NNPCL supplies 30m barrels of crude oil to Dangote, 17.6m for September, October 

 

The Nigerian National Petroleum Company Limited (NNPCL) Thursday said it had so far supplied 30 million barrels of crude oil to the Dangote Petroleum Refinery.

It also promised to supply a total of 17.6 million barrels of the product to the refinery between September and October.

Executive Vice-President Downstream NNPCL Adedapo Segun disclosed this while featuring on Arise Television, monitored by Blueprint in Abuja.

The move, Segun said, was part of the federal government’s efforts towards driving local production of petroleum products by selling the crude to local refineries.

“We have supplied about 30 million barrels to Dangote so far. 6.3million million this month, and we will supply 11.3 million in October,” he added.

Giving further assurance, he said: “We will be providing 6.3 million barrels of crude oil to Dangote refinery in seven cargoes. And in October, we will be providing another 11.3 million barrels of crude oil to Dangote refinery in 13 cargoes.

“So, we are doing everything we can to make sure this situation abates as soon as possible.”

Prior to the federal government’s intervention, the Dangote refinery was buying crude oil outside Nigeria.

And following public outcry and other economic considerations, the Federal Executive Council (FEC), last month, approved the sale of crude oil in naira,   to Dangote refinery and other local refineries to reduce forex pressure.

… NNPCL yet to lift petrol – Dangote

In a related development, the Dangote Refinery Thursday clarified that contrary to some media reports, the NNPCL was yet to commence the lifting of petrol.

This, it said, was because both parties were still negotiating the terms on which the transaction will be based.

Group Chief Branding and Communications Officer Dangote Group Anthony Chiejina clarified this in a statement, saying it was not the lot of the company to determine the price of petrol as the sector is regulated.

Faulting the report, Chiejina said: “We would like to state that NNPC has not commenced lifting of refined Premium Motor Spirit (PMS), commonly known as petrol, from our Dangote Petroleum Refinery.

“Therefore, the issue of fixing the price of petrol lifted from our refinery does not arise, as we are yet to finalize our contract with NNPC.

“The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we cannot determine, fix, or influence the product price, which falls under the purview of relevant government authorities”.

He called on the public to disregard the reports “as it is misleading and does not represent the true position in this matter. We are guaranteeing Nigerians of exceptionally high quality petroleum products that will be readily available all over the country.”

…Afenifere calls for fuel price reversal

And still on the new pump price, the pan-Yoruba socio-cultural and socio-political organisation, Afenifere, Thursday, asked the federal government to order the NNPCL to reverse itself on the new pump price.

In a statement by its national publicity secretary, Comrade Jare Ajayi, Afenifere said this became necessary in view of the fact that Nigerians currently go through a lot of challenges as a result biting socio-economic crunch and the attendant hardships.

Afenifere said the federal government should stick to the claim by the Minister of State for Petroleum, Mr. Heineken Lokpobiri that the President Bola Tinubu administration never interfered in the running of the company.

“It is therefore a wrong time to come up with any policy that will increase the undesirable challenges Nigerians are going through presently.

“Failure by the NNPCL to reverse the latest increment in fuel price will rob off negatively on some policies of Tinubu administration to ease things for the citizens. Policies such as Students Loan Scheme and Consumer Credit Scheme that are just taking off would be affected.

“With the latest increase in the price of Premium Motor Spirit (PMS) otherwise known as petrol to N897 per litre, the cost of fuel in Nigeria has risen by 460 per cent in 15 months.

“It is curious that an organisation that declared a profit running into trillions of naira could almost in the same breath claim it is indebted to the tune of nearly seven billion US dollars. Why not pay off the debt from the available fund before declaring it as profit?,” the body said.

Afenifere further said: “It is common knowledge that the cost and availability of energy such as petrol, gas, electricity, diesel and kerosine are major factors not only in production and services but also on the quality of well-being that Nigerians can enjoy. 

“Hikes in prices of these energy sources have astronomically increased the cost of services and commodities, reduced the disposal incomes of average Nigerians and heighten their health risk.” 

 ‘…NLC never ordered increase’ 

Similarly, the Democratic Front (TDF) has said Tinubu did not betray or deceive the Nigeria Labour Congress (NLC) as claimed by its president, Joel Ajaero.

 TDF added that Labour and government mutually negotiated and agreed on the minimum wage. 

In a statement Thursday in Abuja by its chairman, Malam Danjuma Muhammad and secretary, Wale Adedayo, TDF said President Tinubu could not have been emphatic and decisive on the pump price of fuel in a deregulated market.

TDF said: “Once again, we are disappointed with the often repeated wrong postulations of the Joe Ajaero-led Nigerian Labour Congress against the government and person of President Bola Ahmed Tinubu, adding that most of what they say cannot add up.

“In a rather disheartening and incoherent manner, Mr. Joe Ajaero signed a statement alleging that President Bola Ahmed Tinubu betrayed the Labour Congress with the recent increase in the pump price of PMS by the Nigerian National Petroleum Company Limited (NNPCL). 

 “The negotiation of the minimum wage was never debated as a condition to how much fuel would be sold. It is pertinent to state that President Tinubu never hid his desire or pretended over his preference to make the ideals and philosophy of a liberal free-market economy the focal point of his economic transformation agenda.

 “As a matter of fact, he announced an end to the age long petroleum subsidy regime in an unprecedented fashion, during his inaugural speech on 29th of May 2023, to herald the commencement of the end of state-controlled economic policies and protectionism in the Nigeria investment ecosystem.

 “From our knowledge of the President’s enviable background as an experienced private sector player who majored in the oil and gas industry, we believe that he will not, for whatever reason, give personal guarantee or assurance to anybody or group, on a specific price of fuel in Nigeria, knowing full well that in the absence of government subsidy, such prices are solely determined by the unpredictable dynamics of market forces.

 “We therefore view the accusations against the President by Joe Ajaero as untrue and a ridiculous attempt to blackmail the President. 

“It is all an attempt to divert public attention from a security investigation and an ongoing trial that directly links a foreigner accused of committing treasonable offences against the Nigerian stat to the NLC Secretariat in Abuja.

“The factors that necessitated the recent hike in PMS price by NNPCL are not opaque, as it has been comprehensively explained by the organization itself. 

“We understandably note that the withdrawal of fuel subsidy by government has compelled the NNPCL to respond to the dictates of market forces, in order to cope with the logistics of importing refined petroleum into the country. The increase in the pump price is to accommodate the landing cost of the product.”

The group, however, expressed the hope that the fuel price will crash with the expected infusion of locally refined fuel from Dangote Refinery into the Nigerian market 

“We at TDF expect every responsible and patriotic organization in the country, NLC inclusive, to focus attention on the new oil sheriff in town, that is, Dangote and other private refineries in Nigeria with a view to ensuring that all the actions and incentives deployed by President Tinubu to encourage local refining succeed. 

“This is the right path for the Joe Ajaero led NLC to follow, if truly they are sincere about reducing fuel price in the country. We want Nigerians to know that the down- stream petroleum sector is currently in transition mode from the era of imported fuel consumption to the utilisation of locally refined fuel. For us, the increase in fuel price is a true reflection of the market situation as obtained in the petroleum importation business,” the statement added.

…Opposition PDP faults hike

Taking a different position however, the main opposition party, the Peoples Democratic Party (PDP) described the fuel price hike as  a brutal assault on the sensibility and wellbeing of Nigerians the All Progressives Congress (APC) administration.

In a statement, the PDP  national publicity secretary, Hon. Debo Ologunagba, said:  “The secretive and corrupt administration of the petroleum sector and persistent increase in fuel price under the Tinubu-administration without due regard to the wellbeing of the people is akin to pushing Nigerians to the wall and daring them to do their worse.

“The APC administration has consistently shown itself to be anti-people, unconcerned and deaf to the agonies of millions of Nigerians who can no longer afford their daily meals, medications and basic support for families.

“Today, under the Tinubu-led APC administration, over 150 million Nigerians have sunk below poverty line, businesses are collapsing daily as the naira now exchange for over N1,600 to a dollar with over 34% inflation rate and over 40% unemployment rate which are expected to rise further with the latest draconian increase in the price of fuel.

“The admission by the APC-led federal government that it has handed the fate of Nigerians to oil racketeers in the name of free market economy further validates the position of the PDP that the Tinubu-led administration has abdicated the primary purpose of government; which is to provide for the welfare and security of the citizens.”

About Benjamin Umuteme, Bode Olagoke, Kehinde Osasona, Abuja and Bayo Agboola Ibadan

View all posts by Benjamin Umuteme, Bode Olagoke, Kehinde Osasona, Abuja and Bayo Agboola Ibadan →