Dangote Petrol Pricing: NNPC’s Dance of Deception
We all dream of a better Nigeria, but instead, we are dragged into an endless labyrinth where a privileged few find joy in our collective suffering.
It is now glaringly evident that either the Federal Government or NNPC Limited—or perhaps both—are not being entirely truthful about their public spat with the Dangote Refinery. What we witness today is a disgraceful dance of deception.
Why is it that honesty and efficiency have always been strangers to NNPC? Let’s trace the roots of this saga. When former President Muhammadu Buhari commissioned the Dangote Refinery, it was a moment of national celebration. We rejoiced at the thought of locally refined fuel, heralding the end of skyrocketing prices.
But soon after, whispers began. Under the new administration of Bola Tinubu, NNPC’s stake in the refinery was reportedly being reduced, despite earlier assurances of a significant investment. From there, rumors of a complete divestment emerged.
As Dangote’s refinery began to produce diesel, what should have been a moment of triumph turned into another chapter in this twisted tale. Suddenly, NNPC and other regulatory bodies, particularly the Nigerian Midstream Petroleum Regulatory Commission (NMPRC), attacked Dangote, claiming his diesel was substandard and unfit for domestic consumption.
The government accused Dangote of foreign exchange violations, raided his refinery, and refused him access to crude oil. Dangote, forced to look elsewhere, had to import crude from the United States. In the midst of these power plays, accusations flew that Dangote’s product quality was subpar.
Trapped in this web, Dangote fought back. In a dramatic revelation, sympathizers exposed Tinubu’s Malta-based refinery and its dubious dealings. What followed was a flurry of denials and threats against anyone who dared speak out, including myself.
The drama then shifted to pricing, with NNPC insisting Dangote must purchase crude in dollars, under the guise of global norms. Dangote cried foul, and we rallied in support. Only then did the government agree to allow payment in Naira, but only starting from October 1st.
And then, as the refinery was about to release petrol to the Nigerian market, the government made its move. It unveiled an inflated price template for petrol across the nation, pressuring Dangote to sell at higher prices. This move guaranteed NNPC a profit margin when it resumed importing fuel, sacrificing consumers’ interests on the altar of corruption and incompetence.
Furthermore, the government prohibited Dangote from selling directly to marketers, making NNPC the sole off-taker of petrol. Dangote was thus caged, not permitted to set his price or sell directly—a calculated ploy to entrap him.
The strategy was twofold: first, to tarnish the refinery’s reputation with allegations of poor quality, and second, to manipulate pricing, driving up the cost of fuel. They claimed to protect Nigerians from potential extortion by Dangote while plotting to blame him for the inflated prices.
But Dangote saw through the trap and swiftly launched a media campaign to educate the public. He clarified that while he controlled the quality of his product, pricing was dictated by NNPC.
The question we must ask is: where is Nigeria’s Petroleum Minister in all this? Why has President Tinubu, who also serves as Petroleum Minister, remained silent in this sordid affair? The truth is clear: the Dangote Refinery is a thorn in the side of those who refine Nigerian crude in foreign lands and import it back, collecting subsidies along the way. They seek to bend Dangote to their will or coerce him into maintaining the corrupt status quo.
The essence of this conflict lies in appropriate pricing, breaking the grip of oil cartels, and ending the fraudulent subsidy regime that bleeds the nation. It is a battle to reclaim Nigeria’s oil and gas sector from the clutches of an unscrupulous cabal. Dangote Refinery blindsided them, and they are now fighting tooth and nail to preserve their interests.
The harassments of labor leaders by the government may not be unrelated to this oil war. It is about control, power, and the right to dictate Nigeria’s oil future. Amidst all this chaos, Tinubu remains silent, leaving the nation in turmoil.
How do we explain the absurdity where NNPC Retail, after acquiring Oando’s assets for $324 million, dissolves and hands over control to OVH, Oando’s parent company? Today, NNPC, through Oando, is the sole buyer of Dangote’s petrol and dictates its price across the nation. Is it not clear who truly benefits from this charade?
The real victor in this shameful dance is Tinubu, the petroleum minister and de facto controller of Oando/OVH. The losers, as always, are Nigerians, who are being led down this dark path.
Izeze writes from Abuja
From left, Amb Aminou Akadiri, Executive Director, Federation of West African Chambers of Commerce and Industries, Mrs Oluranti Doherty, Managing Director, Export Development, Africa Export-Import Bank and Dr Olumide Ajayi, Executive Director of Africa Leadership Foundation during the SME Agribusiness Export-Readiness Accelerator Training held in Abeokuta
