Daud Olatunji
The 16th Emir of Kano, Muhammadu Sanusi II, has delivered a scathing critique of the Nigeria National Petroleum Corporation Limited (NNPCL), urging the entity to rectify its failures before making public statements.
This comes in response to recent claims made by NNPCL regarding the monopoly of Dangote’s refinery and the broader issue of energy security in Nigeria.
Sanusi stressed that NNPCL has forfeited its credibility due to its long-standing inefficiencies and corruption.
“Keeping quiet is the honourable option for NNPCL,” Sanusi declared. “It has lost the right to talk until it fixes the mess it threw the country into.”
Addressing NNPCL’s argument that relying on a single refinery undermines energy security, Sanusi retorted, “This is most laughable. On the contrary, relying on a local refinery is far more secure than these imports.”
He criticised NNPCL for squandering billions of dollars on turnaround maintenance for four refineries that have failed to produce any product.
Sanusi implied that this negligence was intentional, driven by the profitability of rent extraction under the guise of subsidies.
“If NNPCL activated its refineries, there would be no monopoly. Then, we can see the sulphur content of its products and compare them to Dangote’s,” Sanusi asserted.
He further stated, “Until then, keeping quiet is the honourable option for it. NNPC and its spinoffs have lost any right to talk until they fix the mess they have thrown us into.”
Sanusi highlighted the potential benefits of the Dangote refinery, arguing that any gaps in local supply could be met through imports.
He accused NNPCL of clinging to a lucrative subsidy scam and expressed doubt that they would willingly end it.
Sanusi praised Alhaji Aliko Dangote for his contributions to Nigeria’s economy, stating, “If we do not thank Dangote for what he has done as an African to deal a hammer blow to multinationals and the rentier system and for structural change in this economy through value added in various sectors, we should not condemn him.”
He criticised the spread of unfounded stories about Dangote receiving favorable taxation, stressing that no one has provided evidence of such claims.
“We tend to repeat stories without evidence. We hear about Dangote getting favourable taxation but no one has said what this tax is, if he got it alone or if it was offered to a sector or to pioneers, and if such a practice is in fact normal to encourage investment.”
Sanusi concluded by urging Nigerians to support entrepreneurs like Dangote rather than undermining them.
“Instead of killing Dangote, we should try and make more like him. Nigeria always kills its heroes and its best because of envy and pettiness.”
Addressing concerns over the exchange rates at which Dangote purchased dollars for his refinery, Sanusi clarified that Dangote bought dollars at the rates set by the Central Bank of Nigeria (CBN), just like any other enterprise at the time.
He emphasized that Dangote should not be blamed for buying dollars at lower rates, as those rates were determined by the apex bank.
Sanusi remarked, “Aliko Dangote did not fix the price at which the CBN sold dollars. Everyone who got dollars from the CBN got dollars at the same rate if they bought on the same day. So we cannot blame him for buying dollars at a rate the CBN itself decided to sell to its customers.”
Sanusi underscored the significance of prioritizing forex allocation to impactful projects like the Dangote refinery.
“Consider the drain on our forex from importing petroleum products; the tens of billions of dollars of forex spent abroad; the huge losses due to theft in the name of subsidy.”
He posed critical questions about the forex policies and allocations, contrasting the forex used by Dangote for his refinery with that taken by NNPC for its ineffective refinery operations.
“If any Nigerian came to me as a Central Bank Governor with a project like this refinery, I would recognize immediately its potential impact on the economy and give it all the support needed.”
Sanusi called for a rational approach to forex policies, prioritising projects with significant economic impact.
“To my mind, giving dollars for the construction of a refinery is better than rice importers and, indeed, almost every other enterprise apart from education and health, given the impact on the macro.”
…FG Snubs Our Refinery, To Exports Crude Oil To Indonesia – Dangote
Meanwhile ,the Nigerian government has opted to export crude oil to Indonesia while neglecting the domestic Dangote Refinery, according to Rabiu Umar, Group Chief Commercial Officer at Dangote Industries Limited.
In an interview with Channels Television on Monday, Umar criticised the government’s decision to export crude oil and import finished products from Indonesia, despite the 650,000 barrels per day capacity of the Dangote Refinery, which is struggling to secure adequate crude oil supply locally.
“Whilst we are going to import cargoes abroad, most of the cargo from Nigeria is sold to Indonesia.
“ So the question is, does it make sense to take cargo from Nigeria to sell to Indonesia and then you are also importing the same finished product to Nigeria? It does not make sense to me,” Umar remarked.
He emphasised the need for improved crude oil supply to domestic refineries and confirmed that the Dangote Refinery is set to commence the domestic supply of fuel in August 2024.
This development arises amidst recent tensions between Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over allegations of substandard products. Last week, NMDPRA CEO Farouk Ahmed labeled Dangote products as inferior.
However, Rabiu Umar and Aliko Dangote, the owner of the refinery, have both refuted these claims, asserting that Dangote Refinery products are of world-class quality.
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