NNPC

By Abdullahi Mukhtar Algasgaini

Importers of petroleum products are expressing concerns over the continuous lowering of petrol prices by the Dangote Refinery, which they claim could force them to sell at a loss.

As consumers flock to outlets offering the lowest prices, dealers fear they may be forced out of the market.

On Wednesday, the Dangote refinery announced a N65 reduction in the ex-depot (gantry) price of petrol after lowering it from N890 to N825 per litre.

The price cut, effective from February 27, marks the second price drop of the year and the third adjustment in just two months.

Importers have voiced their concerns that the latest price cuts are making it less appealing to import petroleum products.

The cost of landing Premium Motor Spirit (PMS) reached about N927 per litre last week, higher than Dangote’s ex-depot price, leaving importers with little to no profit margin.

A dealer mentioned, “Some of us who have imported PMS are feeling the heat of Dangote’s decision to slash prices. Though it’s good to reduce petrol prices, it’s taking a toll on our business.”

Another dealer believes that Dangote’s price cuts aim to deter fuel imports, stating, “This latest reduction will discourage fuel imports. Some of us will have to source our products locally.”

Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, acknowledged the potential financial losses for importers.

He commended Dangote’s efforts, noting that the refinery’s price cuts could push importers out of business.

Ukadike also emphasized the need for improved distribution infrastructure to further reduce prices and enhance supply across Nigeria.

Despite the challenges, Ukadike reaffirmed the support of independent marketers for Dangote’s refinery, praising the development of the 650,000 single-train refinery in Nigeria and the removal of fuel subsidies.

He stated that his association will continue to purchase products from Dangote as long as prices remain competitive.

By Muhsin Ibrahim

The Nigerian National Petroleum Company (NNPC) Ltd has rejected allegations from a viral video suggesting that its fuel products are substandard. NNPC called the claims false and based on unverified amateur research.

The company stressed that its fuel is formulated for optimal performance and that a significant portion of Premium Motor Spirit (PMS) sold in Lagos is sourced from the Dangote Refinery, which meets strict quality standards.

NNPC described the video’s spreading as a tactic by “economic saboteurs” to misinform the public and harm its reputation.

The company plans to take legal action against those disseminating false information and urges Nigerians to rely on verified sources for accurate updates.

By Abdullahi Mukhtar Algasgaini

President Bola Ahmed Tinubu is reportedly making significant changes at the helm of the Nigerian National Petroleum Company Limited (NNPCL). Plans are underway to replace the current Group Chief Executive Officer, Mele Kyari, with Bayo Ojulari, a former Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo).

In addition to this change, Ahmadu Musa Kida, a seasoned oil and gas professional and former Deputy Managing Director of Total Oil, is set to take over as the new Chairman of the NNPC Board. This move will see Chief Pius Akinyelure, who has been in the position since 2023, stepping down.

According to reports, Kyari will remain in office until March 1, after which Roland Ewubare, who had previously resigned amid reports of disagreements with Kyari, will assume the role of Group Chief Operating Officer.

Ojulari, who has vast experience in the oil and gas sector, has held leadership positions across Nigeria, Europe, and the Middle East. He led SNEPCo from 2015 to 2021. Kida, on the other hand, brings decades of expertise. He has worked with Total Nigeria since 1985, including serving as Deputy Managing Director for Deep Water Services and holding various board positions within the company.

The leadership overhaul is expected to bring new direction to NNPCL, with both Ojulari and Kida seen as experienced hands in the industry.

By Anwar Usman

Not less than 45,689 applicants are conducting the Computer-Based Aptitude Test on Saturday (today) as part of the recruitment process to secure employment at Nigerian National Petroleum Company Limited.

The aptitude test, currently taking place at the Ansar-Ud-Deen Society Centenary Resource Centre in Maitama, Abuja, and various other testing centres across Nigeria, marks the second stage of the rigorous recruitment process that began earlier this year.

Previously, on July 25, 2024, the company announced openings for new entrants.

In a statement, Olufemi Soneye, the NNPC spokesperson, said the recruitment would be for various positions across various departments within the energy company and interested applicants to visit the NNPC careers page for application instructions.

However, in a new post on its official Facebook handle on Saturday to update the public on the process, the national oil firm emphasized that only the most qualified candidates will be selected for employment at the end of the exercise.

The post read, “As the Computer-Based Aptitude Test for NNPC Ltd.’s recruitment begins today at various centres across the country, 45,689 applicants compete in a transparent and inclusive recruitment process.”

The NNPCL Group Chief Executive Officer, Mele Kyari, who visited the centres, promises a smooth, transparent, fair, and credible process.

“As an equal opportunity employer, NNPC Ltd. has made special provisions to ensure that applicants with disabilities can take the test without any hindrance.

“Kyari reiterated that only the most qualified candidates among the 45,689 applicants will be selected for employment”.

The daily reality gathered that this may be the major recruitment exercise since the NNPC fully transformed into a limited company in 2022.

By Abdullahi Mukhtar Algasgaini

The Managing Director of the Kaduna Refining and Petrochemical Company (KRPC), Dr. Mustafa Sugungun, has said that the ongoing Quick Fix Project for the Kaduna refinery is scheduled to be completed by the end of 2024.

 Recall that the Nigerian National Petroleum Company Limited (NNPCL) awarded a $741m contract to South Korea’s Daewoo Engineering & Construction to rehabilitate the Kaduna Refinery.

Under the quick-fix repair contract, the firm will restore production at the 110,000 barrels-a-day facility to at least 60 per cent of its capacity by the end of 2024.

Speaking during the commissioning ceremony of the renovated Rido Community Primary School and a solar-powered borehole in Maraban Rido, Kaduna State, as part of its Corporate Social Responsibility (CSR) initiatives, he emphasised the company’s commitment to improving the living standards of its host communities.

 The MD, who was represented by the Manager of Operations, Mr. Emmanuel Ajiboye, noted that the success of the Quick Fix Project will bring immense economic benefits and job opportunities, boost petty trading, and foster other local businesses.

He said the school renovation aims to provide a conducive learning environment for pupils and teachers, while the borehole is expected to address water scarcity in the community and reaffirm KRPC’s dedication to sustainable development through initiatives like youth empowerment, rural electrification, periodic medical outreach, and other community-focused programs.

He urged the Rido community to support the Quick Fix Project, noting that its success would further strengthen the relationship between KRPC and its host communities.

In her remarks, the Head Teacher of Rido Primary School, Mrs. Rachael Aduwak, commended KRPC for the good gesture. 

She also appealed to the company to construct a perimeter fence for the school, adding, “We appeal to KRPC to furnish our classes with tables, chairs, and chalkboard as most of our students are sitting on bare floors during class hours.”

By Haroon Aremu

Dangote Refinery and the Nigerian National Petroleum Corporation (NNPC), two titans in Nigeria’s oil sector, have become unwitting pawns in a high-stakes game of greed, corruption, and control that threatens forever to alter the landscape of the country’s economy. 

The fallout from this secretive manipulation could send shockwaves across Nigeria and the global oil market. But the question remains: how deep does the corruption run, and who pulls the strings?

As Nigerians struggle with fuel scarcity and skyrocketing prices, a disturbing reality emerges—those tasked with managing the nation’s resources deliberately keep refineries inoperative, creating bottlenecks to enrich themselves. At the heart of this heist lies an even more sinister story: a calculated move by a select few to dominate and monopolise Nigeria’s oil industry by manipulating state-owned enterprises and private ventures like Dangote’s Refinery.

Is the NNPC’s Shady $2.76 Billion Stake in Dangote Refinery a marriage of convenience?

In 2021, when the NNPC acquired a 20% stake in Dangote Refinery for a staggering $2.76 billion, many believed it was a monumental step towards bolstering Nigeria’s refining capacity. But beneath the surface, critics questioned the logic of the government investing public funds into a private venture while neglecting its decrepit refineries, which had been left to rot due to years of corruption and mismanagement. 

Was this a genuine attempt to revive the oil sector or a well-disguised ploy to channel public funds into private pockets? The decision becomes even more dubious when you consider that NNPC’s refineries have been operating at less than 20% capacity for years despite repeated promises of rehabilitation. 

These non-functioning facilities force the nation to import most of its fuel, which conveniently benefits the very cabals that control the import contracts. As these refineries remain dormant, Dangote’s refinery, with its projected 650,000 barrels per day capacity, is positioned to monopolise the market once it becomes fully operational. 

Was the NNPC’s investment a masterstroke of collusion to further empower this monopoly? I wonder if Dangote’s unholy alliance with the government is a favouritism or Strategic Investment.

Aliko Dangote’s influence in Nigeria’s political sphere is well-known. His ability to secure favourable policies has long raised eyebrows. Many believe his success is due as much to his business acumen as his close ties with top government officials. Recent import restrictions, for instance, have practically handed the domestic market to Dangote.

Dangote Refinery’s development, delayed since its original 2016 completion date, has ballooned in cost from $9 billion to over $19 billion. Was this financial mismanagement, or were there deeper, darker forces at play—possibly designed to funnel excess funds into the hands of corrupt officials?

As the cabal’s grip tightens, their influence on oil prices becomes increasingly evident. Dangote’s market dominance will give him unprecedented pricing power. But with such control comes the risk of manipulation. 

The refinery’s vast production capacity could easily be used as leverage to influence oil prices, both domestically and internationally. Many fear prices will be artificially inflated, maximising Dangote’s profits while further squeezing Nigerian consumers.

This scenario becomes even more plausible given the NNPC’s deep involvement in the refinery. With its 20% equity stake, NNPC’s role in pricing decisions cannot be overlooked. Will this be another case of public officials prioritising their private interests at the expense of national development?

As domestic pressures mount and whispers of foreign market dominance grow louder, one question looms: will Dangote begin prioritising foreign buyers over Nigeria’s fuel needs? 

With access to international markets offering better returns and more stable pricing, there is growing concern that the refinery may abandon the local market in favour of more lucrative exports. This could leave the country in an ironic situation, producing refined oil but still unable to meet domestic fuel needs, leading to ongoing scarcity and high prices despite local production.

If the cabals continue manipulating the domestic oil market, forcing prices to unsustainable levels, Dangote might have little choice but to look beyond Nigeria’s borders. 

The timing of the refinery’s commencement raises even more questions. As Nigeria grapples with the controversial removal of its long-standing fuel subsidy, many speculate that this policy shift is designed to align with the Dangote Refinery’s launch. With subsidies removed, domestic fuel prices are expected to skyrocket, conveniently paving the way for Dangote to step in as the dominant player, reaping the rewards of higher prices.

While the government frames subsidy removal as a necessary economic reform, many Nigerians view it as another instance of policies being shaped to benefit the few at the expense of the many. The alignment of these policies with the refinery’s launch timeline is too coincidental to be ignored.

The potential for Dangote’s monopoly to distort the Nigerian oil market. With NNPC’s refineries effectively sidelined and the cabals controlling much of the nation’s oil wealth, Dangote stands poised to dominate every facet of the industry—from refining to distribution. However, monopolies rarely benefit consumers, particularly in essential industries like oil.

As Nigeria’s oil sector hangs in the balance, powerful forces are clearly at play. The cabals’ influence, Dangote’s political connections, and NNPC’s complicity have all converged to create a complex web of corruption, exploitation, and control. 

Will Nigeria’s oil wealth finally be harnessed for the benefit of its people, or will the cabals and monopolies continue to enrich themselves at the expense of the masses? 

One thing remains certain: the truth behind the Dangote Refinery’s rise and NNPC’s role in it could be the bombshell that blows the lid off one of Nigeria’s biggest corruption scandals yet.

Haroon Aremu is a passionate writer and Mass Communication graduate, currently serving as an NYSC member. With a focus on national development, he is keen on leveraging his expertise to drive positive change and welcomes opportunities in public policy, media, and development sectors. He wrote in via exponentumera@gmail.com.

By Usman Muhammad Salihu,

In Nigeria, fluctuating petrol prices have long been a source of frustration for citizens. It’s not just about the financial strain—it impacts daily life, from commuting to work to powering homes. The government faces immense challenges, balancing affordable fuel prices with foreign exchange rate volatility and maintaining a sustainable oil and gas sector. Add the country’s reliance on imported fuel, infrastructure problems, and unpredictable global oil prices, and you have a perfect storm.

The government’s communication around petrol price changes often lacks clarity and consistency, confusing and mistrusting the public. People ask, “What’s going on?” and “Why should we care?”

The Transparency Issue

A significant problem is the lack of transparency in how fuel prices are determined. The government’s lack of clear communication feeds uncertainty and speculation. This situation can be improved by regularly sharing detailed and transparent information regarding the factors influencing petrol prices. 

Nigerians need access to crucial data such as fuel import reports, pricing mechanisms, and subsidy allocations. Making this information publicly available would help build trust and reduce the growing mistrust surrounding petrol price changes.

Collaborative Stakeholder Engagement

The government must also open lines of communication with industry leaders, labour unions, and civil society organisations. These groups have a direct stake in how petrol pricing impacts the broader economy and everyday life.

Engaging these stakeholders in meaningful dialogue can help align expectations, address concerns, and prevent misunderstandings. This collaboration can reduce the public unrest often triggered by abrupt price hikes. Building consensus among all stakeholders can also create a more stable economic environment regarding petrol prices.

Establishing a Predictable Pricing Framework

One of the most critical steps the government can take is establishing a clear, stable, and predictable framework for setting petrol prices. Currently, changes in fuel prices often come as sudden shocks, leaving citizens and businesses unprepared. A transparent pricing model communicated in advance would help mitigate this uncertainty and reduce panic.

When people know what to expect and when they can make better financial plans and avoid the anxiety associated with sudden price hikes. This predictability would benefit individuals and businesses, as they could better manage their operational costs tied to fuel expenses.

Educating the Public on Petrol Pricing

Many Nigerians are unaware of the factors that influence petrol prices, such as fluctuations in the global oil market and government interventions to manage these costs. This knowledge gap contributes to the public’s frustration and misunderstanding.

Launching public education campaigns to explain the variables behind petrol pricing can help citizens make more informed decisions. Using various media platforms to deliver this information in simple, accessible language will foster better understanding and reduce confusion. It’s not just about explaining why prices fluctuate—it’s about empowering Nigerians with knowledge.

Reducing Reliance on Imported Fuel

Nigeria’s reliance on imported fuel is critical to its petrol price volatility. Exploring alternative energy sources and boosting local refining capacity are essential to reducing this dependence. Investment in local refineries, for instance, would not only lessen the country’s reliance on imports but also create jobs and foster economic growth.

Additionally, encouraging fuel efficiency initiatives can help Nigerians reduce fuel consumption. Simple practices like carpooling or using public transportation more frequently could significantly reduce fuel demand, ease supply pressure, and ultimately stabilise prices.

Investing in Alternative Energy Solutions

Another long-term solution is to explore and invest in alternative energy sources. By diversifying the country’s energy portfolio, Nigeria can reduce its dependence on petrol and mitigate the impact of global oil price fluctuations.

Renewable energy sources such as solar, wind, and hydropower could provide sustainable alternatives to petrol. While transitioning to these energy sources will take time and investment, the long-term benefits include energy security, reduced pollution, and job creation in the renewable energy sector.

Building Trust through Human-Centered Communication

Managing petrol pump prices is no easy task, but the government can ease the burden through a more human-centred approach to communication. By addressing citizens’ concerns in a relatable and transparent way, the government can foster trust and reduce the uncertainty often accompanying price changes.

This communication must be consistent and delivered across multiple channels to reach all Nigerians, from urban centres to rural areas. Regular updates, accessible language, and relatable messaging will go a long way in alleviating public frustration.

The Path Forward: A Collaborative Effort

Managing petrol prices in Nigeria is a complex but surmountable challenge. The process can become more manageable with clear, transparent communication and collaboration between the government, industry leaders, and the public. The government can create a more stable economic environment by taking a holistic approach, including educating the public, establishing a predictable pricing framework, and investing in alternative energy solutions.

The complexities of petrol pump price management require collective action. As Nigerians, we must engage with the process, hold the government accountable, and support initiatives that promote transparency and sustainability. Only by working together can we navigate the complexities of petrol pricing and ensure a better future for all.

Conclusion

Petrol pricing is a critical issue in Nigeria, impacting not just individual livelihoods but the broader economy. The government’s current approach, characterised by a lack of transparency and sudden price shifts, contributes to public mistrust and instability. However, by adopting a more transparent, predictable, and inclusive strategy, the government can build trust and create a more stable environment for all Nigerians. Investing in alternative energy sources and educating the public about the factors influencing petrol prices are essential steps in this process.

Managing petrol prices may be a tough job, but it can be made easier with the right approach. Through collaboration, transparency, and innovation, Nigeria can tackle this issue head-on, fostering economic growth and improving the quality of life for its citizens.

Usman Muhammad Salihu is a PRNigeria Young Communication Fellowship 2024 fellow and wrote via muhammadu5363@gmail.com.

By Ibrahim El-Caleel

This press release shows that Dangote Refinery is also enjoying the whole petroleum industry ruse and elongating it. NNPC said they bought your petrol at N898. Instead of this press statement to deny it, you simply tell the public the actual price you sold it to them.

For example, “We didn’t sell petrol at N898 to NNPC. We sold it to them at N619”. Is this too difficult to do or unethical?

When you do this, then let the NNPC come and deny it; then you take the next step by publicly sharing a sample of the invoice where they bought it at N619 from Dangote Refinery. This is what transparency means.

But how do you expect people to believe this? Why should people trust Dangote Refinery and not NNPC? Both DR and NNPC are only making statements; they go explain taya, no evidence. Where is the invoice?

The petroleum industry in Nigeria lacks transparency. Nobody wants to let Nigerians understand what is going on so that they can start asking the right questions. They are leaving everyone in the dark so that immediately you say anything, they will mock you that you don’t understand anything; you are a layman who doesn’t understand anything about the oil business! Yet, you are the same layman buying the petrol which fuels the industry.

What Dangote Refinery is doing at the moment is just a glorified, or let me say corporate “DM for price”. It’s the same “DM for price” that BUA Cement did one time saying it has reduced the price of cement without giving any details on how much was the initial price before they “reduced” it.

Hello DR, NNPC,

Price is not a trade secret, geniuses! If you are hiding the price of your product, then there is something shady you are doing. How can you be doing a “DM for price” strategy for a global commodity like petrol? It takes me just a click to know the price of a barrel of crude oil in the global market, same thing for an ounce of gold. What is so special about the price of the Nigerian refined petrol that you need to keep it a secret?

Anyway, lemme mind my business. You know over the last few weeks I decided to give up on my self-assigned goal of understanding the petroleum industry. I only drive into a filling station and buy petrol according to what I can afford at the time. How the petrol got there ain’t really any of my business any longer. I don’t care. When we all become tired of the nonsense going on in Nigeria one day, I am sure we will come and agree on the way forward. I am very sure this nonsense cannot continue to happen forever. It will end one day.

By Uzair Adam 

The Nigerian National Petroleum Company (NNPC) Ltd. has deployed over 100 trucks to the Dangote Refinery in preparation for petrol loading, scheduled to begin on Sunday, September 15, 2024. 

According to a post by NNPC on its official X handle, the trucks were dispatched to the refinery’s fuel loading gantry in Ibeju-Lekki on Saturday, with more expected to arrive. 

“As of Saturday afternoon, more than 100 trucks had been mobilised, and by the end of the day, up to 300 trucks are expected to be stationed at the gantry,” the company said.

The deployment marks a significant step toward ensuring timely petrol distribution from the Dangote Refinery, which is expected to enhance fuel availability nationwide.

By Uzair Adam

The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to take swift action in reversing the recent increase in the price of premium motor spirit (PMS), commonly known as petrol, at Nigerian National Petroleum Company Limited (NNPCL) outlets.

In an open letter dated September 7, 2024, signed by SERAP Deputy Director Kolawole Oluwadare, the organization deemed the price hike unlawful and a violation of constitutional and international human rights obligations.

SERAP also called for a thorough investigation into allegations of corruption and mismanagement within the NNPC, specifically regarding the reported $300 million bailout funds received from the Federal Government in August 2024 and the company’s $6 billion debt to suppliers.

The letter highlighted concerns over NNPC’s failure to remit oil revenues to the treasury, despite the company’s significant financial issues.

The group expressed concerns that the petrol price increase, which has pushed prices up to N855 per liter at some outlets, is exacerbating the already severe economic hardships faced by Nigerians.

SERAP further noted that the price hike disproportionately impacts the most vulnerable citizens, jeopardizing their living conditions and undermining their basic human rights.

SERAP warned that if no action is taken within 48 hours of the receipt of the letter, it will consider taking legal measures to compel the government to address the situation.