By Elizabeth Chukwuma
WhenAliko Dangote, Kano state born multi-billionaire business mogul paid the Lagos state government the sum of the North American country of he United States sum of $100 million to the Lagos state government in 2016 to establish a world class refinery that would cost $19 billion after feasibility studies, not many people took him serious.
Unknown to those who had adopted a wait and see game in the Nigerian National Petroleum Corporation, NNPC, now baptized Nigerian National Petroleum Company Limited, NNPCL, with the signing of the Petroleum Industry Bill, PIB, passed by the National Assembly in 2021, by former President Muhammadu Buhari, his mind was set on going with the construction of the multi-billionaire refinery that would process 650,000b/d once it becomes operational.
Dangote may have taken the bold initiative to establish the large scale oil refinery to make Nigeria self-sufficient in petroleum products production ranging from petrol, diesel, kerosene and Aviation Turbine Kerosene, TK, and supply same to Benin Republic, Ghana, Togo, Camerroun, Gabon, Kenya, Ethiopia and other African countries. He was emphatic that the massive refinery project will have meaningful impact within the Continent.
This is because the Nigerian government was said to have lacked the capability to refine its crude oil production forcing it to rely on offshore refineries to refine its crude. The business mogul was said to have told those that cares to listen that the completion of the $19 billion project will encourage the NNPCL and other local traders to shift away from relying on European refineries and Malta Island blending plants. He had said that the NNPCL, under the close watch of Mele Kolo Kyari, have been very helpful as the oil octopus do their bit.
His worry was that since the company started production at the tail end of former Buhari’s Administration, Shell Petroleum Development Company, SPDC, and some other International Oil Companies, IOCs, have been struggling to supply crude to the Lekki Free Trade Zone , LFTZ, in Lagos, the nation’s Commercial nerve centre, based refinery because they are used to exporting to earn hard currency and nobody wants to stop exporting to Europe or selling to the Malta Island blending plants including the NNPCL, to earn hard currency.
Dangote, President Dangote Industries, who was said to be under pressure by some other African Leaders to come and invest in their own country may have known that he has to fight to get the IOCs, NNPCL and local traders patronize the products produced in his refinery to avoid making it a wasted investment by still engaging in importation. The business mogul may have seen it as a challenge be overcome a that had to be overcome as he was said to have told the CNN, that the has been ‘’fighting battles and don’t get tired of anything’’.
True to his words, ever since the Dangote refinery started production mid last year, Dangote, appears to have been fighting an ending battle with the newly formed Nigerian Medium, Upstream and Downstream Petroleum Regulatory Authority, NMUDPRA, which has Farouk Ahmed, as the Chief Executive Officer, CEO, NNPCL and the IOCs, to stop importation of products into the country but no luck.
This is where President Bola Ahmed, who is facing of his greatest challenge in office: planned nationwide protest due to the prevailing hardship in the country occasioned by harsh government policies that had to do with removal of petrol subsidy and unification of the official and parallel, popular, black market exchange rates may have to intervene to save the situation from degenerating and kill the industrialization of the country.Kyari led NNPCL, may have shown that the company is unstoppable in its importation of products into the country despite Dangote’s outcry.
Reports had it that in nine years the oil octopus, had imported 2.25 billion worth of petrol, alone. From Malta Island blending plants, which the Dangote Industries Presidents had are owned by NNPCL, officials, but Kyari, the company’s helmsman would not take it.
An aggrieved Dangote may have made the Nigerian Government to understand that there was no basis to still allow NNPCL, to import petrol from Malta Island blending plants. He has his reason. An oil blending plant has no refining capability , but can only be used to blend refined oil, meaning motor oil that has been treated to remove dirt , fuel and water , with additives to create finished lubricant products.
Going by reports on the world Trade Map, Nigeria, the most populous country in the African Continent imported petroleum oils obtained from bituminous minerals worth $2.8 billion in 2023, jumping by a 342% increase from $4.5 million in 2013, during former President Goodluck Jonathan’s Administration.The country was said to have also imported petrol worth $59.98 million in 2014, $11.01 in 2015 and $13.32 million in 2016.
The Nigerian Government through NNPCL, may not have imported petrol from Malta Island between 2017 to 2022 but the report on the world Trade Map shows that there was a geometric leap in2023, the country’s Presidential, National Assembly, Governorship and state Assembly year as it had imported petrol worth $2.08 billion. This clearly shows that over the years, NNPC, which had been Balkanized into different companies that metamorphosed into NMUDPRA and NNPCL, had used importation of petrol as a major source frittering away the country’s lean foreign currency for their own pecuniary gains.
Ahmed, the NMUDPRA, helmsman may have shocked Nigerians hen he stated that no amount of pressure from the likes of Dangote who enoys monopoly and wants to market his refinery both within and outside the country would make NNPCL, to stop importation of petrol into the country. Call this, a gng up against Dangote refinery to turn it to be like state-owned refineries in PortHarcourt, Warri and Kaduna with a combined capacity of 50000b/d, which currently undergoing Turn around Maintenance, TAM.
Until the former Buhari’s Administration had contracted Chrome Oil Services Limited to carry out the portHarcourt refinery TAM while Daewoo Engineering & Construction Nigeria Limited was contracted to carry out the TAM of Warri and Kaduna refineries.
Until the engagement of foreign Companies, the state-owned refineries were said to be working in bits and fits and about to pack up. The TAM, according to informed sources was like a stop gap measure by the Administration as it was obvious that the state-owned refineries would still run into problem. R This may have informed why the NMUDPRA boss and the NNPCL Authorities have ganged up to kill the Dangote refinery which a processing capacity of 650,000b/d , much more than the combined capacity of the state –owned refineries which is only 450,000b/d.
Many believe that both not for the face off between the African richest man and investor and Ahmed led NMUDPRAas well as Kyari, the NNPC bossL, some of the secret informations filtering out from the nation’s oil industry may not have been let out of the bag, confirms what Pastor Enock Adejare Adeboye , General Overseer of the Redeemed Christian Church of God had Prophesied On January 1, 2024.
The RCCG, General Overseer, had said said that the winds is blowing and that ”some serious secrets would come into the open”. He may not have had in mind that there would be allegations and counter-allegations etwen Dangote, multi-billionaire business mogul, NMUDPRA/ NNPCL, top officials, that would expose the rot in the nation’s petroleum industry and subsequent intervention of the Senate to get to the root of the matter.
Aware of the fact that the rift between Dangote, and the IOCs, NMUDPRA and the NNPCL, may further kill the nation’s dwindling economy, may have forcedd why Godswill Akpabio, a former governor of Akwa Ibom state led Senate to have concluded concluded plans to step into the matter,
The Lawmakers were said to have to invit reached agrrement to invite Senator Heineken Lokpobiri, minister of state for Petroleum Resources, Olayemi Michael Cardoso, governor, Central Bank of Nigeria, CBN, which Organisation had earlier advanced US $130 million financial support for the construction of the Dangote refinery, Abubakar Dantsoho, Managing Director, Nigerian Ports Authority, NPA, Kyari, NNPCL and the Dangote Industries officials for questioning over ”the alleged economic sabotage in the country’s petroleum Industry”.
Given the serious of the allegations by the warring parties may have informed why the Green Chamber had constituted a 14 – member ad-hoc Committee on Tuesday,July 23, 2024, ‘’to investigate the billions of US, dollars that had been spent by the Federal Government on the TAM, of the state –owned refineries in the last 10 years to address the deep –seated challenges confronting the industry.
The public hearing which is expected to have the officials of the Contracted foreign firms handling the TAM, of the three state –owned refineries was said to have been fixed on September 10, 2024. As a prelude to getting to the root of the matter, the 14-member Senate ad hoc Committee are expected to visit to visit Lago, PotHarcourt andWarri to engage with the key actors in the nation’s petroleum industry.
The Lawmakers who appears to be enjoying what is happening between Dangote and NMUDPRA/NNPCL, officials may have sent a message to them that ‘’it will no longer be business as usual ‘’ as it is determined ‘’to unravel the rot in the nation’s petroleum industry’’. Bad news for the NMUDPRA and the other agencies which had been penciled down to be invited for questioning by the Senate , the ad -hoc Committee, investigating the alleged economic sabotage had said that ‘’there would be no room for sacred cows’’, stressing that it is ready ‘’to issue a warrant of arrest to any of the agency official that effuses to their invitation for appearance.
In a related development, George Akume, a former governor of Benue state, where the armed Fulani herdsmen are making things difficult for the farmers and now Secretary to the Government of the Federation had said that the FG, spent $1.5 billion between 2020 and now, ‘’to protect the nation’s oil installations and curb crude oil theft.
The SGF, who could no hide his feelings had said that the President is worried about the report of the Nigerian Extractive Industries Transparency Initiative, NEITI, which was said to have pointed out that over $46 billion worth of stolen crude was stolen from the country between 2009 and 2020, meaning that there was no basis for the engagement of the local contracting firms to guide the oil installations in the Niger Delta region. Recall that Benjamin Kalu, Deputy Speaker of the House of Representatives had revealed $10 billion has been lost in seven months of the Tinbu’s Administration to crude oil theft , insisting that no magic can be done to curb the theft , which Asari Dokubo, a one-time Niger Delta, militant had said during a visit to the President at the Presidential Villa , in 2023 that Crude Oil theft in the Niger Delta rgion could be trace to the military.
Acting on the 2023, NEITI, report that the country lost 619.7 million barrels of crude oil valued at about N16.25 trillion to crude Oil theft between 2009 and 2020.Dokubo had said that the military have all that it takes to curb the activities of the oil thieves but have refused to do so for their own pecuniary gains.
