Tinubu, Dangote Refinery And Mele Kyari’s Sack
RingTrue with Yemi Adebowale, April 2, 2025. yemiadebowale@yahoo.com; 08054699539 (text only)
The Dangote Refinery crashed the price of petrol multiple times between December 2024 and March 2025.
Then, the big one came early in March when it crashed the price to N860 per litre (Lagos) and to between N870 and N890 in other parts of Nigeria, forcing its major competitor, the Nigerian National Petroleum Company Limited to do the same.
The Nigerian economy swiftly responded positively. Inflation went down a bit.
The prices of some food and some manufactured products subsequently went down a bit too. Households became a bit relieved.
Then, suddenly, the NNPCL early in March announced the end of the naira-for-crude deal it has with the Dangote Petroleum Refinery.
Meaning that the refinery must start buying Nigerian crude oil in US Dollars.
It was a sledgehammer. Dangote had to halt its crashing of petrol price on March 19.
It said there was a mismatch between its sales proceeds and its crude oil purchase obligations, “currently denominated in US dollars,” and adding, “to date, our sales of petroleum products in naira have exceeded the value of naira-denominated crude that we have received.
“As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.”
An increase followed. All the gains of the price crash came crashing down.
As at press time, petrol was selling for N970 per litre in some places in Lagos and over N1000 per liter in some places in the far North.
Even, when the naira-for-crude deal was on, the hopeless NNPC did not deliver fully to Dangote.
There was no month it supplied the agreed quantity under the deal. Dangote complements with imported crude to keep the refinery running.
I can authoritatively confirm that no significant progress has been made in Dangote’s talks with the federal government/NNPCL on a new naira-for-crude agreement.
As a result, there is anxiety in the downstream arm of the petroleum sector, leading to further hike in the price of petrol.
It may hit N1,000/litre in Lagos in a matter of days if nothing is done about signing a new naira-for-crude deal.
The mafia behind the importation of petroleum products is responsible for the reluctance of the federal government to renew the naira-for-crude deal with the Dangote Refinery.
This is the truth that must be told. The numerous crashes of the price of petrol by Dangote suffocated them.
They lost huge amount because they were importing in US Dollars.
It is very sad to note that the Nigerian government, under Tinubu, is still issuing license for the importation of petroleum products notwithstanding Dangote’s capacity to supply all that is required in Nigeria.
Importation authorization is still being issued after telling us that NNPCL’s Port Harcourt and Warri refineries had resumed production.
Between October 2024 and January 31 2025, NNPC and a number of oil marketers spent over N5.5 trillion on the importation of petroleum products.
What a country! Citizens must be suffocated because of this petrol importation Mafia.
The Mafia is fighting back and making progress against Dangote.
The only way the petrol importation Mafia can make good profit is to force Dangote Refinery to sell at the price they are vending.
And the only way this can be achieved is to end NNPCL’s naira-for-crude deal with Dangote.
Where is President Bola Tinubu in all of these? A naira-for-crude deal that has helped Dangote refinery to improve the supply of petroleum products to Nigerians is under threat.
A refinery that has saved this country millions of Dollars that would have gone into petroleum products importation is repeatedly threatened by the petrol Mafia while government is standing hands akimbo and tacitly supporting them.
A refinery that has helped to reduce the pump prices of petroleum products is repeatedly pummeled by government regulators and the NNPC. What a tragedy!
Dangote Refinery is still not getting maximum support from the Tinubu government.
So sad! A firm that employs thousands of workers is not enjoying maximum protection from government.
Thousands of indirect jobs have also been created for Nigerians by the refinery.
It is depressing that government is still releasing huge forex for the importation of products that are available locally.
Local refining capacity can meet domestic needs, but many in government care less.
These people want Nigeria to remain a dumping ground for foreign petroleum products.
No accountable government should be working towards the failure of a $20 billion firm; a firm adding considerable value to our economy.
The contribution to the economy is massive. The plan is to cripple Dangote Refinery.
But just as Aliko Dangote once said, “they should be prepared for a big fight.”
But where is Tinubu, the petroleum minister in all of these shenanigans?
The story in town is that he is backing the petrol importation Mafia.
I sincerely hope this is not true. Our President must be seen checking the NNPCL, government regulators and other government officials promoting the Petrol Mafia.
I have not seen these in full force since Dangote commenced operation.
Tinubu must be seen protecting Dangote Refinery.
As a first step, let him swiftly direct the immediate renewal of the naira-for-crude deal.
This is the way forward for our country.
On the flip side, the powerful Mele Kyari was finally removed as the head of NNPCL on Wednesday.
I was one of those that believed Kyari will remain in office till eternity because of his contributions to Tinubu’s election.
Good riddance to bad rubbish. Kyari brazenly implemented the selfish agenda of the Mafia controlling NNPCL.
Of course, he also took good care of himself.
Kyari also implemented imprudent Tinubu’s agenda, just as he did for former President Muhammadu Buhari.
So, I will blame Tinubu for all the failings of the NNPCL under Kyari.
If Nigeria wants an NNPCL that will deliver like the likes of Brazil’s Petrobas, it must be freed from all encumbrances. Tinubu can make this happen if he truly wants to.
(vitalnewsngr.com)
