'NNPC has allocated over 35 cargoes of crude to the Dangote refinery. Dangote has received about 23, rejected two based on pricing, and is currently negotiating pricing on at least nine cargoes. The Dangote refinery has received a discount of close to $1 per barrel, saving up to $30m.
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I had the chance to weigh the two and asked why the government was saying Dangote was creating a monopoly. In my research as a consultant to the energy sector, I know that no government would ever put its energy security in the hands of one man or company. They try to create a balance. Unfortunately, Nigerian society is one with a herd mentality, where we like to support any person we feel is being deprived by the government because the government has consistently punished us.
All of these issues were discussed, and Dangote agreed. But in the long run, it became business as usual; they had to source for forex if they wanted to buy diesel from Dangote. The issue of having to truck the product is there. For somebody with a depot in Calabar, for example, how do you expect that person to truck 15,000 metric tonnes of fuel with about 606 trucks? This is something a small vessel can carry at once and take through the sea almost at next to nothing.
The problem is that most of these people do not explain. They just say these things and assume that the people they are talking to understand everything, but not everybody understands. The ordinary man on the street is hungry and angry with the government because industries are leaving Nigeria, and prices are high as subsidies are being paid; so, for that, anything against the government is fine. So, he probably didn’t explain it this way.
Remember the $3.3bn loan that we took from AFREXIM Bank? 90,000 barrels per day were tied to it. Mind you, we lie to ourselves; NNPC said oil production had increased to 1.7mbpd, and some said we are hovering between 1.2mbpd and 1.3mbpd. But in actual sense, if you do your research, we are likely hovering between 700bpd and 800bpd or maybe 1mbpd.
The NMDPRA is the regulator and has officials who collect daily data samples, maintain records, and conduct laboratory tests. Since the deregulation of AGO, NNPC has not imported diesel. The NMDPRA is mandated to certify the quality of any product from any refinery in the country, whether private, public and even refineries owned by the NNPC.
What, in your view, is the NNPC doing to get other players into the field rather than depending on import? From what I gathered, the government said it had supplied Dangote with about 36 cargoes of crude oil. We are discussing energy in Nigeria; we’re not discussing it at the surface level. This is information you can fact-check and verify. The allegation is that the cost of sale to Dangote is at a discount because the government also wants to encourage him.
Why will Tinubu be fighting Dangote? Why will a president who wants investment be fighting a businessman? If he is fighting Dangote, will he instruct NNPCL to sell crude meant for local consumption to Dangote and other local refineries?
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