Should Nigerians Sympathise With Aliko Dangote?, by Adewole Kehinde

“Before the monopoly should be permitted, there must be reason to believe it will do some good – for society, and not just for monopoly holders” – Lawrence Lessig

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Thursday, 18th July 2024, said the 650,000 barrels per day Dangote refinery is still at the pre-commissioning stage and has not yet been licensed.

Mr Ahmed said the allegations raised by the refinery that its operations are being scuttled owing to a lack of supply of crude oil by International Oil Companies (IOCs) are untrue.

“Dangote refinery is still in the pre-commissioning stage. It has not been licensed yet. We have not licensed them yet. I think they are at about 45 percent completion. So, we cannot rely heavily on one refinery to feed the nation because Dangote is requesting that we suspend or stop all importation of petroleum products, especially automotive gas oil (AGO) or jet kero, and direct all marketers to the refinery,” Mr Ahmed said.

I was shocked to read that the Dangote refinery is at about 45 percent completion because I recall that former President Muhammadu Buhari on Monday, 22nd May 2023, commissioned the 650,000 barrels per day Dangote refinery located at the Lekki free zone near Lagos.

Initially, I almost believed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which oversees downstream and midstream operations, was treating Dangote unfairly.

While I was still compiling data from NNPC Limited and the Dangote Refinery, I received a shocking announcement that Speaker Abbas Tajuddeen had dissolved the committee due to a purported compromise by committee members who had cleared Dangote Refinery before the assignment formally began.

It certainly seems that there were inadequate plans in place when Dangote was constructing the refinery regarding his source of feedstock.

A refinery of this size is never built or opened without a refinery agreement to obtain feedstock. Unfortunately, Dangote Refinery lacked a feedstock arrangement.

Dangote’s issues included a shortage of feedstock, which he is currently resolving now that the refinery is operating.

I later discovered that Dangote Refinery didn’t enter into any agreement with the International Oil Companies to give him feedstock. So, why is he trying to blackmail them?

Regarding the contentious licensing matter, the Dangote Refinery is licensed to construct the plant but not to operate other aspects of its business.

I was shocked when I heard that Dangote was asking the regulator to direct all oil marketers to get petroleum products from his refinery. If that is done, who will patronize other licensed refineries in the country?

Giving Dangote the monopoly he is requesting from the regulator would force the operations of other oil marketers to fail, which goes against the deregulation program that allows for healthy competition among marketers through importation.

In response to certain House of Representatives members’ calls for the dismissal of Mr Mele Kyari, the Group Chief Executive Officer of NNPC Ltd., I would like to clarify that the GCEO is entitled to a fair trial; this is not only their constitutional right but also their right and the House has dutifully established a committee to look into NNPCL’s operations.

Quite frankly, the demand for Kyari’s dismissal was a calculated attempt to undermine the considerable advancements made by NNPCL under Kyari’s direction. It was needless, premature, irrational, and without moral and legal support.

I believe Kyari should be commended for his leadership and quick turnaround of NNPC Ltd., as he increased crude oil output from 800,000 bpd to 1.6 million bpd instead of demanding his resignation.

In line with the President’s Renewed Hope Agenda, his relentless pursuit has led to the declaration of a state of emergency regarding the expansion in crude oil output.

Mal Mele Kyari is a committed public worker who works relentlessly for Nigeria’s oil and gas sector, and I can state this with confidence. He is a highly esteemed professional with no scandal during his tenure at NNPC Ltd. The past three years’ audited financial statements of NNPC Ltd. have been declared and published, demonstrating an unparalleled commitment to accountability and transparency under his leadership. All Nigerians should support this, as it is praiseworthy.

I could recall Kyari’s contribution to getting the final investment decision for the Train 7 development of the Nigeria LNG project approved after a four-year delay. They claim that after this project is finished, Nigeria’s gas exports will increase by 35%, greatly helping the nation.

Also, Kyari’s instrumental role in the passage and implementation of the Petroleum Industry Act, which has increased transparency, accountability, and investment in the industry, is unprecedented

I’d want to conclude by urging the executives of Kyari and NNPCL to stay committed to their jobs, especially the current refineries’ Turn Around Maintenance (TAM).

Additionally, I will strongly advise Mele Kyari and NNPC Ltd. to emphasize fulfilling the government’s fiscal revenue targets and follow stringent corporate governance guidelines that guarantee the country’s energy and fiscal stability.

Adewole Kehinde is a public affairs analyst and can be reached via 08166240846. email: kennyadewole@gmail.com