In order to satisfy local demand, Aliko Dangote, the chairman of the Dangote Group, urged petroleum marketers, including the Nigerian National Petroleum Company Limited, to purchase petrol straight from his refinery on Tuesday.
L-R: Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun; Chairman, Dangote Group, Alhaji Aliko Dangote; and Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, briefing State House Correspondents after their meeting with President Bola Tinubu at the Presidential Villa in Abuja… on Tuesday. Photo: NAN
The NPA is anticipating a vessel carrying 20,115,000 litres of Premium Motor Spirit, also referred to as petrol, at the Tincan Island Port in Lagos on Wednesday, October 30, 2024, according to data gathered from the Nigerian Ports Authority.
Dangote confirmed the refinery’s readiness to supply fuel after closed-door talks with President Bola Tinubu at the Aso Rock Villa, Abuja.He represented the Implementation Committee on Crude Oil and Refined Products Sales in Local Currency, which was chaired by Mr. Wale Edun, Minister of Finance. Mr. Mele Kyari, GMD of NNPC, attended the meeting as well.
Since the Federal Government first announced the policy last July, the committee has been at the Villa to update President Bola Tinubu on its activities.He said that at full capacity, the refinery can produce more than 30 million litres of fuel per day and has 500 million litres in reserve, which would last the nation more than 12 days without imports.Dangote told State House Correspondents, “We are more than ready,” and that the refinery’s output could greatly reduce Nigeria’s fuel requirements.
Fuel queues have resurfaced, especially in cities like Lagos and Abuja, due to significant price hikes and supply chain issues.NNPCL raised petrol prices to over N1,000/litre in some areas, exacerbating public frustration as some stations temporarily closed, leading to longer wait times and reliance on black markets.
The government attributes these challenges to recent logistical disruptions.Addressing concerns of fuel scarcity in several parts of the country, he said, “I have a refinery. I’m not in the business of retail. If I’m in the business of retail then you can hold me responsible. But what I’m saying is that the retailers should please come forward and pick. If they don’t, come forward and pick, what do you want me to do?
Therefore, I anticipate that the marketers or the NNPC will cease importing; they ought to come and choose since we have what they require. Additionally, I will be pumping as they move.I am not sure if you realise how much work it takes to maintain a billion litres in our tank. It costs me money every day. I can actually charge someone 32% interest if I can succeed in collecting the naira. That is what I am losing at the moment.Furthermore, you are referring to 500 million, even though we do not print money. The problem is that there will not be any lines at the filling stations if they come and pick up.
The Federal Government authorised the use of the naira in crude oil transactions with regional refineries in July.It promised to provide local refineries with 445,000 barrels of crude oil per day for domestic use, starting with the Dangote Refinery for a period of six months.The African Export and Import Bank was chosen as the pilot settlement bank to handle the transactions; its chairman, Prof. Benedict Oramah, met with President Tinubu that month.During the crude allocation pilot phase, products will be supplied at a fixed naira-to-dollar exchange rate that will be reviewed every six months, according to Mr. Zacch Adedeji, President Tinubu’s Special Adviser on Revenue and Chairman of the Federal Inland Revenue Service.
However, Dangote disclosed during Tuesday’s meetings that Naira-based crude and petroleum transactions will use competitive crude pricing and a market-driven exchange rate.According to him, Afreximbank acted as a mediator in the settlement between Dangote, other refiners, and NNPC after President Tinubu ordered that NNPC and independent marketers buy petroleum on these terms.We will use both the crude price and an exchange rate set by the market based on our meeting.
Additionally, Mr. President instructed NNPC to purchase. Marketers will purchase as well. They will be purchasing from NNPC retail, just like everyone else.Dangote clarified, “Afreximbank is another option that we have at the end of the day, and I believe they will now be the go-between.””The shift to market-based pricing helps NNPC stabilise its finances, allowing greater funding for federal, state, and local governments to meet public obligations like salaries and infrastructure,” said Edun, Minister of Finance.Notwithstanding early obstacles, he said, the private sector’s engagement and steady policy support are intended to maintain this progress.
“What made it most possible is that now we have market pricing of petroleum products. Relatedly, 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, chemicals, paints, for building materials for textiles, and of course.
“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 NNPC to restore its balance sheet, and financial fortunes, and to give the federal 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,” Edun explained.
The Nigerian Ports Authority said it is expecting a vessel with 20,115,000 litres of petrol on Wednesday, October 30, 2024, at the Tincan Island Port in Lagos.The NPA, in its ‘Daily Shipping Position’ obtained by The PUNCH, said that 13 other vessels carrying different consignments, including used cars, will also berth at the ports.
“The remaining 13 vessels will berth with different consignments including butane, containers, AGO (diesel), and bulk wheat, among others,” the NPA stated.The expected vessels will berth at Kirikiri Lighter Terminal, Five Star Logistics, NigerDock, and Josepdam Port Services, among others.The NPA added that vessels with 300 units of used cars arrived on Monday while another one with 250 units is expected to arrive on Saturday, November 2nd.The NPA said that a vessel with 26,820,000 litres of AGO (diesel), which arrived at the port on Tuesday, is currently discharging.
Meanwhile, the agency added that vessels with other consignments are currently waiting to berth at Lagos Ports.
