Mele Kolo Kyari

By Usman Abdullahi Koli, ANIPR 

Experts say that the newly established Dangote Refinery might address Nigeria’s energy crisis, but this legacy project is finding its footing in navigating the rigours of International Oil Companies (IOCs). Not only this, but government strategy policy greatly affects operations in the business space. The refinery is facing a fresh challenge from regulatory bodies in Nigeria, which may make or mar its success.

The $19 billion Dangote Refinery project has ignited a fierce debate between the Nigerian National Petroleum Corporation Limited (NNPC) and Aliko Dangote – Africa’s richest man. This flagship project, poised to be the largest single-train refinery in the world, has the potential to transform Nigeria’s economy and reshape the continent’s energy landscape. 

Yet, the dispute between NNPC and Dangote threatens to derail this vision. Can Nigeria find a harmonious balance between private sector efficiency and public sector oversight, unlocking the full potential of this game-changing project?

Aliko Dangote’s vision for the refinery is to reduce Nigeria’s dependency on imported refined petroleum products, saving the country billions in foreign exchange. He emphasises the need for private sector management to ensure efficiency and accountability, citing historical inefficiencies in government-run enterprises. Dangote seeks assurances that his substantial investment will yield returns, expressing concerns about potential government interference that could jeopardise profitability.

On the other hand, the NNPC maintains that it must have a significant role in the refinery to safeguard national interests. The corporation argues that state involvement is crucial to ensure that the refinery’s output aligns with national energy policies and goals. NNPC also emphasises the need for regulatory oversight to prevent monopolistic practices and ensure that prices of refined products remain affordable for Nigerians.

According to Mele Kyari, NNPC’s Group Managing Director, “Our involvement in the Dangote Refinery is to ensure that the project aligns with national interests and that the country benefits maximally from the investment.” Aliko Dangote, however, believes that “private sector efficiency is key to the success of the refinery, and government interference could hinder its progress.”

Dangote might be jittery about the government’s ineffectiveness in running similar assets. His fears would be that he who failed to turn around his refinery successfully wanted a front seat and, perhaps, direction. The business mogul’s aims surpassed the government’s fight against it after the allegations of monopoly attempts by the government. 

Dangote said his friend, who warned him against investing in Nigeria, now mocks him. He was ready to be bought out by the government when the regulatory body said that the refinery’s output was inferior to imported products. This statement ignited reactions from netizens.

The dispute highlights the tension between private enterprise and state control in critical sectors. Both sides present valid arguments that merit consideration. Balancing economic independence with national control, operational efficiency with public accountability, and investment security with public interest is essential to harness the benefits of both approaches.

As the saying goes, “Too many cooks can spoil the broth,” but in this case, finding a harmonious balance is key to ensuring the refinery’s success and, ultimately, Nigeria’s economic stability. Efficiency must be paired with accountability for any project to succeed, and this wisdom applies aptly to the current NNPC-Dangote situation.

Transparency and mutual respect are the pillars upon which this partnership should rest. By acknowledging the strengths and concerns of both parties, Nigeria can move towards a solution that advances the Dangote Refinery project while ensuring sustainable and inclusive growth for the nation.

In the words of Aliko Dangote, “The success of the refinery is paramount for Nigeria’s economic stability.” Mele Kyari also notes, “Our goal is to ensure that the refinery serves the national interest while also providing returns on investment.” Ultimately, the NNPC-Dangote dispute underscores the complexities of managing critical national assets. By finding a middle ground that balances private sector efficiency with public sector oversight, Nigeria can unlock the full potential of the Dangote Refinery and secure a brighter energy future for generations to come.

The path forward lies in a collaborative effort where the private and public sectors work together. If handled with care and foresight, this partnership can transform Nigeria’s energy landscape and set a benchmark for future endeavours. The Dangote Refinery has the potential to be a game-changer, and it is in the best interest of all Nigerians to see it succeed.

Usman Abdullahi Koli wrote via mernoukoli@gmail.com.

By Ahmad Deedat Zakari

Hours after meeting President Muhammad Buhari, GCFR at the State House, Abuja, the outgoing Secretary General of the Organization of Petroleum Exporting Countries (OPEC), Muhammad Sanusi Barkindo has passed away.

Mele Kyari, the NNPC GMD, announced Barkindo’s demise in the early hours of Wednesday .

“We lost our esteemed Dr Muhammad Sanusi Barkindo. He died at about 11pm yesterday 5th July 2022. Certainly a great loss to his immediate family, the NNPC, our country Nigeria, the OPEC and the global energy community. Burial arrangements will be announced shortly.” Mr Kyari tweeted.

Barkindo who was received by President Muhammadu Buhari at the State House on Tuesday died at the age of 63. The president had described him as a worthy ambassador of Nigeria during Barkindo’s visit to the State House

Barkindo was appointed as OPEC Secretary General in 2016 and his tenure comes to an end on July 31.

By Farid Suleiman

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has revealed that from January to date, Nigeria has lost a total of N623BN worth of crude oil to the activities of oil vandals and operators of illegal refineries.

Reports indicate that the GMD  made the revelation when he appeared before the House of Representative committee on petroleum (upstream) that invited him to ascertain the cause of Nigeria’s low crude oil output.

Kyari said oil thieves steal an average of 250,000 barrels per day. This situation has limited Nigeria’s crude oil output to only 1.49 million barrels per day, against its OPEC quota of 1.753 million barrels per day.

“What is going on has nothing to do with the PIA. It is purely an act of thieves; acts of vandals which have rendered the industry unworkable and taken us to the level where today, our production is around 1.49 million barrels per day.”

“When you lose about 200,000 barrels per day, even at an average price of 65 dollars per barrel, we lost close to 1 billion dollars between January and March. 

“From January to date, we lost an average of 250,000 barrels per day, and at the current price of about 100 dollars to the barrel, even within this short period, we have lost close to 1.5 billion dollars.

“This situation deteriorated to the extent that by March 7, 2022, it came to zero, and so, we shut down the line and declared force majeure. Even on our most reliable pipeline, which is the Forcados pipeline, we still lose about 7000 barrels per day. Needless to say that this is all coming as a result of the acts of vandals and oil thieves,” he said.

However, the GMB assured the lawmakers that massive joint security operations among agencies were ongoing to address the situation.

By Uzair Adam Imam

The Coalition of Concerned Northern Forum (CCNF)  has threatened to occupy all NNPC zonal offices and its subsidiaries if the current persistent issue of fuel scarcity is not being solved.

The group has also called on the NNPC’s Group Managing Director, Mele Kolo Kyari and Engr. Farouk Ahmed, the Chief Executive Officer of Nigeria Midstream and Downstream Petroleum Regulatory Authority (MDPRA), to resign.

They added that these people should tender their resignation within 72 hours over the persistent fuel scarcity in the country and their inability to solve the issue.

A statement jointly signed by the group’s chairman and the spokesman, Mallam Ibrahim Bature and Comrade Abdulsalam Moh’d Kazeem, respectively, disclosed.

The group also demanded that the NNPC management should make public genuine and comprehensive names of those involved in the current scarcity of petroleum products all over the country.

The statement reads: “if our demands are not met in the next three (3) working days, we shall occupy all NNPC zonal offices and its subsidiaries across our region and the Federal Capital Territory (FCT).

“The mistake made by NNPC under the current management has caused us a lot as a nation; for instance, they claimed it will cost our nation over N200 billion to mop up and sanitize the adulterated fuel, and at the same time, we don’t have enough facilities, so they will have to evacuate the bad products first before we can have access to the new products.

“As at today, the said products have already damaged many automobiles, generators, machines and other sundry equipment of citizenry nationwide.”