The Nigerian petroleum industry has witnessed a series of accusations and counter-accusations in recent weeks. At the center of the controversy is President Bola Ahmed Tinubu, who has been unfairly attacked by naysayers of the Dangote refinery.
Despite his commitment to supporting the refinery, Tinubu has been accused of owning a refinery in Malta and frustrating Dangote’s efforts to advance his business interests. These claims are not only baseless but also mischievous.
Lest we forget, the Petroleum Industry Act (PIA), passed in 2020, governs the petroleum industry in Nigeria. The Act promotes competition, transparency, and fairness in the sector. President Tinubu’s administration has been diligent in ensuring compliance with the PIA, which has been misinterpreted by some as a move to frustrate Dangote’s refinery. Nothing could be further from the truth.
The launch of the Dangote refinery is a landmark achievement for Nigeria, and President Tinubu has declared his support for the project. He has directed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery in Naira, a move aimed at stabilizing the pump price of refined fuel and the Dollar-Naira exchange rates.
Besides, the Petroleum Industry Act (PIA) makes it obligatory for IOCs and other producers to sell to local refineries like Dangote, just as the pricing of the crude is based on a willing-buyer/willing-seller basis. The target is to balance upstream development with a sustainable domestic energy supply chain, reinforcing its role in fostering a fair and profitable oil production environment.
Despite this, some individuals have continued to peddle falsehoods against the president. They claim that he is trying to hand Dangote a monopoly in the petroleum sector, citing his alleged ownership of a refinery in Malta. These claims are not only fictitious but also a desperate attempt to score cheap political points.
The PIA is clear on the need to prevent monopoly in the petroleum sector. Section 105 of the Act states that the Authority shall promote competition and transparency in the petroleum industry and prevent anti-competitive practices. Section 106 further mandates the Authority to regulate prices and tariffs to prevent exploitation and ensure fair competition and consumer protection.
President Tinubu’s administration has been meticulous in ensuring compliance with the PIA. The decision to sell crude oil to Dangote Refinery in Naira is a testament to this commitment. The move will eliminate the need for international letters of credit and save Nigeria billions of dollars used in importing refined fuel.
The unjust attacks on President Tinubu are a distraction from the real issues facing Nigeria’s petroleum sector. Compliance with the PIA is crucial in preventing them. The Dangote refinery has the potential to transform the petroleum sector in Nigeria, but concerns have been raised about the potential for monopoly. The government must not succumb to blackmail by Dangote’s cronies and their tactics, which could lead to a monopoly that harms Nigerians and undermines the spirit of the PIA.
Compliance with the PIA is essential to prevent monopoly in Nigeria’s petroleum sector. The government and regulatory bodies must act to ensure a level playing field, promoting competition and protecting consumers. Only then can Nigerians reap the benefits of a fair and competitive market.
Additionally, it is important to note that the PIA is a comprehensive legislation that aims to promote a fair and competitive petroleum industry in Nigeria. The Act provides a framework for the regulation of the industry, including the promotion of competition, transparency, and consumer protection.
The government and regulatory bodies must ensure that the PIA is implemented effectively to prevent any potential monopoly in the petroleum sector. This includes monitoring the activities of players in the industry, regulating prices and tariffs, and preventing anti-competitive practices.
Furthermore, the government must also ensure that the Dangote Refinery is not allowed to dominate the market, stifling competition and harming consumers. While the refinery has the potential to transform the petroleum sector, it must be allowed to operate in a fair and competitive market.
Notable unions like NUPENG and PENGASSAN in the oil sector that monitor and ensure the well-being of oil workers are not allowed in Dangote Refinery. No one is qualified to question the Dangote Refinery, including the self-acclaimed proxies who are paid for their role as noise makers.
In summary, the unjust accusations against President Tinubu regarding the Dangote refinery have been debunked, and the President has declared his support for the refinery. It is quite obvious that the promoters of the frustrating Dangote Refinery narrative are harping on the issue to play regional cards. Until we begin to appreciate good governance and stop ethnic coloration of government actions and good intentions Nigeria continue tottering within the confines of developing countries.
The misconception about the Nigerian National Petroleum Company Limited (NNPCL) trying to frustrate the Dangote Refinery stems from the delusion that the refinery is capable of reducing the price of petroleum products. But I ask: to what extent have the companies owned by the Dangote Group reduced the prices of cement, sugar, tomato paste, spaghetti, macaroni and other commodities they are producing? These are items being produced in Nigeria by a business conglomerate that owns the Dangote refinery.
The truth is that some members of the cabal in the oil industry who are angry that the provisions of the PIA are preventing them from crude oil theft are also capitalizing on the issue to fight back. Instead of owning up to their regional bias and stiff resistance to efforts by the Renewed Hope administration to purge the oil industry of corruption, these hawks in the sector are peddling false narratives that President Tinubu is anti-North. But we all know that a president who is anti-North would not be executing the kind of projects that are ongoing in the region.
From my experience as a professional in the oil sector and a forensic executive director with African Refinery and Gas Company Ltd, President Tinubu has given equal protection and opportunity to all stakeholders, both in the upstream and downstream sectors, unlike in previous administration when you can’t even have access to the minister and other top public officials to perfect clean oil transactions.
Even the members of Modular Refineries Association of Nigeria have commended President Tinubu who they said, as the minister of Petroleum Resources, is taking crucial steps to eliminate oil theft in the country. The chairman, Crude Oil Refineries Owner’s Association of Nigeria, Mr. Momoh Oyarekhua, urged the president to do more to assist modular refinery owners to scale their operations.
Before buying into the needless hues and cries over witch-hunt of the Dangote Refinery, Nigerians should not forget how former President Obasanjo was deceived and hoodwinked into privatizing Bacita Sugar Company in Kwara State and the Numan Sugar firm in Adamawa, as well as Sunti Sugar Company in Niger State. Curiously, where are these sugar companies today?
The Benue Cement Company and Obajana Cement companies were privatized. But despite billions of naira spent on infrastructural development in the companies’ site, Nigerians cannot boast of buying cement or sugar at affordable prices. Those who have tried to build at least a one bedroom flat can testify about what they have gone through to afford a bag of cement.
When AIT, Channels, TVC and other private national televisions began transmission, the government-owned television network, NTA, was not privatized; yet, NTA is still rendering standard quality services. This is why President Tinubu should not allow the oil cabal to push him into total privatization of the NNPCL. Nigerians should ask questions about the $6 2billion being 20 percent shares FEC directed the NNPCL to acquire in Dangote Refinery.
our president listens to Nigerians and I know he will not hesitate to act on questions being asked like the whereabouts of the $1,5 billion earmarked for Kaduna refinery and $1.5billion for the Warri refinery maintenance and repairs. President Tinubu must act now because Nigerians believe strongly that he can save them from the hands of this oil cabal.
On a final note, I join other well-meaning Nigerians out there to say no to the sponsored protest against President Tinubu’s government. God bless Nigeria!
