NNPCL

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 Nigerian National Petroleum Company Limited (NNPCL) has disputed claims made by the Muslim Rights Concern (MURIC) regarding the pricing of Premium Motor Spirit (PMS) and its impact on the Dangote Refinery.

MURIC had asserted that recent adjustments to petrol prices would prevent the Dangote Refinery from offering lower prices and that NNPCL had become the exclusive offtaker of all products from the refinery.

In a statement released by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, the company clarified that petroleum product pricing, including that from the Dangote Refinery, is dictated by global market forces.

The recent changes in PMS pricing, it noted, do not affect the refinery’s access to the Nigerian market.

NNPCL noted that the refinery could sell its products at lower prices if the current market rates are perceived as high, and reiterated that domestic refining does not guarantee lower prices when compared to global parity pricing.

Furthermore, NNPCL stated that it would only become a full offtaker from the Dangote Refinery if PMS market prices exceeded local pump prices.

It also made clear that both the Dangote Refinery and other domestic refineries are free to sell directly to any marketers on a willing buyer, willing seller basis.

NNPCL denied any intention of becoming the sole distributor for the refinery’s products and underscored its billion-dollar investment in the business, urging MURIC to verify facts before making public statements that could incite the public.

By Abdullahi Mukhtar Algasgaini

The Nigerian National Petroleum Company Ltd. (NNPC Ltd.) has called on the public, especially job seekers, to disregard rumours of employment slots for sale.

The company states that there is no iota of truth in the insinuations that it has employment slots on offer to anyone who wishes to buy, describing such antics as fraudsters who want to take advantage of unsuspecting applicants.

It cautions that as a responsible corporate entity, recruitment into the company is a straightforward process and does not involve the sale of slots or inducement of any kind.

It warns that anyone who pays money to anyone for any job in the company does so at his or her own risk.

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 Abdullahi Mukhtar Algasgaini

The Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has declared that he will reveal the truth about the company’s operations when the time is right.

Kyari made this assertion on Wednesday while testifying before a Senate ad-hoc committee investigating alleged economic sabotage in the petroleum industry.

Led by Senator Opeyemi Bamidele, the committee is probing the oil firm’s activities amidst controversy and public scrutiny.

Kyari denied any involvement in the importation of sub-standard products, stating that NNPCL is committed to transparency and honesty.

The CEO expressed frustration over unfair media attacks, which he believes are aimed at tarnishing the company’s reputation and creating the impression of economic sabotage.

“We are not criminals, we are not thieves,” Kyari said. “We will protect our dignity so we can serve this country.”

Kyari also revealed that the oil and gas industry is bleeding, hinting at undisclosed issues which “they” knew that cannot be made public “until the time comes.”

By Abdullahi Mukhtar Algasgaini

The Nigerian National Petroleum Company Limited declared a state of emergency on oil production.

This was a move towards increasing Nigeria’s crude oil production and growing its reserves.

Group Chief Executive Officer of NNPCL, Mele Kyari, disclosed this in a keynote address at the opening of the 23rd edition of the Nigeria Oil and Gas Conference and Exhibition Week in Abuja, on Tuesday.

“We have decided to stop the debate. We have declared war on the challenges affecting our crude oil production. War means war. We have the right tools. We know what to fight. We know what we have to do at the level of assets. We have engaged our partners. And we will work together to improve the situation,” Kyari stated.

Nigeria’s absurd crude supply crisis and loses N636bn revenue as oil production dips NNPC withdraws suit against ExxonMobil, Seplat $1.28bn deal.

According to him, a detailed analysis of assets revealed that Nigeria could conveniently produce two million barrels of crude oil per day without deploying new rigs.

Still, the major impediment to achieving this is the inability of players to act in a timely manner.

He added that the “war” will help NNPCL and its partners to speedily clear all identified obstacles to effective and efficient production, such as delays in procurement processes, which have become a challenge in the industry.

Mele Kyari, the head of the Nigerian National Petroleum Corporation Limited (NNPCL), revealed that the corporation has once again become the exclusive importer of petrol in the country.

Kyari stated that private companies are unable to import petrol due to difficulties in accessing foreign currency caused by shortages. 

“We are the only company importing petrol into the country. None of them can do it today. For them, access to foreign exchange is difficult. We create foreign exchange (FX), therefore we have access to FX, while their access to FX is limited,” Kyari said. 

This revelation has sparked discussions among experts, with oil and gas analyst Kayode Oluwadare unofficially confirming the return of the petrol subsidy in Nigeria.

Oluwadare highlighted that the move contradicts the initial purpose of deregulation, which aimed to enable independent marketers to import petrol independently. 

Oluwadare explained, “The government is gradually bringing back the conditions of the fuel subsidy regime. We are now back to the status quo. In the coming days, the petrol pump price will remain the same. We may also see the petrol pump price slightly coming down, with the current global trend, we are not likely to see an increase in petrol pump prices.” 

This development marks a significant shift in Nigeria’s energy landscape, raising concerns about the country’s economic stability and the implications for consumers in the face of global fuel market dynamics.

By Uzair Adam Imam

The Nigeria Labour Congress (NLC) has reportedly threatened to embark on a nationwide strike next month over the bitting economic hardship caused by the fuel subsidy removal in the country.

The Congress Spokesperson, Ben Upah, made this disclosure on Wednesday, adding that the they give seven days to the federal government go address the demand.

The Daily Reality recalls that President Bola Tinubu had, during his inauguration on 29 May, announced the removal of fuel subsidy.

The action had suddenly pushed up the price of the product, making life more difficult for the poor.According to Upah, the congress gave a nationwide strike notice beginning on 2 August to protest the removal of fuel subsidy by the federal government.

“Yes, the nationwide strike will commence on 2 August 2023. We will soon issue a communique to that effect,” Upah said.

This is coming a few hours after the National Association of Resident Doctors (NARD) began an indefinite strike in the country.

The doctors are demanding the implementation of a one-for-one replacement policy for healthcare workers, immediate payment of all salary arrears, implementation of a Consolidated Medical Salary Structure, and a new hazard allowance, among others.

By Abdulhaleem Ishaq Ringim

The enactment of the Petroleum Industry Act 2021 was intended to mark a significant shift in the regulation of the downstream petroleum sector. The act aimed to align petrol prices with market dynamics, phasing out the fuel subsidy regime. However, despite the planned full deregulation in February 2022, the government continued to allocate funds for subsidies, leading to financial strain and mounting debts.

Under the Petroleum Industry Act, the government ought to have terminated fuel subsidies and allow petrol prices to reflect the general market rates six months after its enactment. However, the government continued to provide for subsidy costs in its budget. Due to financial constraints, the government could not back the subsidy provisions in the 2022 and 2023 budgets with financing, resulting in unpaid subsidy costs. The Nigerian National Petroleum Company Limited (NNPCL), acting as the supplier of last resort, offset these costs. This resulted in the accumulation of debt of N2.8 trillion for the government in the process.

The new President, Bola Ahmed Tinubu, has pronounced the termination of the subsidy regime. This is in line with the law and is further necessitated by the inability to finance subsidy commitments since February 2022. The removal of subsidies means that petrol prices will now fluctuate based on market dynamics rather than being fixed. 

While the arguments continue on whether the announcement approach was systematic or not, it has to a certain extent, saved the country from the intense speculative buying activities that would have resulted from scheduling the announcement and other implications that would have marred such gradualism. I consider it a welcome development and commend the President for such uncommon courage, which has been missing in the governance space for long. 

However, the repercussions extend beyond price adjustments. The rise in price will naturally raise the costs of transportation, which will, in turn, further pressurise the country’s inflation rate. The government’s lack of resources to offset subsidy liabilities since February and the outstanding debt to NNPCL means there will hardly be any room for reinvestment, including allocating funds for palliatives or post-subsidy shock alleviation. Moreover, it is crucial to note that even when the government was able to offset the subsidy costs, it relied on borrowing rather than revenue to cover the costs, exacerbating the financial burden.

With the subsidy officially and finally gone, the government must prioritise strategies to repay NNPCL’s debt of N2.8 trillion and other subsidy-related debts while refocusing on the productive sectors of the economy and social welfare. This commitment demands immediate attention, as the accumulated debt poses a significant liability and might impede the effective utilisation of government revenues.

An encouraging prospect arises from the current situation as we grapple with outstanding subsidy debts. Once the government’s financial circumstances improve, its focus will permanently shift away from the subsidy regime and towards prioritising crucial areas such as education, health, infrastructure, and other significant sectors. This shift is anticipated and underscores the government’s intention to allocate resources towards enhancing public value and renewing national hope. 

Meanwhile, the government should advisably prioritise the enhancement of public transport systems and collaborate with state governments to improve mass transit systems and infrastructure, especially by incorporating more diesel-based buses into the stock of public transport vehicles in their various states. The situation should also serve as an incentive for state governments to renew focus on developing Bus and Light Rail Transit systems. 

To consolidate this hard decision, the government should consider the privatisation of state-owned refineries to enhance efficiency and promote private sector participation in the downstream sector. By opening up the refineries to private investment, the government can improve their operational performance, output and overall local refining capacity. As the Dangote refinery gets ready to begin operations, the government should also support other private oil-refining projects like the BUA refinery in Akwa Ibom.

Additionally, the Nigerian National Petroleum Company Limited (NNPCL) should explore the possibility of an initial public offering (IPO) to raise capital and expand its operations. Emphasising the development of the gas sector could also be beneficial, considering its potential for revenue generation and reducing dependency on imported fuels.

Abdulhaleem Ishaq Ringim is a political/policy/public affairs analyst. He writes from Zaria and can be reached via haleemabdul1999@gmail.com.