Scapegoating, blackmailing the Dangote Refinery and Aliko Dangote, by Uche Diala

The hidden and naked attempt by some individual and corporate entities to gaslight Nigerians and to scapegoat and blackmail the Dangote Refinery and by extension Alhaji Aliko Dangote himself continue relentlessly and they seem to be succeeding with some Nigerians.

I just read a submission to the effect that because government is selling crude oil to the Dangote refinery in Naira, the refinery should not sell its petrol at more than N500 per litre Otherwise the government should revert to selling to it in dollar.

Permit me to make some clarification here …

Yes. Government pledged to sell crude to Dangote Refinery in Naira, but that is the Naira equivalent of the international crude oil price based on the prevailing exchange rate.

I have been asking and no one has told me, neither have I read (definitely not from NNPCL and NMDPRA) that the government is selling or plans to sell crude to the refinery at below prevailing international crude price?

So, what is the special favour to the Dangote refinery here? If it pays the same price that it would have paid elsewhere for crude, just that it is paying it in Naira?

There might be some advantage in convenience amd cost of funds to DR but the major advantage of selling crude to DR in dollar, in my view, weighs more in favour of our economy in the sense that the forex it would have used to pay for the crude in dollar would be saved, thereby helping to strengthen the Naira over time.

On the other hand, in reciprocity, the refinery will sell its products for the domestic market in Naira. Again saving Forex that would have been used in the case of dollar purchases.

That was the whole idea in the first place and a key motivating force, in addition to ensuring self sufficiency in petroleum products and energy security, for the last administration and majority of Nigerians rooting for and doing everything possible for domestic refining capacity (private and public) to be restored via the 650,000 bpsd capacity Dangote refinery and the 4 state owned refineries (450,000 bpsd combined capacity).

Dangote PMS Pricing …

Why exactly would Dangote Refinery sell PMS at N500/litre or thereabout as bandied by some persons?

When the same PMS is sold at $0.62 (N1,004) in Saudi Arabia, $0.65 (N1,053) in Russia, $0.92 in USA, $0.93 (N1,490) in China, $1.13 (N1,830) in India and $1.26 (N2,041) in South Africa and $1.86 (3,013) in the UK?

*Exchange rate used N1,620 to $1 (CBN website).

Is it a father Christmas or does it not run production costs like every other refinery around the globe? Including cost of crude oil which it is obviously not getting at any rebate, neither is it getting it 100% from Nigeria.

The truth that I have stated severally is that, there is no way PMS from the Dangote Refinery would be significantly cheaper if the government does not show significant interest and political will and if the NNPCL does not get more sincere, transparent and creative in its dealings with the Dangote Refinery.

It is obvious that there are elements or interested parties who do not want the joy Nigerians anticipated from the completion and presence of the jinx-breaking world’s largest single train refinery in Nigeria to be complete.

Part of their antics, since they couldn’t stop its emergence and completion, is to present the Dangote refinery as the problem and by extension Aliko Dangote as the enemy, especially using the PMS pricing issue, when he is clearly not. On the contrary, he brought the solution and no attempt at revisionism will change that fact.

Nigerians need to be careful so as not to play into the hands of those who want to make the Dangote Refinery the problem and Alhaji Dangote the villain.

Why did we not have this same confusion, meandering and hide and seek games when the Dangote Refinery rolled out and priced its AGO (Diesel) product? Definitely because there was less external interest and interference. Think about it.

It ought to be worrisome to every discerning Nigerian the seeming non challance, reluctance and lack of enthusiasm and cooperation on the side of both the NNPCL and the government regarding the Dangote Refinery. I hope every well meaning Nigerian stays vigilant and engaged.

God bless Nigeria.

©️ Uche Diala

druchediala@gmail.com
9th September 2024

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