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Dangote Refinery, NNPC Ltd Saga – Civil Societies To Monitor Crude Sales

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A coalition of Civil Society Organizations (CSO) at the weekend said it would set up a situation room to monitor the compliance of the Nigeria National Petroleum Corporation Limited (NNPC Ltd) to the presidential directive to sell crude oil to Dangote Refinery in Naira currency.

It was gathered that leaders of 28 CSOs were on a facility tour of the 650,000 bpd world’s largest single train refinery in Lagos, noted that the disposition of the NNPC Ltd and the regulatory agencies indicated that the they deliberately held down Nigeria’s refineries so that they could continue importing petroleum products.

Recall that President Bola Tinubu had in the web of controversies that trailed the face-off between Dangote Refinery and the NNPC Ltd intervened and directed the Corporation to henceforth sell crude to Dangote Refinery in Naira.

Speaking on behalf of others, Solomon Adodo of the Rise Up for A United Nigeria said what his group had seen was a world class facility and wondered how a regulatory agency of the government could take sides with importers of petroleum products when a local refinery is now available to bail the nation out of the forex quagmire which has made the price petroleum products to skyrocket.

He disclosed that the CSOs have concluded to petition the Presidency on the need to adopt Dangote Refinery as a national asset that should be used to liberate the country from the shackles of importation of fuel while it exports crude.

According to him, having gone round to see this world class project, we are at a loss as to why the government could decide to turn against Nigerians in this manner. But we are not too surprised give our past experiences. Those who are profiting from our collective misfortune will not want the Dangote refinery to work.

“We are ready to defend this facility with everything as civil society organizations. We are not speaking on our behalf but on behalf of all Nigerians and on behalf of our fatherland. It leaves much to be desired how an agency of government with oversight function to guide to grow such a project as this would now be disparaging same project. This is too bad.

“We have seen for ourselves and we have cleared all doubt as to the completion of this refinery and the readiness to supply all our domestic needs. We will expose them all. Anyone who is not ready to ensure Nigerians have a new lease of life must give way. Now it is fight to finish.

ALSO READ: How Dangote Refinery Would Consume N1.7tn Crude Monthly

“Going forward, we are going to set up a situation room to monitor the compliance of the NNPCL with the directive of Mr. President that Dangote Refinery would be supplied with Crude in Naira because we know that the enemies of the people would want to adopt another strategy to sabotage the presidential directive.

“It is a criminal audacity for an agency of government to brazenly disparage a national asset like Dangote Refinery, more so when government has four refineries and all of them are moribund, how then would you treat a private investor who has committed everything to build a functional refinery much more bigger than all the four own by government put together.

“Nigerians are not stupid; we all know what is interplaying here. They told us that after removing fuel subsidy, market forces would force the price down, what a fallacy of market forces, here we are, the forces have only succeeded in pushing the price up. Now we have a local refinery that will bail us out yet they don’t want it to operate. So that Nigerians would benefit from it.”

Adodo said that the CSOs would mount serious advocacy to make government accede to demands of Nigerians which is not just granting the sale of crude to Dangote Refinery in Naira but also ensuring Dangote fuel are available at petrol stations for Nigerians to buy.

The group appealed to the management of Dangote Refinery not to be discouraged but to trudge on as the group would mount serious campaign in favour of the refinery. “Even if it means we should protest, we will. We can’t allow this international embarrassment to stand.”

He argued that all the claims about monopoly against Dangote Refinery was just to call a dog a bad name in other to hang it. What Dangote Refinety will stand foe is not monopoly but ‘peoplepoly’. We will write the American Society of Engineers over this and the European Union. We will maintain eternal vigilance.

Speaking while welcoming the group, Vice-President, Dangote Industries Limited, Devakumar Edwin, described Dangote Refiney as a value adding facility as it will stop the exportation of Nigeria’s crude and importation of finished products and wonder why government would be against such a vision for Nigeria.

According to him, many African countries have minerals but they are not adding value to their economies because, those minerals are exported raw and the finished products are imported back into the country whereas vice versa should have been the order of the day.

“This is what Dangote refinery seeks to correct, we did same in Cement and Sugar sectors where Nigeria was a leading importer of those products and with the coming of Dangote leading the backward integration programme of the government, others cam into the sector and together Nigeria now exports cement to other countries.

“What we want to do in Refinery, we have done it other businesses, Nigeria used to be the biggest importer of Sugar, we came in and change the narrative. We led the backward integration scheme of the federal government, and we now produce sugar locally for domestic consumption and others have joined us. We did same in Cement by opening up production plant and today Nigeria exports cement to other countries.

“In a business no one was interested in investing into, Dangote delved into it determined to ensure Nigeria no longer imports fuel, invested massively and come up with the world’s largest single train refinery.”

He said he would not take his money to Dubai or Swiss banks as others are doing, he decided to invest at home and now they are saying he wants to create monopoly.

“We didn’t ask for any favour other than that we want to buy crude to produce, first they said there was no crude, later they said we would have to pay some dollars above the prevailing crude market price. And this is a global market where you can track crude prices anytime. We resorted to buying crude from Brazil and United States. Later they said we should not be announcing the price of the products.

“Even the US that is the leading proponent of of free market economy protects its local industries by imposing huge duty on from foreign imports just to protect local industries. This is a man that Saudi Aramco once approached to come and cite the refinery in Saudi Arabia, promising steady supply of cruse. Abu Dahbi also invited him to do same on their soil but he rejected insisting he would build at home, now he did that and a facility that is supposed to add value to Nigeria’s economy is being frustrated.”

The Dangote Vice-President said the Company would continue to focus on its business strategy which is to add value to Nigeria economy through investments and job creation for the teeming Nigerian masses. According to him, Nigeria can only consume 45% of the capacity of the refinery while the remaining 55% will be exported and bring into the country foreign exchange needed badly.

Energy

NNPC Ltd/TotalEnergies’ $550m Ubeta Upstream Gas Project Takes Off

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The $550 million upstream gas project between the NNPC Ltd and TotalEnergies on the development of the Ubeta field has taken off, the Presidency announced on Tuesday.

This was contained in a statement in Abuja, on Wednesday, by the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye.

ALSO READ: NNPC Confirms Petrol Purchase From Dangote In Dollars, Naira Transactions Commence Oct

According to Soneye, the Special Adviser to the President on Energy, Olu Verheijen, made the disclosure during an inaugural US-Nigeria Strategic Energy Dialogue, hosted by the U.S. State Department in Washington, DC.

“The signing ceremony of the 550 million USD Final Investment Decision (FID) on the Ubeta Field Development Project took place in Abuja in June, this year,” he stated.

The Ubeta field, which was discovered in 1964, is located northwest of Port Harcourt, Rivers State.

It was gathered that at a luncheon organised as part of the inaugural US-Nigeria Strategic Energy Dialogue, Verheijen revealed that the upstream gas project would deliver 350 million standard cubic feet of gas per day when operational.

Verheijen added that major energy reforms introduced by President Bola Ahmed Tinubu since June 2023 focused on improving energy security, attracting investments, and deepening collaboration with key partners, including the US government.

She said the key reforms had improved the viability of the gas-to-power value chain of the country.

The reforms, according to her, included initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed investors and to reduce carbon emissions from gas production.

She added that the President issued five new executive orders to support the reform efforts, aimed at providing fiscal incentives for investment and reducing the cost and time of finalising and implementing contracts to develop and expand gas infrastructure.

The presidential aide said the directives are aimed to immediately unlock up to $2.5 billion in new oil and gas investments in the country.

Responding, the U.S. Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt, said the dialogue was apt and strategic.

“The inaugural U.S.-Nigeria Strategic Energy Dialogue has set the stage for strengthened energy collaboration between the United States and Nigeria. Together, we’re advancing shared energy security, decarbonisation, and economic growth goals,” he said.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, led the Nigerian delegation to the event.

Officials from the Ministry of Power, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Content Development and Monitoring Board, and NNPC Limited were also in attendance.

The U.S. delegation included representatives from the Bureau of African Affairs, USAID, the U.S. Department of Energy, the U.S. Trade and Development Agency, and the Export-Import Bank.

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Energy

Uniform Pricing Of Local, Imported Fuel Is Fraudulent – NLC

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Joe Ajaero, the President of the Nigeria Labour Congress (NLC), has criticized the Nigerian government for its role in the current pricing dispute between the Nigeria National Petroleum Corporation Limited (NNPCL) and the Dangote Refinery, attributing it to erratic government policies.

In a press briefing at Murtala Muhammed Airport Terminal Two on Wednesday, Ajaero condemned the situation as fraudulent and argued that a deregulated market should encourage competition and consumer choice, not impose restrictive pricing.

He asserted that the attempt to regulate Dangote’s pricing or influence private sector costs undermines fair market practices.

Related News: Fuel Crisis Looms As NCSCN Urges Dangote Refinery To Address Fuel Pricing, Supply Issues

Ajaero called on Nigerians to voice their concerns, claiming the government’s actions are undermining the private sector’s ability to set prices.

He said, “For a product produced here, he didn’t import with dollars, there was no landing cost, and they want him to sell it at the same cost as what they are bringing from abroad. That is fraudulent and unacceptable.”

Additionally, Ajaero criticized the government for not repairing the refineries as promised in August of the previous year, noting that no progress has been made as of September 2024.

On the subject of the N70,000 minimum wage, Ajaero assured that implementation is on track according to the agreement made on April 18, 2024.

He confirmed that the National Assembly has approved the bill, and the committee on consequential adjustments is actively working on its rollout.

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Energy

Energy Reform Group Warns Of NNPC’s Alleged Plot To Thwart Dangote Refinery

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The Coalition of Energy Reforms Lawyers and Activists (CERLA) has raised serious allegations against the Nigerian National Petroleum Company Limited (NNPC Ltd), accusing the state-run oil firm of attempting to sabotage the operations of Dangote Refinery.

In a recent press briefing, CERLA claimed that the NNPC Ltd falsely reported that Dangote Refinery was selling Premium Motor Spirit (PMS) at ₦868 per litre.

Read Also: Ighodalo Sues Oshiomhole Over Ponzi Scheme Allegations

The coalition’s spokesperson, Okwa Dan, condemned these actions, labeling them as a deliberate move to obstruct the progress of Dangote Refinery while fostering corruption within Nigeria’s energy sector.

“The NNPCL has consistently acted as a barrier to transparency in the sale and distribution of crude oil in Nigeria,” Dan remarked.

He further criticized the company for favoring the importation of low-quality fuel, which he described as both “fraudulent and counterproductive.”

Dan also accused the NNPCL, under the leadership of Mele Kyari, of sustaining a fuel subsidy scam that has kept the country dependent on imported PMS.

According to CERLA, the latest actions against Dangote Refinery are part of a broader scheme to stifle locally operated refineries.

“The NNPCL’s operations remain opaque, and we question why it has been designated the sole off-taker of PMS from Dangote Refinery,” Dan said, further arguing that the NNPCL’s claims of high PMS prices are misleading, as Dangote’s crude stock is priced in dollars.

CERLA has called on the NNPCL to cease what it terms a “slander campaign” against Dangote Refinery and has threatened legal action if the issue persists.

The coalition emphasized that the Nigerian public has suffered enough from the NNPCL’s lack of transparency and demanded accountability from the corporation.

Dan concluded by suggesting that the NNPCL’s discomfort stems from the emergence of the Dangote Refinery and urged the government to intervene in the matter.

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