PDP Chieftain Faults NNPC’s Middleman Role Between Dangote, Oil Marketers

Sylvester Idowu in Warri

A Chieftain of the Peoples Democratic Party (PDP), Chief Sunny Onuesoke, has criticised the role of Nigeria National Petroleum Company Limited (NNPC) as a middleman in the supply chain of petroleum products from Dangote  Refinery to marketers.

The former Delta State gubernatorial aspirant of the party made the statement  yesterday in response to the fuel pump price released by NNPC for Dangote Refinery products.

He expressed his expectation that Dangote Refinery should sell petroleum products directly to major or independent marketers without NNPC’s involvement.

Onuesoke, who is chairman of DAS Energy Services Limited, Udu near Warri, stated that the interference of NNPC in the supply chain of Dangote Refinery products would inevitably contribute to price increases in the country.

He recalled that NNPC has been operational for the past 20 years without producing fuel.

Onuesoke added that it was disheartening that the same organisation, whose refineries cannot produce fuel, is now interfering in how an independent refinery sells its products to marketers.

Consequently, he called on the federal government to sack the Managing Director of NNPC, Mr. Mele Kyari, and reorganise the company due to its inefficiency in fulfilling its role for the benefit of Nigerians.

“The only organisation in Nigeria that is practically invisible is the NNPC. Is it wrong for Dangote to establish a refinery and sell petroleum products directly to major or independent marketers without NNPC acting as a middleman?

“What value does NNPC add by becoming a middleman between Dangote Refinery and major marketers? NNPC has been functioning for over 20 years without producing oil. We want to know what NNPC’s role is in a privately owned refinery like Dangote’s.

“Why are they insisting that Dangote Refinery sells its products through them to marketers?” he questioned.

Onuesoke argued that in developed countries, refineries sell directly to marketers, unlike in Nigeria, where refineries sell to NNPC.

“For instance, in the United States, marketers buy directly from Total Oil, which pumps directly to their filling stations for end users. Why is NNPC interfering in Nigeria? How can NNPC, which cannot manage its own refineries, act as a middleman to profit from others’ efforts?

“They buy from Dangote and sell to Independent Petroleum Marketers Association of Nigeria (IPMAN) or major marketers to make a profit from something they didn’t contribute to. It’s appalling,” he concluded.