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I’m ready to lose money to give Nigerians cheap fuel – Dangote
Aliko Dangote, President of Dangote Industries Limited (DIL), was on Thursday, quoted to have vowed to ensure Nigerians got cheap Premium Motor Spirit (PMS), otherwise known as petrol, even if it means losing money at the end of the day.
The conglomerate is the owner of Dangote Refineries Limited (DRL), Nigeria and Africa’s first private facility and the first to be built in the continent in the last 35 years, which has now begun the refining of PMS a few weeks ago, months after it began the production of diesel.
Devakumar Edwin, Vice President, Oil and Gas of DIL, who disclosed this on Thursday, on the day he gave details on the negotiation between the DRL and the Nigerian National Petroleum Company Limited (NNPCL), on the distribution and sales of the PMS, that the company had accepted to sell the refined petrol from its 650,000 barrels per day refinery in naira, Nigeria’s local currency, as part of the particulars of the agreement.
Edwin, told participants at an X Space event hosted by ‘Nairametrics’ detailing the progress made by the refinery in the production of PMS, that the NNPC had informed the management of Dangote Group of its intention to station a team of six to 10 people permanently at the $20 billion refinery to oversee the production and buying back the products in Naira since the national oil company would be supplying the crude.
Informing that the request aligned with the NNPC’s aim to closely monitor the entire process, ensuring consistent crude supply and efficient processing while securing a steady flow of PMS for the country, he said: “NNPC has informed us that they intend to station a team of six to 10 people permanently at our refinery.
“They’ve asked us to provide office space for them since they will be supplying the crude, overseeing the production, and buying back the products in Naira. This request aligns with the NNPC’s aim to closely monitor the entire process, ensuring that crude is supplied and processed efficiently while securing a steady flow of PMS for the country.”
Providing further information on the production and commercial arrangements at the refinery, Edwin noted that the discussions with the NNPC revolved around a new model for crude supply where the refinery will buy crude from the government in Naira and sell PMS in the same currency, rather than in dollars.
Explaining part of the details of the negotiations, with critical aspects like crude pricing and the Naira exchange rate yet to be finalized, he said: “We are still in talks with the government about receiving crude in Naira. The discussions are ongoing, and nothing has been finalised yet. Some unresolved issues include the pricing of crude, the pricing mechanism, and determining the appropriate exchange rate for the Naira.
“Dangote intervened and said, we are going to accept this because the country desperately needs foreign exchange, and the value of the Naira is deteriorating every day. I understand that I am going to take a loss – because, by the time we sell the product and convert it to dollars, the exchange rate may have worsened.”
Edwin also expressed frustration over the seeming boycott of Dangote Refinery’s products by local marketers, revealing that despite the refinery’s efforts to supply affordable petroleum products, many traders in Nigeria have refused to purchase from the facility, preferring to continue importing refined products from abroad.
He said: “The whole purpose of doing this refinery in Nigeria was to utilise our local crude instead of exporting raw materials and importing finished products. We should be able to refine and use the finished products within Nigeria and produce more to export the surplus.”
But he regretted that despite the refinery’s large production capacity, local marketers were only purchasing about three per cent of the output, while the remaining 97 percent of the refinery’s production, including diesel and jet fuel, was being exported due to a boycott by local traders who refuse to buy at the refinery’s lower prices.
Hear him: “I’m selling two to three per cent to small traders who are willing to buy, while the rest 95 to 97 per cent I’m forced to export,” suggesting that some marketers prefer to import for reasons he did not state. Oil marketers wrote to President Bola Tinubu, complaining about the refinery’s pricing strategies, especially for reducing the rate Nigerians buy diesel. They wrote to His Excellency, the President, claiming that we are disturbing the market by dropping our prices.”
Explaining that the refinery had the capacity to produce up to 54 million litres of refined petroleum products per day, depending on crude oil supply, he lamented that local crude supplies had been inconsistent, forcing the refinery to rely on imported crude from countries like the US and Brazil.
He stressed that the situation was further worsened by International Oil Companies (IOCs), which prefered to prioritise foreign markets and selling crude oil at prices above the market rate, adding that just 44 per cent production of the refinery was enough to meet Nigeria’s petroleum needs, while the rest could be exported.
He added: “We have invested a lot on training and capacity of the production with the refinery capacity. As I said, 44 per cent of the refinery production can meet 100 per cent of the requirement of the country.
“So, the balance 56 per cent of the refinery’s production will have to be exported, whether it is jet fuel, whether it is diesel, whether it is PMS, we have to export 56 per cent of our production because 44 per cent will meet all the requirements of the country.
“So, we are not only going to save a lot of foreign exchange by import substitution, but we are also going to generate a lot of foreign exchange by exports. Now, you talked about the transparent mechanism of the pricing. So, as I said, NNPC is giving us the crude and they are going to have people sit here to monitor all the production processes, the stocks which are coming out, everything.
“And they are going to agree on the price at which they will sell the crude in Naira and then they are going to collect all the products. So, they are going to work through to see how the prices will be.
“So, it is not something where we are trying to exploit somebody. We can load 2,900 tankers every day. But we are not even loading up to 29 tankers per day. So, it is very strange that after putting the refinery to supply the products locally, every diesel I am producing, I have to export. Every jet fuel I am producing, I have to export because they do not want to buy from us. So, we are in a very strange situation.
“With investment of about $3 billion in fertiliser and $20 billion in the refinery, unless the business makes some money, it will not be able to invest in upstream. I’ve been an employee of Aliko Dangote for as far back as 33 years. I can say that all the money he makes goes into further investment to ensure the employment of Nigeria’s teeming population.
“He has not built any other palace or any other house. He is living in the same 35-year-old house. The only thing he can sit is an aluminium sheet shed. Nothing else he has built. And 33 years ago when I joined, he had a house in Atlanta. He was a neighbour to Ted Turner, the then owner of CNN.
“He sold it. He had a house in London. He has sold it. When we were doing the sugar refinery in 1997 to 1999, he sold all those houses and put the money in the sugar refinery. All the money we made from our textiles and salt he put it in sugar refining, flour milling, pasta and noodles. Then all the money which we made from that, he started investing in cement.
“Now the money which he has made in cement, he has been investing in oil and gas, fertiliser and refinery. All our businesses are listed companies. So how much profit we are making as a company, how much dividend he is getting, are all published figures. So, you can see all the money where it is going.”
Godswill Akpabio, Nigeria’s Senate President, on Friday, pushed back against reports quoting him as promising to retrieve tickets from winners of the All Progressives Congress (APC), in lieu of sitting senators, who failed at the party’s primaries recently.
He also spoke on the issue of the comprehensive probe called by Adams Oshiomhole, former Governor of Edo State, now Senator representing Edo North at the National Assembly, clarifying his position on the matte, which has since raised a lot of dust within the polity.
The twin issues, dominated the outcome of proceedings on Thursday, on the day the Senators returned after going on recess to participate in the party primaries that took place across board in Nigeria in line with the electoral outlay of the Independent National Electoral Commission (INEC).
Akpabio, former Governor of Akwa Ibom State, former Minister of the Niger Delta and now Chairman of the National Assembly, who conveyed his position through Eseme Eyiboh, his spokesman, denied ever making such promise to his colleagues, as it went against the grain of democratic ethos, which he had vowed to uphold.
Regarding the probe of the military, Akpabio, in the statement, stressed the need not to distract the institution, but provide it with all the needed support, giving the parlous security situation in the country, its personnel had been battling relentless.
The statement read in full: “The attention of the Office of the President of the Senate has been drawn to misleading reports circulating in sections of the media suggesting that the President of the Senate has promised to secure senatorial tickets for senators who lost their party primaries.
“We must categorically assert that this report does not reflect the position of the President of the Senate. For the record, Senator Akpabio has neither made nor authorised to be made such promise.
“What the President of the Senate actually said, in the course of interacting with his colleagues, was to empathise with senators who were affected by the outcome of their primary elections.
“He assured them that the leadership of the All Progressives Congress, (APC), is actively working to address all issues arising from the primaries and that the final list of candidates will be released in due course in line with the party’s constitution and electoral guidelines.
“Senator Akpabio remains committed to party discipline, due process, and the internal mechanisms of the APC for resolving disputes. He will not interfere with the autonomous processes of the party or make commitments that are outside the purview of the National Assembly leadership.
“The office also notes another report quoting a distinguished Senator on the need for the Senate to probe the military over recent security incidents. While legislative oversight is a constitutional responsibility of the National Assembly, Senator Akpabio’s position is that this is not the opportune moment for a public probe of the Armed Forces.
“At a time when our troops are engaged on multiple fronts against terrorism, banditry and other threats to National Security, subjecting the military to a public legislative inquisition could undermine morale and operational focus.
“The Senate President believes strongly that support, collaboration and closed-door engagements with security agencies are more productive at this critical time. Oversight will be exercised responsibly, without creating distractions that embolden adversaries or divert attention from the urgent task of securing Nigeria.
“Senator Akpabio urges the media and the public to disregard sensational and inaccurate misrepresentation of his remarks and to always seek clarification from his office before publication.”
No candidate was imposed neither was any member barred from participating in the process, the Nigeria Democratic Congress (NDC), said on Thursday, which defending the integrity of the exercise, which ended on May 29.
In a statement by Ikenna Enekweizu, National Secretary, party said that all aspirants were given a fair opportunity to participate in the democratic process, adding that the selection process was driven by consultation, consensus-building, and stakeholder engagement through established leadership structures across the country.
Stressing that its National Secretariat was never involved in the business of picking, choosing, or imposing candidates on any constituency or state, contrary to allegations that have emerged following the conclusion of the primaries, the statement added: “At no time has the NDC National Secretariat been involved in the business of picking, choosing, or imposing candidates on any constituency or state.
“Aspirants seeking elective positions were directed to engage with caucus leaders, stakeholders, and grassroots members in their respective states, who were responsible for consultations and recommendations based on local political realities. In the South-East geopolitical zone, our presidential candidate, Peter Obi, joined the party with an existing network of respected political leaders and elder statesmen who currently serve as caucus heads across the region.
“These include former governors and senior political figures such as Sam Egwu, Okwesilieze Nwodo, and Achike Udenwa, among others. The party explained that these leaders were tasked with conducting stakeholder consultations and helping build consensus around aspirants in their respective states.
“These leaders were entrusted with conducting stakeholder consultations, building consensus, and making recommendations to the party based on their understanding of the peculiar political dynamics in their respective states.
“Aspirants who disagreed with stakeholder recommendations were not excluded from the process but were allowed to test their popularity through grassroots primaries. This process was conducted without prejudice to the rights of any aspirant. Where aspirants disagreed with recommendations made by stakeholders or caucus leaders, they were free to test their popularity through the democratic process at the grassroots level, and this was duly accommodated,” the party said.
Addressing concerns raised by some aspirants following the primaries, the NDC acknowledged reports of individuals prematurely declaring themselves candidates as well as complaints regarding aspects of the process.
However, it maintained that such issues had been referred to the party’s appeal panel and leadership for resolution.
The statement also highlighted the party’s commitment to affirmative action and greater female participation in politics, noting that efforts had been made to encourage women to seek elective offices while also considering the interests of serving lawmakers.
Looking ahead, the NDC announced plans to begin a broad reconciliation process aimed at healing divisions and strengthening party unity after the conclusion of the primaries.
“As resolved at yesterday’s NEC meeting, we now look forward to the commencement of a comprehensive reconciliation process. We count on our esteemed caucus leaders, state chairmen, stakeholders, and party leaders to engage all aspirants and members in the interest of unity, cohesion, and the continued growth of our party.”
The party reiterated that its role throughout the nomination process was primarily to welcome new members and aspirants, reassure them of its commitment to fairness and transparency, and direct them to the appropriate caucus structures for participation in party affairs.
According to the NDC, the approach reflects its commitment to internal democracy, consultation, inclusiveness, and respect for established leadership structures as it continues preparations for future elections.
Idi Abbas, Chief of the Naval Staff (CNS), on Friday, prayed for a legislation to establish a special court to try those caught in the business of stealing crude oil in Nigeria, saying the current general law was not too helpful in stemming the tide.
It was also a day he claimed that the powerful forces behind the syndicate had a way of projecting fronts while remaining behind the scene, which made it almost impossible to track them to face justice.
In fact, Abbas, a Vice Admiral, revealed that the operation was so perfect that those arrested at illegal refining sites were usually low-level operatives with little knowledge of the larger criminal network.
A guest on Sunrise Daily, a breakfast programme on Channels Television, the Naval Chief noted that many of those apprehended during operations are merely workers paid small sums, adding that such a complex structure of oil theft syndicates made it difficult to identify and prosecute the individuals who orchestrate the criminal enterprise.
“Most of the faces behind these thefts are not really known or are not the ones we always catch. The ones we get at most of the illegal refinery sites are just being given some paltry sum, while the big masquerades are the ones that make the real money. Prosecuting suspects is often complicated by the fact that many of those arrested have little or no information about the people directing the operations.
“In trying to prosecute some of these people that we get, some of them don’t even know who they are working for. So, the network is a very delicate one.
“But despite the challenges the Nigerian Navy and other security agencies are continually refining their strategies to counter the evolving tactics of oil thieves. As they are evolving strategies, we are also evolving new strategies. Like I keep saying, technology is the way forward. With that, we have been able to reduce the level of theft.”
Stating that the adoption of technology-driven surveillance, intelligence gathering and monitoring systems had significantly enhanced efforts to curb crude oil theft and protect critical national assets, he reaffirmed the commitment of the Nigerian Navy to sustaining operations against oil theft, stressing that collaboration among security agencies, stakeholders and host communities remains essential to safeguarding the nation’s oil resources.
The naval boss while assuring that Nigeria’s coastal and riverine communities are relatively safe, said the Nigerian Navy had made significant progress in reducing threats along the coast, particularly illegal oil-related activities and sea robbery.
“As it stands today, I can say that our coastal areas and the riverine areas are relatively safe. While crude oil theft and isolated cases of sea robbery remain areas of concern, the Navy has been largely successful in containing such activities through intensified surveillance and enforcement operations.
Hear him: “What we are contending with mostly there is the issue of crude oil theft and some pockets of sea robbery, which we are able to curtail. There is need for the establishment of a special court dedicated to prosecuting maritime crimes.
“This court will focus exclusively on cases involving crude oil theft and other maritime-related offences, helping to address delays associated with the conventional judicial process. The establishment of such a court would significantly accelerate the dispensation of justice and reduce the burden currently placed on the Navy in maintaining seized vessels and other exhibits pending the conclusion of lengthy court processes.
“If we have that in place, I believe the dispensation of justice will be done much faster and then ease the burden of keeping and maintaining some of the arrested vessels, which will be taken off from us because we spend a lot to maintain those vessels under our custody.”
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