What motivates you to focus on the provision of rural infrastructure across the state?

    I’m a rural dweller. I’m sure they will show you my village. I come from a village. And so I grew up in a village. I understand village life. But to be honest with you, one of the most important things is that the wealth of Nasarawa State is in the villages. The wealth is not in the cities. The farming areas are in the villages. The minerals that we are talking about are in the villages.  So the activities that are actually going to bring out wealth in Nasarawa State are in the villages. So one of the things you must do is you must empower the villages to belong, to feel a sense of belonging. Our administration is that of inclusivity.

    We don’t want anybody to be left out. Whether youth, women, or the elderly, everybody is carried along. That’s why we are doing the training, the skill acquisition for young people who just graduated from school, and we are doing it also for those who are retiring because we want the entire value chain to be incorporated.

    I wish you had been to Farin Ruwa, a purely agricultural area. There we have a dam that has the capacity to generate power. But there was no road to the area. So we had to actually build a road. We had to construct a full-fledged asphalt road, to bring up all the potentials in the area. So the wealth is actually in our rural areas.

    How do you want to be remembered as the fourth executive governor of the state?

    Well, I want them to remember me as somebody who truly believes in the state. Someone who has come into the state with all sense of humility, honesty, prudent management of their resources, leader by example, and somebody who came in to bring out all the prospects of the state and convert those prospects to wealth for the benefit of the good people of Nasarawa State.

    So that’s how I want them to remember me, as someone who believes that we should set up the structures for the development of the state, from the civil service to the public service, all the way to our rural areas; a leader that wants everybody to feel some sense of belonging.

    Where do you get the funding for all these infrastructural projects across the state, given that Nasarawa is among those getting the least allocation from the government?

    We are among the states getting the least allocation from the federal government. But that doesn’t make us the poorest state. We are one of the states with the greatest potential in human and capital resources. We have mineral resources, oil and gas. I wish you had also gone to Obi Local Government Area where oil drilling is currently taking place. Our state is among only three states where oil exploration is taking place. For this reason, Nasarawa State can’t be poor.

    We are not borrowing money in Nasarawa State to execute projects. Since I came in, we have not gone to the bank to borrow money. It’s the mentality I have from the private sector that we should not go borrowing. I decided to block all the loopholes that we have. There is a lot of money in Nasarawa State, especially in revenue, but there are also many leakages. Our aim is to block leakages, but we still have a long way to go in terms of revenue generation for the state.

    We also look at some other sources of revenue. One of them is the advantage we have bordering the FCT. So you will see a lot of projects motivated by our proximity to the capital, especially, as it relates to housing. They are all targeted to rich people living in the FCT to come to Nasarawa. That is one of the things that we are doing.

    When we came in 2019, our Internally Generated Revenue (IGR) was N7.7 billion, but today it is over N20 billion annually. We also generate between N1.3 to N1.7 billion monthly.

    We have also gone to the federal government to see how we can access more revenue aside from our statutory allocation. Every time there is one grant or so from the World Bank or IMF, Nasarawa State is there. That is why we are number one in the first disbursement of NGCares. We got more money in the second disbursement than we got in the first disbursement. So if you look at all the various interventions from the World Bank, Nasarawa State is there.

    Most of these rural roads that you see today are being done from the money sourced externally. That’s how we are getting a lot of the resources that are going into health, education, and so on.

    What is your administration doing in terms of investment in Housing, and why has it become difficult to move roadside traders and bus drivers to the market and approved parks?

    The media is holding me back because the moment you take certain actions, people will say, ‘Oh, Nasarawa State governor is heartless. Oh, Nasarawa State governor is that. Oh, there is no job in the country, and the people who are just doing their business by the roadside, the governor has arrested them.’ But we are currently doing a lot on this highway. We have been clearing the illegal traders and motor parks along the road. But you clear them today, they come back tomorrow.

    Other options we are looking at currently include tolling the road and constructing a rail line that can connect Keffi to Apo. One of the reasons why I went to China recently was to explore the possibility of establishing a toll road or a bridge that will take off from Nyanya to Masaka.

    And then it becomes a toll and then we charge it. So all these are wonderful ideas, but wonderful ideas like one of the movies, what Nollywood stars say, they say a wonderful idea without money is no idea at all. And that is what we are looking at.

    But on housing, we started doing something. We have developed 200 hectares of land in Masaka into a Housing Peninsula. The houses there are partially completed and prospective buyers are expected to complete it and move in.

    There is another housing estate called Technology Village on your way to Gurku. It is called a Race Course. There is also another 200 hectares of land that is being developed. Customs officers took about 100 houses upon commissioning. Another major housing project was the one initiated by my predecessor, Tanko Al-Makura, it is called Gunku Kabusu. The area is connecting Mbappe to Maitama. We are already in the advanced stage with the FCT Minister to provide access roads in the area, because the road will benefit both parties.

    We are going to provide sites and services to the 13,000 hectares of land. Ours is to provide the infrastructure, the road, electricity, and water. So prospective investors can pick 1000 hectares, and 500 hectares to build estates similar to what we have in Lagos. But all of these require money to achieve. We as a state have to manage resources in such a way that all sectors are given the needed attention.

    Can you tell us what your administration has done in terms of security, pensions, gratuity, teachers’ welfare, and employment of teachers among others?

    Security is the backbone of everything, and that’s the reason why we took security head-on, on arrival. The first thing is to ensure that we have security with our neighbors, and then we have security within the state. So, a little over a month after I came in, there were a lot of issues about herder-farmer clashes.

    The TIV community is one of the communities that are both in Benue and Nasarawa State, with the Fulanis.  Remember the Benue State government enacted a law prohibiting open grazing in the state. This law is not in Nasarawa State, and this gave us lots of problems managing the tensions between farmers and herders. So, the first thing we did when we came on board was to douse the tension between farmers and herders and now our people can go to the farms freely. We have also spent a lot on internal security because we needed a situation where the people would feel free and comfortable. We have also spent a lot on introducing technology to security.

    Education is one thing we cannot play around with, so we started with a baseline survey on what needs to be done in the sector. So I set up an independent committee made up of think tanks from the Federal University. I didn’t want a state university because I didn’t want our influence. I became worried about the state of education in the north because anytime they mention the ten worst states in terms of education; the north is always at the forefront.  When you mention the ten best states in education, southern states always take the lead.

    So, we did a baseline survey to find out our challenges, and we’ve been working on that. We found some challenges including curriculum, infrastructure, quality teachers, and so on.

    If we employ 10,000 teachers, I don’t think it’s enough. And then, some of the quality of the schools is another major issue.

     I came in and found a polytechnic that was established and yet, none of the accredited courses was technical. The courses we met were Economics, Political Science, International Relations, and so on.  I have nothing against those courses, but then, the meaning of polytechnic is multi-technic.

    So, we must have multi-technic accreditation. So, today, we are happy that we have at least five technical courses that have accreditation.

    And I always give credit to the management that helped us to prepare. Accreditation takes a lot. It takes bringing in quality resources, people,  tools, and classes. Our administration has also established some technical institutions including the creation of the Faculty of Engineering in Gudi.

  • NNPCL: Dangote Refinery fails to meet 1.065b litres supply

    NNPCL: Dangote Refinery fails to meet 1.065b litres supply

    • Plant supplied 317m litres in 35 days

    • No new case in court, says Dangote Refinery

    Controversy over the supply of petrol from Dangote Refinery to the Nigerian National Petroleum Company Limited (NNPCL) deepened yesterday.

    In a new twist, a document from the state oil company showed that the refinery has been unable to meet the supply request.

    According to the document, the NNPCL requested for 1.065 billion litres between September 15 and October 20.

    But the Dangote Refinery supplied 317 million litres.

    The document titled: “Summary of Volume Loading” showed that in September, the plant supplied 103 million litres, being 26 per cent of the 1.065 billion litres.

    It also supplied 214 million litres, being 32 per cent of the expected volume.

    Read Also: Southeast states littered with abandoned projects

    The refinery rolled out petrol from its plant on September 15 with NNPCL as the sole off-taker.

    However, since the beginning of this month when the implementation of the crude sale in naira to local refinery policy initiated by the Federal Government took effect, other marketers have been cleared to make direct purchases from the 650,000 litres per day refinery.

    At the rollout of petrol, the NNPCL said it bought the product at N898 per litre from the plant.

    But Dangote Refinery contradicted the organisation.

    It did not give the amount it sold the product.

    This month, in its updated template, the NNPCL said it bought the product at N977 from the plant. This was also disputed.

    No new case in court, says Dangote Refinery

    Yesterday, Dangote Refinery said it had no new court case against the NNPCL and other stakeholders.

    The company explained in a statement by the Group Chief Branding and Communications Officer, Anthony Chiejina, that it will withdraw the pending case at the next adjourned date in January.

    “This is an old issue that started in June and culminated in a matter being filed on September 6, 2024,” he said.

    According to him, the parties are in discussion following the presidential directive on the naira-for-crude initiative.

    The statement reads in part: “We have made tremendous progress in that regard and events have overtaken this development.

    “No party has been served with court processes and there is no intention of doing so. We have agreed to put a halt to the proceedings.

    “It is important to stress that no orders have been made and there are no adverse effects on any party.

    “We understand that once the matter comes up in January 2025, we will be in a position to formally withdraw the matter in court.”

    The prayers before the court

    Dangote prayed the Federal High Court in Abuja for an order voiding all licences recently issued for the importation of petroleum products.

    It sought N100billion damages against NMDPRA for issuing import licences to NNPCL, Matrix Petroleum Services Limited (Matrix) and others to import petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) despite its production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria.

    The plaintiff contends that the licenses issued to NNPCL and others violated the Petroleum Industry Act (PIA).

    Dangote stated that it was greatly distressed, adding that its investments risk being jeopardised unless the court intervenes and declares that NMDPRA violates its statutory responsibilities under the PIA for not encouraging local refineries but issuing licenses for the importation of petroleum products.

    Dangote, in a supporting affidavit, stated that such licenses should only be issued where there is a petroleum product shortfall.

  • Now that NNPCL is out of the radar

    Now that NNPCL is out of the radar

    By James Odemu Brigidi

    The growing concerns surrounding fuel supply and prices in Nigeria have ignited a fierce conversation about accountability in the oil and gas sector. For many Nigerians, it seems like the Nigerian National Petroleum Company Limited (NNPCL) has become a convenient scapegoat for various economic challenges, particularly the recent bout of scarcity and resultant spike in fuel prices.

     However, this narrative overlooks critical factors influencing fuel availability and pricing, particularly the failure of private players like Dangote Refinery to meet operational promises.

    It has to be established from the get go, that NNPCL has now divested itself of the role of being the sole off taker of petroleum products, especially Premium Motor Spirit (PMS) more popularly known as petrol from Dangote Refinery.  With the recent approval by the government for all private marketers to buy directly from Dangote Refinery, we can correctly now say NNPCL is out of the radar as a sole supplier. It is in this regard that the conversation must shift from the previous focus to reflect the current situation of things.

    Firstly, it’s essential to understand the dynamics of fuel pricing in Nigeria, which is intricately woven into the nation’s economic fabric. The recent price hike has left many citizens outraged, prompting questions about who is truly responsible. For years, NNPC was often wrongly criticized for its seemingly ‘inefficiencies and lack of transparency’, leading many to mistakenly believe that the national oil company is solely accountable for fuel shortages and price fluctuations. However, the landscape has changed.

    We now have one new major player in the oil supply chain in Nigeria — the Dangote Refinery, a prominent private sector entity expected to significantly contribute to the nation’s fuel supply. With ambitious plans to refine crude oil and bolster local production, Dangote’s entry into the market was greeted with enthusiasm. Expectations were set high, with the refinery projected to handle about 650,000 barrels per day, amongst which a substantial quantity was anticipated to be made available to Nigerian consumers at a reduced cost. However, reality has shown a different picture.

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     Many Nigerians think that the Dangote Refinery is the messiah or saviour, no please. He is first and foremost a business man who will not give us PMS for free.

    We read about an agreement between NNPCL and Dangote Refinery to the effect that NNPCL will be the off taker for Dangote’s product to the tune of 25 million litres a day, and that was to start from September 15. However, information available shows that till date, the NNPCL has not been able to get anything more than 7 million litres a day, leaving a whooping shortfall of 17 million litres daily. Without being told, that’s a recipe for crisis. Marketers that were supposed to link up with NNPCL to receive whatever they had deposited for, could not get the product with the huge shortfall. And so, an artificial scarcity surfaced immediately.

    When the pump price jumped in about three  occasions from N468 to N898, people thought NNPCL was responsible as the sole off taker. Today, without NNPCL in the radar, Dangote is rolling out at N977 per liter. So, will a marketer go to Dangote Refinery and buy for N977 and sell the same for N700? Who does that?  Therefore, what is happening has nothing to do with the NNPCL.

    We must, therefore, come to terms with the fact that since commencing operations, Dangote Refinery has struggled to meet its supply agreements. The inability to deliver the promised volume of 25 million liters of fuel a day to the NNPCL as contained in the agreement earlier referenced had critical ramifications for the market, as a reliable supply is fundamental for stabilizing prices and ensuring adequate fuel availability. A reduction in supply directly contributes to higher prices, as demand remains consistent despite the lag in delivery.

    Many intelligent stakeholders in the sector have pointed to Dangote’s inability to fulfill the supply contracts as a key factor behind the recent price hikes. The anticipation surrounding the refinery and its promise to improve fuel distribution has, unfortunately, led to disappointment. When a significant supplier fails to meet its quota, market prices rise, and consumers are left grappling with the consequences. It is increasingly clear that the responsibility for the current spike in fuel prices and the scarcity being experienced must extend beyond the NNPCL and include scrutiny of Dangote’s operational capabilities.

    Moreover, it is crucial to address the underlying costs associated with fuel production. The conversation about fuel pricing in Nigeria must be transparent regarding the actual cost of refining, transportation, and distribution. For Dangote and other suppliers, the decision to raise prices is often driven by production costs, local and international market fluctuations, and their margin expectations. Businessmen, even those in positions of influence like Aliko Dangote, who runs one of Africa’s largest conglomerates, must navigate the tricky balance between ensuring profitability and serving the local market’s needs. This reality often leads to difficult decisions that may not be favourable for consumers.

    It is also worth mentioning that, as a businessman, Dangote cannot be expected to behave like a benevolent figure funding the nation’s fuel needs. He operates within the parameters of profitability, competition, and corporate responsibility. His obligation is to ensure that his refinery runs efficiently and serves its stakeholders, which in theory includes Nigerian consumers. However, it is unrealistic to expect any private entity to operate solely as a charitable organization.

    Acknowledgment of this fact is critical to understanding the broader dynamics at play in the Nigerian fuel market.

    In light of these realities, it becomes essential to challenge the prevailing narrative that conveniently places blame on the NNPCL for rising fuel prices. Instead, a more nuanced analysis is warranted — one that examines the roles and responsibilities of private players like Dangote Refinery and acknowledges the complexity of the market’s economic conditions.

    Furthermore, there is an urgent need for the government demand from private players like Dangote Refinery to establish a framework that promotes transparency within the industry. This entails not only determining the cost of producing fuel but also ensuring accountability in operational deliveries. This approach would empower consumers with the information necessary to hold stakeholders accountable for their actions, thus fostering a healthier market environment.

    As a nation, Nigeria can significantly benefit from a reevaluation of its oil supply chain dynamics. With private players like Dangote Refinery struggling to meet expectations, it is crucial to assess the conditions that inhibit their operational efficacy. To alleviate the burden of fuel price hikes, the government must engage in meaningful dialogue with these businesses and ensure that they are positioned to succeed.

    In conclusion, while NNPCL has historically faced its share of criticism, blaming it solely for the current fuel price increases in Nigeria oversimplifies a complex issue. The failure of the Dangote Refinery to meet its commitments — alongside the realities of operational costs and market demands — reveal that the answers are more multifaceted than the prevailing narrative may suggest. Moving forward, it is the responsibility of both state-owned and private entities to strengthen collaboration and transparency that benefits all stakeholders in the fuel supply chain. Only then can Nigerians hope to see a more stable fuel economy that reflects both market realities and their expectations for fair pricing.

    •Brigidi, an Energy and Security Expert, writes from Abuja.

  • Marketers get FG’s nod to lift fuel directly from Dangote Refinery, other

    Marketers get FG’s nod to lift fuel directly from Dangote Refinery, other

    Premium Motor Spirit (PMS) marketers are now free to purchase the product  directly from Dangote Refinery under terms freely negotiated by them,the Federal Government  announced yesterday.

    In effect, the Nigerian National Petroleum Company Limited (NNPCL) ceases to be the sole offtaker,in line with the agitation  of the marketers.

    Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said in Abuja  that the direct purchase mechanism allows marketers of Premium Motor Spirit (PMS) to negotiate commercial terms directly with the refineries, thereby fostering a more competitive market environment and enabling a smoother supply chain.

    This decision was taken at the second review meeting of the Implementation Committee on Domestic Sales of Crude Oil in Local Currency held on Wednesday.

    The Finance Ministry in a statement yesterday said that with the commencement of local PMS production, “the market is better equipped to support these direct transactions.”

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    Edun doubles as the chairman of the committee.

    The statement:“Following the directive of the Federal Executive Council (FEC) and the implementation of the new Naira-based sales mechanism, the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun  held its second review meeting on Wednesday October 10, 2024.

    “The meeting focused on assessing the transition towards a deregulated market structure for Premium Motor Spirit (PMS) and addressing the change in the purchasing model for petroleum product marketers.

    “The most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries. This marks a departure from the previous arrangement where the Nigerian National Petroleum Corporation (NNPCL) served as the sole purchaser and distributor of PMS from the refineries.

    “This direct purchasing mechanism allows marketers to negotiate commercial terms directly with the refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.

    “With the commencement of local PMS production, the market is better equipped to support these direct transactions. This transition is expected to enhance efficiency in product availability and stabilize market conditions for the benefit of all Nigerians.

    “The Committee recognises that there are questions and discussions regarding this change in the market structure. We are committed to providing clarity on this development and will continue to engage with stakeholders to ensure a seamless transition process.”

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association (PETROAN) had  complained bitterly about their alleged exclusion from direct buying of PMS  from Dangote Refinery.

    They said all their efforts to have talks with the management of the refinery had been rebuffed  and claimed that the exclusion of their members from direct buying of PMS from the refinery was partly responsible for the high price Nigerians pay for the product.

    They claimed that  there would be a reduction in the price of petrol once Dangote begins to sell directly to them.

  • JUST IN: FG permits marketers to purchase fuel directly from Dangote refinery

    JUST IN: FG permits marketers to purchase fuel directly from Dangote refinery

    The Federal Government has given petroleum marketers permission to get petrol directly from the refineries without using the Nigerian National Petroleum Company Limited (NNPCL) as an intermediary.

    The Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee, Wale Edun, disclosed in a statement on Friday. He provided an update on the start of product sales and crude acquisition in naira transactions.

    On October 10, the second post-commencement review meeting of the Implementation Committee, led by Edun, was reportedly conducted to assess the development of the Crude Oil and Refined Products Sales in Naira program.

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    “The committee is pleased to report a successful transition of operations in line with the directive issued by the Federal Executive Council. This directive has established a robust framework for local production and distribution of crude oil and refined products for local consumption in naira.

    “With this mechanism now in full operation, along with the commencement of local production, we are well-positioned to transition to a fully deregulated market for all petroleum products.

    “Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency,” the statement reads.

    Edun stated that the government is still optimistic that these actions would improve market conditions over time for the good of all Nigerians.

  • Tell Nigerians cost of your PMS, petrol retailers tell Dangote Refinery

    Tell Nigerians cost of your PMS, petrol retailers tell Dangote Refinery

    The President of the Petroleum Products Retail Outlets Association of Nigeria (PETROAN), Billy Gillis-Harris, has asked Dangote Refinery to stop operating in secrecy regarding the pricing of petrol.

    It urged the management of the refinery to be open and get inputs from stakeholders.

    The Dangote Refinery is an oil refinery owned by Dangote Group. Aliko Dangote, businessman and industrialist, is the Chairman of Dangote Group, the largest industrial conglomerate in West Africa.

    Gillis-Harris said this during an interview on Channels TV on Thursday.

    “Regarding Dangote price, as I speak to you this morning, I don’t know what Dangote price is all about and that is speaking a lot because at this point on Dangote campaign into Nigeria, retail outlets like us should know the price input of Dangote but they have kept that shrouded in secrecy up until now,” he said. 

    He noted that while the Nigerian National Petroleum Company Limited gave a price template, it did not reveal the input of Dangote Refinery in the pricing.

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    He said,: “NNPC gave us a price template that also did not tell us what is the exact price input from Dangote.

    “We will encourage Dangote to open up the space of communication, talk to stakeholders, get valuable inputs from everyone because it’s a business that involves Nigerians, retail outlet owners like us, different consumers, so there should be some level of business transparency, even if it’s a private business.

    “We are so proud that we have such facility operating in Nigeria but we need to start to see the works. I am unable to confirm to you if Dangote increased their prices or reduced it because we are not aware.”

    He noted that the refining company is open about its diesel price but not that of Premium Motor Spirit (PMS), also known as petrol.

     “I can tell you about their price for diesel because the diesel prices were made known to us, most of us patronise them for diesel but in case of the PMS, I don’t have any information,” he said.

  • Independent marketers adjust PMS to Dangote Refinery’s price, sell petrol for N1,200

    Independent marketers adjust PMS to Dangote Refinery’s price, sell petrol for N1,200

    Independent oil marketers on Wednesday adjusted the pump price of petrol in the Federal Capital Territory to reflect the price at which they bought the product from Dangote Refinery and Petrochemical Company.

    Checks revealed that many filling stations have adjusted their pump price of petrol to an average of N1,200 per liter.

    The adjustment followed the full deregulation of the downstream sector of the petroleum industry, which allowed the Nigerian National Petroleum Company Ltd to end its exclusive purchase agreement with Dangote Refinery.

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    This effectively opened up the market for other marketers to buy petrol directly from the refinery.

    The implication of this is that the NNPC will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery.

    This development aligns with the current practices for fully deregulated products where refineries can sell directly to marketers.

  • JUST IN: FG approves Dangote Refinery as sole supplier of jet fuel to airline operators

    JUST IN: FG approves Dangote Refinery as sole supplier of jet fuel to airline operators

    The federal government of Nigeria has declared that Dangote Refinery is now authorised to serve as the only provider of jet fuel, or Jet A1, to aircraft companies operating in the country.

    The minister of aviation, Festus Keyamo, disclosed this information in an interview that aired on Channels TV on Tuesday, October 8.

    According to Keyamo, the airline operators consented to let the 650,000 bpd refinery serve as their sole supplier of jet fuel, with his approval and cooperation.

    “The airline operators just met recently. With my blessing, it’s a decision from the airline operators in Nigeria that they should only buy from Dangote refinery Jet A1. 

    “You can see that yesterday we started a naira-for-crude purchase with Dangote. It’s all Naira, no Dollar component,” Keyamo said.

    He clarified that the timing is perfect because Dangote and the federal government recently put the naira-for-crude agreement into effect.

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    He made it clear that this arrangement would lessen the strain on foreign currency.

    “The price will no longer be subjected to the varying factors of the international market, nor the headwinds of oil price in the international market. It will be in local currency so we can be clear as to the cost of it. We will buy in naira. I’m sure we are going to have access to cheaper Jet A1 fuel,” Keyamo said.