Dangote Releases Sample of Refined Petrol, Says Local Production Will Stabilise Naira

•NNPC raises petrol price to N897 per litre, filling stations sell for N950 and above

•Lokpobiri says FG did not fix N1,000 per litre price for marketers 

•NLC to meet over fresh hike in fuel price

Emmanuel Addeh, Onyebuchi Ezigbo and James Emejo in Abuja, Peter Uzoho and Dike Onwuamaeze in Lagos and James Sowole in Abeokuta

Africa’s richest person, Aliko Dangote yesterday released official samples of petrol from his refinery, assuring that the local sale of the fuel will help  stablise the naira by helping to correct distortions in the value of the local currency compared with the dollar.

Describing the development as historic, Dangote said the refinery located in Lagos will assist in knowing the true consumption of petrol in Nigeria since every loaded truck can be tracked.

Dangote, who spoke during a live programme relayed on Arise Television, THISDAY’s broadcast arm, lauded President Bola Tinubu for all the support to ensure the dream became a reality.

The 650, 000 barrels per day facility is expected to serve the entire Nigerian market as well as  export to the West African Sub-region as well as the global market eventually.

In about the last 28 years, Nigeria has not produced Premium Motor Spirit (PMS), popularly known as petrol after its four official refineries in Port Harcourt, Warri and Kaduna broke down.

Several governments in the past have spent billions of dollars on turnaround maintenance for the refineries but without results. Nigeria spends over $10 billion annually on the importation of petrol for its over 200 million citizens.

Underscoring the importance of the event, Dangote during an interview, stated that since 1974, Nigeria has had fuel scarcity in various degrees, but said that that was about to become a thing of the past.

“It’s a very historic, monumental achievement, which I think I must congratulate the people of Nigeria and the government of President Bola Tinubu for giving us all the support to be where we are today. In the last 28 years we haven’t really had this sort of achievement.

 “You can see that even there are some videos of 1974, where we had fuel queues, and those fuel queues are still here. This will eliminate all fuel queues in Nigeria. This will improve the health of everybody. This will also make sure that there is consistent supply to the market. It will also bring the real demand of PMS.

“ There will be no paper transaction. It will also help to make sure that, you know, it corrects this distortion of the Naira, bring stability to the Naira, bring growth, development and prosperity,” Dangote stated.

Dangote also took time to display samples of petrol and diesel from the new refinery, stressing that it is the first in the country to produce Euro 5 fuels of less than 10ppm, which contain lower sulphur and prolong engine life.

The billionaire businessman stressed that what this means is that it will help the vehicle engines last longer, while the health of people and that of the environment will not be polluted.

“ This is the real thing, Euro 5 diesel, for the first time in the history of Nigeria. We are actually testing for all parameters. Our lab actually is not number two, it’s number one in the world,” he added.

According to Dangote, the imminent release of the product into the Nigerian market will not only ensure stability of the naira, but help to minimise round-tripping.

“This will give a lot of stability for the Naira, where now you remove 40 per cent of the demand for dollars in the market, and that will actually stabilise the market. But that’s not it. As you know, there’s quite a lot of what you call round-tripping, where people now do documentation and the fuel does not come into Nigeria, and this is a fact.

“So right now, as we have this refinery working, it will show the true consumption of Nigeria. We can track every single loaded trucks, and we will try as much as possible to track the loaded ships. Trucks, we can tell you where they are.

“Just like now, in some of the projects that we do, we can tell you exactly the consumption pattern. But that is a discussion for another day. Today’s discussion is just to celebrate and to thank God Almighty for bringing us to this stage of now producing gasoline.

“And I know that a lot of people have not actually believed that we’ll be able to deliver, but we’ve been able to deliver,” he added.

Price of Petrol to be Set after Agreement with FG

Dangote said the price of petrol coming out of his 650,000 barrels per day refinery will be determined through an agreement between his company and the federal government.

The richest man in Africa stated this yesterday at the refinery complex in Ibeju-Lekki, Lagos, where he unveiled a sample of the first refined petrol from the $20 billion facility. .

He said the pricing arrangement was being designed by the Federal Executive Council (FEC) led by President Bola Tinubu, adding that the company was ready to roll out products into the market as soon as that arrangement was finalised.

Dangote stated: “Our petrol can be in filling stations within the next 48 hours depending on NNPC and that the pricing of the petrol would be based on an agreement with the federal government.

“It is an arrangement which is designed and approved by the Federal Executive Council led by His Excellency, President Bola  Tinubu. As soon as it is finalised, which he (Tinubu) is pushing, once we finish with NNPC, it can be today, it can be tomorrow, we are ready to roll into the market.

”Nigerians would have good petrol while the engines of your vehicles will last longer. You will not be having an engine issue, which a lot of us were having. It won’t happen at all.”

He further emphasised that the quality of petroleum products from his refinery will match that of any refinery in the world, and the United States of America (USA).

NMDPRA: Initial 25m Litres Set for Release in September

Also yesterday, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)  said the refinery will release an initial 25 million litres into the market this month.

In a message on its X handle, the organisation added that refining will be further ramped up in October to 30 million litres, explaining that it met with the Nigerian National Petroleum Company Limited (NNPC) to agree on local crude supply to the Lagos-based refinery.

“At the NMDPRA headquarters in Abuja, NNPC reached an agreement to commence crude oil sale and supply to Dangote Refinery in local currency.

“The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September. And will subsequently increase this amount to 30 million litres daily from October 2024,” the NMDPRA said.

NNPC Raises Petrol Price to N897 Per Litre, Filling Stations Sell for N950

In a move that could further compound the hardship faced by Nigerians, the NNPC yesterday raised the pump price of petrol to N897 per litre from the official price of N617.

This is coming days after the national oil company said it was heavily constrained by the huge debt it owes international suppliers. The debt is estimated to be $6.8 billion.

THISDAY observed that many NNPC filling stations in Abuja had already effected the prices, with its downstream facilities selling for N897. Eterna in Wuse 2 was dispensing at N930 per litre with extended queues.

Total Energies in zone 3 were not selling, while Conoil was selling for N940 and NIPCO was dispensing for N955 when THISDAY visited .

In Port Harcourt, the product was selling for between N950 & N1,500, although many of the filling stations were not dispensing, while in Owerri, Imo State , marketers were deployed for between N990 and N1,000.

NNPC was selling for N897 in Maiduguri while other filling stations sold for between N1000 to N1,500. In Anambra, the prices ranged from between N960 and N980, while in Yola, it was retailing for N970 per litre.

In Jalingo, Taraba State, fuel was sold for N980 per litre,  while in  Ibadan,Oyo State, the few stations that were open sold for between N1000 and N1200

A separate signal to depot owners sighted by THISDAY confirmed the increase.

“This is to inform you that NNPC Retail Management has approved upward review of PMS pump price from N617/litre to N897/litre effective today, 3rd September, 2024.

“Please ensure all your pumps and totems (price boards)/MIDs reflect the new PMS price of N897/litre,” the message said.

Lokpobiri Denies Ordering Sale of Petrol at N1,000

The Minister of State, Petroleum (Oil) has also refuted information circulated on social media, which claimed that he directed the NNPC to inflate petroleum prices to N1,000 above the approved pump price.

“We categorically condemn these claims as baseless, malicious, and a deliberate attempt to incite public discontent. We challenge anyone in possession of any evidence-be it written documents, audio, or video recordings that support these fabrications to make it public. Such a claim is entirely devoid of truth and should be recognized as an intentional effort to mislead the public.

“It must be stressed that NNPC operates as an independent entity under the Companies and Allied Matters Act (CAMA), with a fully empowered Board of Directors. The Ministry of Petroleum Resources does not, and will not, interfere in the internal decisions of NNPC, including pricing matters.

“Any suggestion otherwise is not only incorrect but also reveals a profound misunderstanding of the deregulated nature of Nigeria’s petroleum sector,” a statement signed by the minister’s spokesperson  Nneamaka Okafor, stated.

It advised  that the minister cannot, and does not, direct NNPC or any other entity within the sector to manipulate prices.

NECA: New Pump Price Will Make Nigerians Pay for NNPC’s Inefficiency

The Nigeria Employer’s Consultative Association (NECA) has described the new petrol pump price that was announced yesterday as making Nigerians to pay for the crass inefficiency of the NNPC.

The Director General of NECA, Mr. Adewale-Smatt Oyerinde, told THISDAY yesterday that the new pump price of petrol is not only worrisome but also unfair.

Oyerinde said that NECA had expected that the federal government would have leveraged on the momentum created by the completion of the Dangote Refinery and the planned commencement of operation of the Port Harcourt refinery to clear the obvious self-inflicted pain on Nigerians and progressively reduce the pump price of petrol.

He said: “This new pump price could be seen as making Nigerians to pay for the crass inefficiency in the NNPC.

“Rather than address the fundamentals that have made Nigeria a net importer of petrol, even when we have four refineries, government continues to inflict pain on Nigerians and inadvertently, contributing to the increase in cost of doing business.

“We urge the government to have a rethink and do all that is necessary to address the continuous impoverishment of Nigerians and incapacitation of organised businesses.”

Oyedele: Inefficiencies May Inhibit Sale of Cheap Fuel

The Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Mr. Taiwo Oyedele, has said the resuscitation of the country’s ailing refineries may not deliver petrol at cheaper costs to Nigerians or alleviate the current economic hardship resulting from the recent removal of subsidy.

He said even if crude oil was refined in the country, the operational inefficiencies often associated with the management of the refineries will make Nigeria’s petrol the most expensive in the world.

Oyedele spoke at the Platform NG 2023 event in Lagos.

He said unless it is effectively addressed, inefficiency in the operation of the refineries could make Nigerians change their minds towards having functional refineries for local refining.

Citing National Assembly sources, he said the country had spent over N10 trillion to maintain the moribund refineries without producing anything.

Oyedele said: “Nigerians who say if only our refineries are working, they would be fine; nothing can be farther from the truth than that. In fact, Nigerians should come together and say please make sure that our refineries don’t work. We should sell them.

“Maybe you have not been following this story – the National Assembly said we have spent over N10 trillion maintaining our refineries even when they have not produced anything.

 “The time when they were producing, the GMD of NNPC at the time, who is now the CEO of NNPC Limited, said and I quote, ‘We have to shut down the ones that we’re producing because the took crude of $100 and produced refined product of $97’.

“And I have not added the overhead. My point is if Nigerian refineries produce crude oil, unless we deal with our inefficiency, one litre of petrol will be the most expensive in the world. You would have succeeded in replacing the subsidy at the pump with the subsidy at the refineries.”

The presidential committee chairman also said the removal of fuel subsidy had been a painful sacrifice that Nigerians have had to make as life has become impossible.

He said though the policy was necessary, the government needed to “react and respond in a way that is robust enough so we can take some of that pain off our people”.

He insisted that “every single naira we save” from subsidies should be “spent on the people 100 per cent”.

He argued that rather than target the upper-class, government’s interventions should focus on the lower middle-class particularly the vulcanizers, mechanics and apprentices among others – who have been hard-hit by government’s policies and unable to support their families at this critical time.

Oyedele said interventions should be directed to areas where they could make the most impact on the vulnerable people. He said quality data mining was particularly key to achieving positive outcomes.

Abiodun: Refinery Will Boost Nigeria’s Economy

Ogun State Governor, Dapo Abiodun yesterday said the commencement of petrol production by the Dangote refinery will strengthen the nation’s economy by eliminating constant shortages and conserving foreign exchange.

Abiodun, in a statement signed by his Chief Press Secretary, Lekan Adeniran, said that with the refinery coming on stream, one of the most significant challenges faced by Nigeria for more than three decades—reliance on fuel importation—will be solved.

According to the statement, with the Warri and Port Harcourt refineries also being prepared to begin production, Nigerians will heave a sigh of relief from constant fuel shortages while the economy will also receive a boost.

He praised Alhaji Aliko Dangote for his determination in seeing through the multi-billion dollar projects against all odds.

He said: “This significant achievement marks a transformative milestone not only for you as an entrepreneur but also for Nigeria and the broader African continent.

“The establishment of this refinery represents a pivotal shift in the energy landscape of the region, showcasing the power of vision, resilience, and unwavering commitment to economic development.

“The Dangote refinery is poised to be a game-changer in the production of petrol, addressing one of the most pressing challenges faced by Nigeria: reliance on imported fuel. This dependency has not only strained our foreign exchange reserves but has also hindered our potential for self-sufficiency.

“By producing petrol locally, the refinery will drastically reduce the outflow of foreign currency, thereby strengthening our economy. This move aligns perfectly with the President Bola Tinubu-led administration’s efforts to achieve economic diversification and reduce reliance on oil exports alone.”

Prioritise Patriotism Above Profit, PDP Chieftain Begs Dangote

As Dangote Refinery begins supply of petroleum to the country this month, a chieftain of the Peoples Democratic Party (PDP), Ogun State,  Segun Showunmi has begged the industrialist and owner of the refinery, Dangote to prioritise patriotism and nationalism above profit.

Showunmi in a statement said Nigerians have suffered a lot and bore great burden of having to pay heavily for a litre of fuel.

Pleading with the industrialist to be moderate with the pricing, Showunmi said that the act of selfless love for the people which runs in the family of Dangote must reflect in the way and manner the petroleum products from his refinery are sold to the people.

The Abeokuta-born politician described Dangote as a great gift to Africa hailing him for doing so much especially, in the area of investment and employment creation, to redeem the pride of the Black race.

NLC to Meet Over Fresh Hike in Fuel Price

The Nigeria Labour Congress (NLC) has said that it will convene a meeting of its organs in the coming days to respond the new hike in pump price of petrol.

In a statement signed by the NLC President Joe Ajaero yesterday evening, the labour movement said the action of the federal government was a betrayal.

He said: “We  are filled with a deep sense of betrayal as the federal government clandestinely increases the pump price of PMS. One of the reasons for accepting N70,000 as national minimum wage was the understanding that the pump price of PMS would not be increased even as we knew that N70,000 was not sufficient.

‘We recall vividly when Mr President  gave us  the devil’s alternatives to choose from: Either N250,000 as minimum wage  (subject to the rise of the pump price between N1,500 and N2,000) and N70,000 (at old PMS rates), we opted for the latter because we could not bring ourselves to accept further punishment on Nigerians.

“But here we are, barely one month after and with  government yet to commence payment of the new national minimum wage, confronted by a reality  we cannot explain.”

He described the ditsy as both traumatic and nightmarish, but said the union was guided by its belief in the country and the need to secure and sustain its sovereignty, integrity and welfare of the people.

“In the  coming days, the appropriate organs  of the  congress will be meeting to take appropriate decisions which will be made public,” he said.