With Unveiling of Petrol Sample, Dangote Rekindles Hope

By Keem Abdul

It couldn’t have come at a more auspicious time.

Like an oasis in a parched desert, the unveiling by Alhaji Aliko Dangote, Africa’s richest man and President of the Dangote Group, of samples of the Dangote Refinery’s premium motor spirit (PMS) and diesel products on Tuesday, September 3, 2024, will stand as one of the most heartwarming events in a some of the most challenging months for the majority of Nigerians. After almost three decades of relying on imported refined petroleum products (despite its status as the world’s sixth largest, and Africa’s largest, oil producer) the prospect of once again consuming locally-refined petroleum products such as petrol and deisel – at a more affordable rate than is currently the case – is sure to fill Nigerians with renewed hope, especially coming on the heels of the latest of many astronomical pump price increases with have left Nigerians desperate, despondent and gasping for air.

During the presentation of the sample at his $20 billion refinery complex in Ibeju-Lekki, Lagos, Dangote made the confident assertion that, with this develoment, his facility was set to “eliminate all fuel queues in Nigeria”. It is expected that upon full operations, the refinery will ensure consistent supply of petrol, not just to the Nigerian market, but also to the West African sub-region and beyond.

The business tycoon said his refinery’s petrol and diesel output underwent a series of laboratory tests to ensure that their sulphur content meets global standards, among other indices of quality. “This is the real thing,” he exulted. (“We’re refining) Euro 5 diesel for the first time in the history of Nigeria. We are actually testing for all parameters. Our lab is … number one in the world.” For the record, Euro 5 petroleum products typically contain lower sulphur and prolong engine life, while also shielding the health of the people and the environment from pollution and other hazards.

Speaking on the ripple effects of this historic development on the larger political economy, the billionaire businessman said that the imminent release of the product in commercial quantities into the Nigerian market will not only ensure the stability of the Naira, but will help to minimize the round-tripping of the currency, thereby bringing economic growth, development and prosperity to the country.

He used the opportunity of the presentation to salute the people of Nigeria for their resilience and goodwill towards the Dangote Group. In particular, he hailed the government of President Bola Ahmed Tinubu for giving his organization the platform for growth, development, and prosperity. Dangote singled out the President for praise, for creating the right environment without which this development would have been impossible.

Dangote’s giant stride is indeed transformative, and a breath of fresh air, when set against the sordid experience the Nigerian people have gone through for the past 28 years, during which period the country failed to produce the Premium Motor Spirit (PMS), popularly known as petrol, following the breakdown of not one, not two, not three, but ALL FOUR of its official refineries in Port Harcourt, Warri and Kaduna. During these proverbial ‘locust’ years, successive administrations spent billions of dollars on so-called ‘turnaround maintenance’ efforts, ostensibly to revive these refineries – all to no avail. The result was that Nigeria found itself spending over $10 billion annually on the importation of petrol for its over 200 million citizens.

But even as Nigerans rightly celebrate the potential relief promised by Dangote’s locally-refined fuel, they will do well to remind themselves that it is not yet uhuru – as regulatory bottlenecks may still stand in the way of the full consummation of this triumph. During Tuesday’s presentation, Dangote had also disclosed that the price of his product would be determined through an agreement between the Dangote Group and the federal government – with the government’s giant oil agency, the Nigerian National Petroleum Company Limited (NNPCL) set to be the sole direct buyer of the new products, adding that the company was ready to roll out products into the market (even as soon as the next 48 hours) as soon as that arrangement was finalized.

Coming after the decision by the same NNPCL, only a few days ago, to increase the pump price of petrol to N897 per litre from the official price of N617 (with the Minister of State for Petroleum Resources, Senator Heineken Lokpobiri having to refute reports that his ministry ordered the NNPCL to inflate prices to as high as N1,000), this disclosure is bound to give many Nigerians cause for pause – even though, on the face of it, there is much to be said in favour of the arrangement. After all, if the Dangote refinery exclusively supplies NNPC, it would significantly lower importation and logistics costs, and allow local marketers to purchase petrol from NNPC at a much reduced price, as well as addressing the persistent fuel scarcity that has plagued the country for so long.

But, as every Nigerian knows, the record of government ministries, departments and agencies when it comes to the management of national assets and deploying them for the public good has not been an exactly stellar one. One may even argue that the NNPC (as it was before its recent metamorphosis into a limited liability company) has been more of the cause of, than a solution to, some of the country’s perennial energy woes.

This, however, is where transformative leadership comes in; a leadership determined to rewrite the narrative and turn the page on a chapter defined by years of inefficiency and bureaucratic lethargy and onto a new chapter defined by progress, positive change and … yes, renewed hope. Recall that in June this year, President Tinubu approved the sale of crude oil to the Dangote Refinery – IN NAIRA, a deliberate move geared towards crashing the prices of domestically-refined petroleum products. In his reaction at the time, Dangote said the President’s action helped reduce the demand for foreign exchange by 40% – thereby giving energy to renewed, naira-driven growth. Tinubu’s move was in perfect alignment with his admiistration’s efforts to achieve economic diversification and reduce our country’s over-dependence on imported goods – including refined petroleum products – which is a major plank of his policy reforms.

All in all, it can be said that Dangote’s latest accomplishment – coupled with President Tinubu’s strong backing – represents a pivotal shift in Nigeria’s energy landscape, and showcases the power of vision, resilience and unwavering commitment to Nigeria’s economic revival. It is poised to be a game-changer in the production of petrol, as it addresses one of the most pressing – and poignant – challenges faced by the Nigerian economy.

• Keem Abdul, publisher and writer, hails from Lagos. He can be reached via +2348038795377 or Akeemabdul2023@gmail.com