Civil society groups monitor crude sale to Dangote refinery in naira
A coalition of 28 Civil Society Organizations (CSOs) has announced plans to establish a situation room in Abuja to ensure compliance with the presidential directive requiring the Nigerian National Petroleum Corporation Limited (NNPC Ltd) to sell crude oil to the Dangote Refinery in naira.
The initiative follows concerns raised by the CSOs during a facility tour of the 650,000 barrels per day (bpd) refinery, which is the world’s largest single-train refinery, located in Lagos.
The CSO leaders voiced their discontent with the NNPC Ltd and regulatory bodies, accusing them of deliberately stalling the nation’s refineries to perpetuate reliance on imported petroleum products. This concern emerged amidst recent tensions between the Dangote Refinery and NNPC Ltd, leading President Bola Tinubu to intervene and mandate that the refinery should receive crude oil payments in naira.
Speaking for the coalition, Solomon Adodo of the Rise Up for A United Nigeria expressed admiration for the state-of-the-art refinery, questioning why regulatory agencies would seemingly favor foreign importers over a local refinery capable of stabilizing the country’s foreign exchange market and reducing fuel costs. He emphasized that the CSOs plan to petition the Presidency to designate the Dangote Refinery as a national asset, instrumental in freeing Nigeria from the dependency on fuel imports while continuing to export crude oil.
Adodo lamented the situation, stating, “Having toured this world-class project, it is perplexing and disappointing to witness government entities acting against the best interests of Nigerians. Those benefiting from the nation’s plight do not wish to see the Dangote Refinery succeed.”
The coalition declared its commitment to defending the refinery, seeing it as a crucial national interest. Adodo stressed that their advocacy is not just for the refinery’s benefit but for the broader welfare of Nigerians, who stand to gain from reduced fuel prices and a more stable economy. He warned that any attempt to undermine the presidential directive would be met with strong resistance.
The group also plans to pressure the government to ensure that crude oil sales to the Dangote Refinery are conducted in Naira and that the refinery’s products are made readily available at petrol stations across the country. They expressed readiness to organize protests and advocacy campaigns to support the refinery’s operations, describing any resistance as an international embarrassment to Nigeria.
Refuting allegations of monopolistic intentions, Adodo argued that the Dangote Refinery represents not a monopoly but a “peopleopoly,” serving the interests of the Nigerian populace. He mentioned that the coalition would seek support from international bodies, including the American Society of Engineers and the European Union, to maintain vigilance over the situation.
During the visit, Devakumar Edwin, Vice-President of Dangote Industries Limited, highlighted the refinery’s potential to transform Nigeria’s economy by reducing the exportation of crude and the importation of finished products. He pointed out that, similar to the company’s impact on the cement and sugar industries, the refinery aims to shift Nigeria from a net importer to a significant exporter of refined petroleum products.
Edwin recounted the challenges faced by Dangote Industries in securing crude supply, including demands for prices above the global market rate, which led the company to source crude from Brazil and the United States. Despite these obstacles, he affirmed the company’s commitment to adding value to the Nigerian economy and creating jobs for Nigerians.
The refinery, with a capacity far exceeding Nigeria’s domestic needs, will see 55% of its production exported, providing a much-needed boost to the country’s foreign exchange reserves. Edwin reassured that despite the difficulties, Dangote Industries remains focused on its mission to support Nigeria’s economic growth and development.
