…FG denies ordering NNPCL to raise the price

 

 

 

Against the backdrop of a new increase in petrol price, marketers have adopted a wide range of price differentials nationwide with petrol stations owned by the Nigerian National Petroleum Company Limited, NNPCL, among the highest pump prices.

 

While Vanguard learnt that the latest upward adjustment has fixed the base price at N855 per litre, NNPCL Retail stations, especially in Abuja, are selling at N997, the second highest to some independent marketers selling at N1,018. But outside Abuja and Lagos, some independent marketers were selling as high as N1,300/ltr.

Moving across the cities of Abuja and Lagos, Vanguard saw filling stations displaying different prices with NIPCO adjusting from N700 to N955 per litre, Conoil from N660 to N940 per litre, and independent marketers from N930 to N1,018 per litre.

With the latest upward price review under President Bola Ahmed Tinubu, the price of petrol has now risen by over 355%, from N197 per litre on May 29, 2023, to N897 on September 3, 2024. The percentage increase is nearly 400% when considered the highest pump prices by independent marketers.

The latest increase, which took effect just two days after the company acknowledged owing suppliers approximately $6.8 billion, has triggered widespread condemnation across various sections of Nigerians.

Despite the new prices, queues at filling stations remained long yesterday evening, as many outlets were still without the product. This also fueled a thriving black market, with a litre selling at N1,500 in most locations in Abuja and Lagos.

NNPCL in conflicting messaging

When contacted by Vanguard, NNPC’s Chief Communications Officer, Mr Olufemi Soneye said he was not aware of any price increase.

“I’m not aware of this. Thank you for reaching out. I have no comment on the matter at this time. If there are any updates, I will make sure to inform you. I appreciate your understanding”, he responded via WhatsApp.

 

An unconfirmed trending message on social media platforms related to NNPCL Retail had earlier hinted of the petrol pump price. The message read: “Good Morning All, This is to inform you that NNPC Retail Management has approved an upward review of PMS pump price from N617/itre to N897/liter effective today, 3rd September 2024.

“Please ensure all your pumps and totems (price boards)/MIDs reflect the new PMS price of N897/liter. Thank you”.

Dangote fuelenters market

The price hike coincided with the start of petrol supply by Dangote Refinery to NNPC, with NNPC as sole off-taker of the product in the country.

Confirming the commencement of petrol production, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, said the refinery will begin with the supply of 25 million litres of petrol to the Nigerian market.

“The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September, and will subsequently increase this amount to 30 million litres daily from October 2024”, the Authority stated.

 

It also disclosed that NNPC Limited has reached an agreement to start crude oil sales and supply to Dangote Refinery in local currency.

Niger State groans

In Minna, Niger State, Vanguard gathered that the sudden hike in pump price of petrol greatly affected economic activities in the state as transport fares went up considerably.

Pump price at two NNPC mega stations along the Eastern bye-pass were dispensing to vehicles at N890 per litre but with long queues of vehicles waiting patiently for their turns.

However, other marketers most of which were, as at Monday morning, dispensing fuel, shut their stations while those selling were dispensing between N1,200 to N1,300 per litre. The hike led to increase in transportation by 100 percent which subsequently paralysed economic activities in Minna.

IPMAN emphasises product accessibility

Speaking on the development, marketers said while they are not opposed to the price hike, it is important that access to the product is open to all stakeholders.

 

Speaking to Vanguard,e Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, IPMAN, Chief Chinedu Ukadike, said marketers do not oppose the increase in pump price.
He however insisted that the product be made available to all marketers in the downstream sector.

The marketers also expressed dissatisfaction over the decision to make NNPC Limited sole off-taker of petrol from Dangote Refinery, stressing that the arrangement will create monopoly and profiteering.
He said: “The most important thing is that we are asking for availability. We are not against increase in fuel price as marketers but the most important thing is that let the fuel be available to us to buy.

“We think the arrangement between Dangote and NNPC that made NNPC the sole off-taker should be looked into. As major stakeholders and independent marketers, Dangote should be allowed to sell to us directly. The distribution should be opened up so that other stakeholders can buy the product like NNPC.

“This is because NNPC is also a competitor in the downstream sector and it is wrong to single out one competitor amongst others and sell petrol to him such that others will be dependent on one source. We think that this will bring monopoly, profiteering and stagnation in the petrol distribution process.

“It is pertinent that the Federal Government intervenes at this point. Let IPMAN be given the opportunity to also get their products directly because we can quickly distribute, we spread across the country and we are reliable”, he added.

 

On his part, the National President, IPMAN, Alhaji Garima Abubakar, stated: “We received the message early in the morning yesterday that an additional increase of N240 has been added to the previous price of N568 per litre.

“IPMAN do not have any objections to the increase as NNPCL claimed they were loosing money. We marketers have complied with the increment and also increased our prices at the pump,” he added.

Private depots shut

A visit to private depots in Lagos showed that no tank farm sold petroleum products yesterday. A marketer who spoke on condition of anonymity said that since NNPCL announced price increase, all depot owners in Lagos refused to sell products, claiming they were waiting to hear from NNPCL on pricing.

Labour demands immediate reversal

The Nigeria Labour Congress, NLC, yesterday rejected the new petrol pump price regime, rallying Nigerians against any further action of the government that can worsen the suffering and hardship across the country.

NLC in a statement at the end of its virtual National Executive Council, NEC, meeting yesterday, demanded “immediate reversal of the clandestine increase in the price of petrol.”

 

Among others, the communiqué signed by NLC President, Joe Ajaero, said: “The NEC rejects the hidden plan to increase the price of Petrol, PMS, and calls on all members of the NLC and the broader Nigerian public to remain vigilant and prepared to defend our rights and freedoms. The signs are ominous and the intentions are sinister as the State may be preparing to further increase the suffering of Nigerian workers and peoples. The Labour movement stands as the voice of the Nigerian people, and we will not relent in our efforts to uphold justice, fairness, and the rule of law.

“NEC-in-session therefore further demands the immediate release of all citizens from Prison who were protesting against hardship and hunger in Nigeria during the #EndBadGovernance protest.

“We also demand immediate reversal of the clandestine increase in the price of petrol. NEC–in-session demands a reversal of the hike in electricity tariff as we had originally demanded. We equally demand a halt to the indiscriminate arrests of citizens around the country for holding dissenting opinions.

“The Nigeria Labour Congress (NLC) remains committed to defending the rights and interests of Nigerian workers and the broader society. We will continue to stand firm against any attempts to undermine the Labour movement or infringe upon the rights of our leaders and members. We urge our Civil Society allies to continue increasing their support as we mobilise to nip the present incipient danger and undemocratic actions against our nation in the bud. A people united, can never be defeated! Workers united, can never be defeated.”

It’ll negatively impact manufacturers, worsen inflation – MAN

In his reaction, Director General of the Manufacturers Association of Nigeria, MAN, Segun Ajayi-Kadir, said the increase in pump price would negatively impact the manufacturing sector and worsen inflation.

 

His words: “In terms of what the impact might be and judging from what we have witnessed in the past, the cost of transportation may increase, and so would the prices of goods and services.
“These are pointers to the high possibility of a rise in inflation figures, impacting household budgets.

“One is naturally worried about the impact on the already lacklustre performance of the manufacturing sector. In particular, there is no doubt that it will add to production input and logistics costs.

“These will lead to higher prices and in the face of dwindling disposable income of the average Nigerian, a further deep in consumer demand will see manufacturers’ unplanned inventory rising and reduction in capacity utilization. “Manufacturing performance would be negatively impacted. Small businesses and households who use petrol fuel for daily activities would also take a hit.”

Similarly, National Secretary of the Small Scale Women Farmers Organisation in Nigeria, SWOFON , Chinasa Asonye, said: “The new fuel price will affect everything and there will be a price increase in everything. As a woman farmer, everything about our farming will increase because as of Monday, September 2, the feeds which we have already ordered have been increased and we do not know the reason for the increment until the news broke.

“These are feeds that we have paid for but because we did not take them from the company, they increased the price and told us that we are going to pay more before carrying our feeds. So, it will not be easy for the masses at all. Whatever will increase when it comes to fuel, will affect the livelihood of Nigerians.

 

“Is this how they want to reduce our hunger? Is this the reaction to the protest by the youths? Is this how this government wants to solve the problem of the masses? This will only aggravate hunger in the land. Agriculture will be affected badly and the cost of food will skyrocket. This simply means that masses’ voices are meaningless when it comes to governance in this country. Nobody is ready to listen to this groaning of the masses. This is cruel”, she lamented.

Also, President of Association of Professional Women Engineers of Nigeria, Lagos Chapter, Engr. Atinuke Owolabi stated: “We need to confirm the price from Dangote. I read that the Federal Government said they did not ask NNPCL to increase any fuel price. And I still do not know why NNPCL wants Dangote to supply them directly. Dangote should be distributed to everybody who wants to buy fuel. It is suicidal for NNPCL to be the sole distributor of Dangote fuel.

“We do not want monopoly again. Let Dangote distribute to all marketers. Let us all have access to the fuel because it belongs to us. It seems there are some cabals in NNPCL and we need to be very careful.”

Ports community warns of grave implication

On his part, Chairman of the Nigerian Port Consultative Council, NPCC, Mr. Bolaji Sunmola, warned that government with the latest action was calling for a protest, adding that Dangote Refinery should be encouraged to bring down the price of petrol.

Similarly, President of the National Council of Managing Directors of Licensed Customs Agents, NCMDLCA, Mr. Lucky Amiwero said that the development will further improve the economic situation, especially Nigerians working within and around the maritime industry.

 

Amiwero also said that it is either the government is confused or that government is not saying the truth about the issue of subsidy.

He said: “Many people in the port industry have been finding it difficult to come to work because of the issue of fuel scarcity and now this additional burden of increase in pump price of fuel.

This will further make Nigerians lose their jobs, adding that a country with the raw material for the production of petroleum products should not be going through this kind of hardship.

“Many workers have not been coming to work for now especially in port operations Many people have lost their jobs.”

Analysts list economic consequences

Reacting to the hike in petrol prices, Clifford Egbomeade, a public affairs and communications expert, stated: “The increase in fuel prices to N855 per litre, as announced by NNPCL, is a significant development with far-reaching implications for both the economy and the average citizen. Although this drastic increase is part of the broader context of subsidy removal, it also presents severe challenges for an economy heavily reliant on fuel for both transportation and power generation.”

 

Commenting on the economic impact, he added: “The most immediate effect of the fuel price hike is on inflation. According to the National Bureau of Statistics, the headline inflation rate rose to 34.19% in June 2024, up from 33.95% in May. With higher fuel prices, transportation costs have surged, leading to increased prices for goods and services across the board. This has further exacerbated existing inflationary pressures, potentially driving inflation rates even higher and making everyday essentials less affordable for Nigerians.

“The hike will also raise the cost of living. As fuel prices climb, so too will the costs of transportation, food, and other essential commodities, straining household budgets. With over 40% of Nigerians living below the poverty line, according to the World Bank, this increase will likely push more people into poverty as they struggle to afford basic necessities.

“The business sector is not immune to these effects. SMEs, which constitute a significant portion of Nigeria’s economy, will face higher operational costs due to increased fuel expenses. This could lead to reduced profitability, job losses, and, in some cases, business closures. Larger
corporations may pass on these increased costs to consumers, further fueling inflation. Public transportation costs are expected to rise sharply, affecting mobility as many Nigerians may find it difficult to afford daily commutes. The fuel price hike could also trigger social unrest, as seen in past protests sparked by economic grievances.”

The government should also introduce price control mechanisms on essential goods and services to prevent excessive price hikes and strengthen consumer protection agencies to monitor and enforce fair pricing practices.”

New price still below market rate – expert

In an interview with Vanguard, Professor Emeritus in Petroleum Economics & Policy Executive Director, Emmanuel Egbogah Foundation, Abuja, Wumi Iledare, said: “There are two inflation categories—demand pull and cost-push. Nigeria suffers from both types. Increasing wages and prices of raw materials do lead to higher inflation. So increasing the price at the pump will in the short run lead to rising price levels in the economy.

 

“Unfortunately, it is a dilemma to charge a price below the clearing market price because of the fear of inflation, and this anxiety is legitimate. But not doing the needful now is postponing the evil days.

“N897 per litre is still below the market clearing price of PMS. Just look at the price of AGO. The gap is still neither incomprehensible nor justifiable. The positive side at the moment is the current price setting by the dormant retail firm is helpful to Dangote optically within the context of the entitled Nigerians for freebies.

“Interestingly, however, pricing below the market clearing price will lead to shortages and black market structure. I don’t expect to price its wholesale price too far below N1,000, which is, perhaps, a little below the current landing cost, in my opinion.

“The consequences of pricing below the market clearing price is as negatively impactful as inflation in any economy.”

FG denies ordering NNPC to raise fuel price

Meanwhile, reacting to reports in online platforms that he ordered NNPC to sell petrol above N1,000 per litre, the Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri described the reports as malicious.

 

The Minister in a statement by his media aide, Nnemaka Okafor, said NNPC operates as an independent company, adding he does not direct NNPC on issues of pricing.

“We categorically condemn these claims as baseless, malicious, and a deliberate attempt to incite public discontent. We challenge anyone in possession of any evidence — be it written documents, audio, or video recordings — that supports these fabrications to make it public. Such a claim is entirely devoid of truth and should be recognized as an intentional effort to mislead the public.

“It must be stressed that NNPCL operates as an independent entity under the Companies and Allied Matters Act (CAMA), with a fully empowered Board of Directors. The Ministry of Petroleum Resources does not, and will not, interfere in the internal decisions of NNPCL, including pricing matters.

“The public is hereby strongly advised to dismiss these malicious rumors. The Honourable Minister cannot, and does not, direct NNPCL or any other entity within the sector to manipulate prices.”

Depots, many stations shut in Lagos, environs

In Lagos, a visit to Satellite and other depots, yesterday, indicated that they were shut because of uncertainty over pricing.

 

Operators, who spoke anonymously to Vanguard, said the depots would re-open for business as soon as they are briefed on the new depot price and other details.

But many stations, especially independents were shut, due to lack of stock, thus leading to the emergence of long queues at the NNPC and major marketers’ outlets.

Many illegal operators also cash in on the confusion to hawk petrol in cans at the cost of between N1, 200 and N1,500 per litre in different parts of Lagos, especially Maryland, Ikorodu Road and Ikoyi.

Transporters that managed to buy the product passed the high cost to commuters, who were compelled to high fares.

Specifically, transport fares have risen by more than 100 per cent to N3,000 to commute from Victoria Island to Mile 2, a distance that used to cost about N1,500 before the latest fuel price hike.

 

Not palatable for Nigerians, but govt has no choice – CPPE

Reacting, the CEO of the Centre for the Promotion of Private Enterprise, CPPE, Dr Muda Yusuf, said: “The reality is that this is a very difficult situation for the government and NNPCL. And I hope that as citizens, we should show some understanding at this time.

“As we speak, even at the price of N650 to N700, the government was incurring a subsidy of about N500 per litre, and we had continued on that trajectory, at the end of the year, the subsidy bill be incurring will be close to N8 trillion to 10 trillion. The fact is that this is not sustainable.

“The subsidy bill increased because of the depreciation of the currency, and the relative gap between the domestic price of petrol and the price in the sub-region, especially our neighbouring countries which has widened considerably. Petrol cost per litre in our neighbouring countries is between N1,300 and N1,500 equivalent. So you can imagine the incentive for smuggling.

“However, it would be unfair to put the blame entirely on the current administration.

“Most of the underlying problems around fuel pricing are legacy problems. “The increase is not palatable for the citizens and the private sector. But this is an extremely difficult decision that the government needs to make.”

 

Netizens react

Netizens also took to social media yesterday, with many criticising both the NNPC and the Federal Government.

One commentator, Daniel, expressed his disappointment, saying, “Lol… seems this is just the beginning. They are even proposing 10% VAT and it may happen anytime. I didn’t (and still don’t) support Tinubu, but never in my wildest dream did I think he’d be worse than Buhari.”

Another user, who identifies as Chase, criticized those still supporting the government, remarking, “well, while the wailers are wailing, let the praise singers continue to sing their praises to Agbado… I hope the paid e-rats like terrorists Macido, sim card chucks etc will ask for a pay raise from their paymaster. Jungle don continue to the RED!!!”

Despite the overwhelming negativity, some netizens attempted to adopt a more optimistic view. A commenter named “One God” acknowledged the severity of the situation but remained hopeful, stating, “I know this government meant to run a sustainable system. The gravity of the problem is enormous. But with the grace of God, our government will win.”

In a more sarcastic tone, a user named Judeskyla Bardooo suggested an alternative to coping with the high fuel prices, saying, “Everybody should buy a bicycle. It is a recommended mode of transportation because of its health benefits. Asiwaju is committed to keeping everyone healthy.”

 

Finally, another user who goes by ‘My Opinion’ condemned the NNPC as part of Nigeria’s systemic issues, stating, “NNPC is a very corrupt organization. They are part of the people dragging Nigeria backwards.”

The recent price hike has fueled concerns about the increasing cost of living in Nigeria, with many worried about how this will impact everyday life, including transportation and the cost of goods and services.

President Bola Tinubu and Chinese President Xi Jinping, on Tuesday in Beijing, China, announced the elevation of Nigeria-China ties to that of a comprehensive strategic partnership.

The leaders also agreed to build a high-level Nigeria-China community with a shared future.

This was the outcome of talks between the two leaders during President Tinubu’s official visit to China.

President Tinubu’s official visit precedes his participation in the 2024 Summit of the Forum on China-Africa Cooperation, scheduled to hold from September 4-6, 2024.

''This is an important visit for Nigeria and the rest of Africa, as I arrive in my capacity as the Chairman of ECOWAS. I thank you for the high-level of honour accorded to us.

''Relations between China and Nigeria have indeed lasted for over half a century and should be further strengthened to advance our trade and economic development programmes.

''Nigeria holds great potential as the country with the largest population in Africa and is the biggest economy with a very young population that can drive economic growth and cross-sectoral programmes.

''We have upgraded the relationship to more than what is just strategic -- but a comprehensive developmental partnership.

''This comprehensive strategic partnership should result in robust development, stability, and security in the West African sub-region. This is very crucial,” President Tinubu said.

On economic reforms in Nigeria, President Tinubu told his Chinese counterpart that his administration remains committed to sustainable growth through the effective implementation of ongoing economic reforms.

''We believe that President Xi has demonstrably reformed the Chinese economy, and our reform programme in Nigeria is on a similar course. I am a reformer with verifiable antecedents.

''We have recognized the need to reform our economy, and we are doing so diligently across tax and tariff reviews, to various other segments of our nation's economy.

''Trading and investment partners will have easy access to bring in their investments and seamlessly take their resources out,'' the President stated.

In his remarks, President Xi noted the strong mutual understanding between Nigeria and China since the establishment of diplomatic ties over the past 50 years.

''We have found the path of seeking collective strength, through unity, and win-win cooperation.

''China and Nigeria, as major developing countries, strengthening strategic coordination, will inject fresh impetus to China-Africa relations in the new era and spearhead common progress among Global South countries,'' President Xi said.

According to the Chinese leader, the 2024 FOCAC Summit provides an opportunity to reflect on mutual friendships and advance the consolidation of China-Africa relations.

He pledged that China and Nigeria would continue to work closely within the FOCAC framework as a model of cooperation between nations.

During the meeting, both presidents witnessed the signing of several Memoranda of Understanding (MOUs) on various areas of mutual interest:

(1) Cooperation plan between Nigeria and China on jointly promoting the Belt and Road Initiative

(2) Memorandum of Understanding on cooperation in the peaceful application of Nuclear Energy

(3) Memorandum of Understanding on strengthening cooperation on Human Resource Development under the Global Development Initiative

(4) Memorandum of Understanding on Media Exchange and Cooperation

(5) Memorandum of Understanding between China Media Group and the Nigerian Television Authority

Earlier, on Monday in Beijing, President Tinubu visited the China Railway Construction Corporation (CRCC), during which he acknowledged the company's role as a reliable partner in Nigeria's infrastructure development programme, commending its ongoing railway projects in the country.

''It is equally very important that we give assurances to the Nigerian people across our local communities that the Ibadan-Abuja-Kaduna-Kano railway segments will be completed and done to the satisfaction of Nigeria and West Africa at large.

''We will support your investment in solid minerals and other ventures in Nigeria. I am here to assure you that Nigeria is ready to do business with you,'' the President said during a meeting with the Chairman of CRCC, Mr. Dai Hegen, following a tour of the CRCC and China Civil Engineering Construction Corporation (CCECC) office in Beijing.

Mr. Hegen informed the President that CRCC has been involved in Nigeria for 43 years, implementing over 300 projects and training over 100,000 local workers.

''The Abuja-Kaduna Railway and Lagos-Ibadan Railway have transported approximately 9 million passengers and 180 tonnes of cargo. The Lagos blue line has transported over 1.6 million passengers,'' he said.

In a separate engagement, President Tinubu visited Huawei Technologies' Beijing Research Centre, where the company announced the launch of DigiTruck, a mobile ICT classroom aimed at enhancing digital literacy in underserved Nigerian communities.

During the President's meeting with Huawei's leadership, led by Mr. Liang Hua, Chairman of the Board of Directors, the company said the initiative would operate in 10 states annually, training at least 3,000 students each year.

Acknowledging the ongoing efforts by Nigeria's Ministry of Communications, Innovation and Digital Economy to train 3 million technical talents (3MTT) and equip the country's young population with the skills necessary for present and future economic opportunities, Huawei's leadership said the DigiTruck initiative will complement the programme.

Mr. Hua praised the President's Renewed Hope Agenda for identifying digital technology as a critical driver of economic growth.

"This is very encouraging for us. Huawei is fully prepared to offer its ICT expertise and become a reliable partner of the Nigerian government to support the country in achieving its policy objectives and furthering its digital, intelligent, and low-carbon development."

Also speaking, Mr. Chris Lu, Chief Executive Officer of Huawei Nigeria, expressed support for Nigeria's National Talent Export Programme (NATEP), an initiative that seeks to position Nigeria as a hub for talent outsourcing in Africa.

"In the future, we hope to continuously develop the NOC and expand its capacity so that it can meet the requirements of more African markets, thus facilitating more Nigerian technology talents in serving more overseas' markets and helping to achieve the goal of NATEP," Mr. Lu said

During the tour of the Huawei Research Centre’s exhibition hall, President Tinubu and his delegation were introduced to Huawei's latest innovations in e-government, smart education, smart grid, and solar power, demonstrating their potential to enhance public services, digital governance, and Nigeria's inclusive development agenda.

As part of the efforts to achieve the aforementioned goals, Huawei also plans to establish a joint PV test lab with Nigeria's Rural Electrification Agency (REA).

Chief Ajuri Ngelale

Special Adviser to the President

(Media & Publicity)

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Corporation Limited (NNPCL) have finally agreed to sell crude oil to the Dangote refinery in naira.

NMDPRA announced that the Dangote refinery will provide 25 million litres of fuel each day starting in September 2024.

Naija News reports that this announcement follows the initiation of petrol production at the Dangote refinery.

This initiative aligns with the recent endorsement by the Federal Executive Council (FEC) to conduct transactions involving crude oil sales to the Dangote refinery in naira and purchase petrol products from the refinery in the local currency.

“At the NMDPRA headquarters in Abuja, NNPCL reached an agreement to commence crude oil sale and supply to Dangote Refinery in local currency.

“The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September. And will subsequently increase this amount to 30 million litres daily from October 2024,” NMDPRA said.

Earlier today, the CEO of Dangote Refinery, Aliko Dangote, stated that the agreement to sell crude oil to his refinery in naira, initiated by President Bola Tinubu, is expected to alleviate pressure on foreign exchange by a minimum of 40%.

He thanked President Bola Tinubu and his administration for implementing this strategic initiative.

“I want to personally also thank Mr. President for creating this idea of Naira for Crude and also Naira for the product. This will give a lot of stability for the Naira because you remove 40% of the demand of the dollars in the market. That’s not only it.

“Today’s discussion is only to thank God almighty for bringing us into this period of now producing gasoline. I know that a lot of people think we won’t be able to deliver. But we’ve been able to deliver,” Dangote said.

Femi Otedola, billionaire businessman and chairman of FBN Holdings, has congratulated Aliko Dangote on the commencement of petrol production at his refinery. 

During a news conference on Tuesday, Dangote announced the start of petrol production at the Dangote refinery, proudly displaying a bottle of the product.

Subsequently, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said the refinery is expected to supply 25 million litres of petrol daily in September.

The  650,000 bpd capacity refinery began operations in January with the production of diesel and aviation fuel.


Dangote said the petrol from the plant, in terms of quality, can compete with products from other refineries across the world

In a post on X on Tuesday, Otedola described the milestone as a “monumental achievement” under President Bola Tinubu’s administration.

Reflecting on their efforts to invest in the state-owned refinery, which were ultimately rejected, Otedola expressed joy that the Dangote refinery has finally become a reality.

 

“It has been 25 long years since we first set our sights on transforming Nigeria’s energy landscape. I remember vividly when we set up the Blue Star Consortium to acquire stakes in the Kaduna and Port Harcourt refineries—20% for me and 51% for you,” the post reads.

“We were ready to change the game, but fate had other plans. The government of the day, in an act I can only describe as utterly obnoxious, cancelled our stakes and thwarted our vision. But, as always, you refused to be deterred. You never gave up on the dream we shared.

“You carried the torch forward, igniting a spark that has today become a roaring flame. And now, 25 years later, here we stand on the precipice of history, with the first fuel shipment from the Dangote Refinery—a feat that is nothing short of miraculous.

“While the Kaduna and Port Harcourt refineries have remained dormant, their promise unfulfilled despite billions of dollars spent on so-called turn-around maintenance, you have achieved what many said was impossible.”

 

‘YOU’VE SILENCED NAYSAYERS’ 

Otedola said Dangote has “beaten all the sceptics, silenced the naysayers, and proved wrong” those who doubted his resolve and “never wanted this project to succeed”.

The billionaire said the refinery has liberated Nigeria “from the chains of economic dependence that have held this nation back for far too long”, adding that the days of “bowing to foreign powers for our fuel needs are over”.

“You have dealt a death blow to the so-called local cabals who have fattened themselves for years, feeding off our nation’s economic slavery,” the post adds.

 

“These cabals, who have grown rich by keeping Nigeria in a perpetual state of dependence, must now face the reality that their era of easy gains is coming to an end.

“I am reminded of the time you revolutionized the cement industry in Nigeria. Ships that once brought in cement turned into rusting relics, scraps of a bygone era.”

 

Otedola said with the refinery in full swing, he foresees a similar fate for fuel imports.

“The depot owners should take heed—it’s time to dismantle those depots and sell them as scraps while the market is still high,” Otedola said.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the Dangote refinery is expected to supply 25 million litres of petrol daily this month.

Speaking in a social media post on Tuesday, the authority said The Nigerian National Petroleum Company (NNPC) Limited has agreed to supply crude oil to the refinery in naira.

“At the NMDPRA headquarters in Abuja, NNPCL reach an agreement to commence crude oil sale and supply to Dangote Refinery in local currency,” the authority said.

“The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September. And will subsequently increase this amount to 30 million liters daily from October 2024.”

The Dangote refinery officially began petrol production on September 3.

This is comes months after its initial announcement to begin production of the commodity, also known as premium motor spirits (PMS).

On May 18, Aliko Dangote, chairman of Dangote Industries Limited (DIL), had said the refinery would begin to produce petrol from June, adding that Nigeria would not have to import the product again.

However, in June, the business mogul said due to a minor delay, the refinery would commence petrol supply in July.

Still, production did kick off in July as planned, as Dangote refinery announced a shift to August.

On August 14, reports had claimed that the delivery date of the petrol supply had been postponed, but Anthony Chiejina, chief branding and communications officer of Dangote Group, denied the reports.

On July 29, the federal executive council (FEC) had approved a proposal by President Bola Tinubu directing the NNPC to sell crude oil to Dangote refinery and other refineries in naira.

It is not yet Uhuru for Nigeria when it comes to resolving the rising food crisis in the country, as newly released data from the National Emergency Operations Center (NEOC), says increasing flood levels have affected no less than 115, 265 hectares of farmlands In Nigeria.

A breakdown of the affected states revealed that Bauchi recorded the highest affected farmlands with 50, 343 hectares, Taraba with 22, 182 hectares, Jigawa with 9, 919 hectares, Niger with 9, 488 hectares, and Sokoto, 8, 676 hectares.

Other states affected by the flooding are Adamawa with 3, 392 hectares, Bayelsa 170 hectares, Borno 313 hectares, Ebonyi 100 hectares, Enugu 953 hectares, Gombe 1, 311 hectares, Kaduna 120 hectares, Kano 3, 072 hectares, Katsina 37 hectares, Kebbi 3, 382 hectares, Yobe with 223 hectares, and Zamfara with 1, 584 hectares.

The report on the 2024 flood by the centre also said 29 states of the federation, 154 local government areas, 611, 201 persons have been affected, 225, 169 persons displaced, 83, 457 households affected, 201 lives lost, and 2,119 injuries have been recorded so far during this year’s flooding.

The new flood data comes on the heels of recent food shortages in the country, and food inflation put at over 40 per cent by the National Bureau of Statistics (NBS).

Nigerians To Spend 54.9% Income On Food In Next Six Months

On Monday, a Central Bank of Nigeria’s survey said rising inflation rate will force Nigerian households to spend the largest amounts of their earnings on food in the next six months.

According to the CBN report, the poll was conducted from July 22 to 26, 2024, with a response rate of 99.7 per cent with its sample size drawn from the NBS master sample list of 1,665 households in the 36 states of the federation and the Federal Capital Territory.

The report, Household Expectation Survey published on its website, CBN said many Nigerians intend to cut down on items that are not essential now, in the next three and six months.

They, however, plan to spend 54.9 per cent of their income on food items in the next six months.

“Spending outlook for the next six months showed that consumers plan to spend a substantial amount of their income on the following items: food and other household Items (54.9 points), education (35.4 points), transportation (30.2 points), electricity (20.0 points) and medical expenses (12.2 points),” the poll shows.

On the flip, the respondents do not plan to spend a substantial amount of income on big-ticket items such as the purchase of a house, car and household appliances.

Also, Nigerians do not intend to spend on investment, such as acquiring landed properties or other forms of investments. They equally do not plan on saving their incomes.

“This reflects their family financial situation in the current month and reaffirms their stance that they will be drawing down on their savings or getting into debt,” the apex bank survey shows.

Looting Of Warehouses, Food Trucks In North-East

Food crisis in the country had pushed residents in the north, to engage in looting of warehouses and food trucks, a move which had caused a source of concern in the country.

Chairman, the North-East forum of the DSS, Babagana Bulama while speaking at the 15th conference of the North-East directors of the state services at Damaturu, Yobe State recently, said the rising prices of goods has motivated hoodlums to take advantage of the crisis to attack warehouses, and vehicles with goods, particularly foodstuff being transported from one state to the other.

He said; This edition is taking place at a time when the insecurity of the nation bothers on criminality, especially the trace of Book Haram insurgency, banditry and kidnapping which have been on the forefront, now overtaken by social securities issues comprising of food crisis, to hoarding of foodstuff, hunger in the land, starvation and renewed threats of protests by organised labour groups such as the Nigerian Labour Congress, and others.

“Similarly, the rising prices of goods have motivated hoodlums to take advantage of the challenges to attack warehouses, and vehicles with goods, particularly food stuff being transported from one state to the other. The situation is also being exploited by economic saboteurs who are bent on destroying the economy. It is pertinent to mention that all this is happening barely a year after the 2023 general election.”

Army Deploys Officers To Protect Farmers In The North

The Nigerian Army said it has deployed troops in several northern states, to protect farmers.

A recent statement by the Director of Defence Media Operations, Maj. Gen. Edward Buba said the deployment was made particularly in the North West and the North Central states.

Govt Moves To Curb Crisis

The Federal Government in the wake of the galloping prices of essential commodities reeled out a raft of measures to address the challenge.

It recently suspended duties, tariffs, and taxes on the importation of maize, husked brown rice, wheat, and cowpeas through the country’s land and sea borders, for 150 days.

It also approved the procurement of 2,000 tractors, and 1,200 trailers and set up a committee to help proffering solutions to the food crisis rocking the nation.

Expect Bumper Harvest, Agric Minister Assures Nigerians

The Minister of Agriculture and Food Security Abubakar Kyari says the country is expecting a bumper harvest before year-end.

While speaking last month, Kyari said the Federal Government had measures in place to address the situation including ramping up farming which would increase food production.

“It [bumper harvest] is about October-November this year. That’s when we are going to have the harvest. We are expecting a bumper harvest baring any natural issues,” Kyari said on Channels Television’s Sunday Politics.

“Well, I am just giving you the assurance that we will have a bumper harvest,” he said.

According to him, one of the reasons for the acute food shortage in the country at the moment is also linked to seasonal reasons.

“The season we have here is a critical issue we have in agriculture. This is what we call the lean season and this is between June-July and the next harvest,” the minister said.

Apart from this, Kyari attributed the food shortage to other issues such as reduced landmass, flooding, and others.

“The shrinkage of land mass for agric, flooding, habitation problems, and insecurity…An ageing farming population; younger people are not going into agriculture now,” he said.

Kyari said the government is further ramping up moves for mechanised farming with the distribution of fertilizers to farmers and efforts to purchase tractors.

“We have ordered. It’s not like chewing gum; you can’t buy it off the shelf. I went to Belarus and ordered 200 tractors and 9,000 other implements,” the minister said on the current affairs show.

“The basic implement for farming in Nigeria is a hoe, which is archaic and antique. That’s why we are talking mechanisation,” said Kyari.

President Bola Tinubu has approved that the Inspector General of Police (IGP), Kayode Egbetokun, remain in office until 2027.

Against the backdrop of reports that his tenure was extended, a senior police source, who requested anonymity, clarified that the letter was not an extension but rather a confirmation that he should complete the four-year tenure as originally stated in his letter of appointment.

The source said, “The tenure of the IGP was not extended but rather a clarification on his letter of appointment that stipulated four years in office.”

In July, the National Assembly passed the Police Act Amendment Bill to enable a person appointed to the office of Inspector General of Police (IGP) to remain in office until the end of the term stipulated in the letter of appointment.

President Tinubu forwarded the Bill to the House of Representatives and Senate to amend the tenure of the IGP.

The Bill was expeditiously passed by lawmakers in both green and red chambers. The upper and lower chambers passed the bill at separate sittings.

The President appointed Egbetokun as the IGP in June 2023 for four years. He was appointed alongside four new service chiefs.

According to Section 18(8) of the Police Act 2020, Egbetokun, who was born on September 4, 1964, is expected to retire in September 2024, when he clocks 60.

At the moment, Egbetokun has been in office for one year and three months, with two years and nine months remaining of his four-year appointment.

The controversy about the tenure of IGP didn’t start with the current police boss. That of Egbetokun’s predecessor, Usman Baba, was not in any way different. Baba clocked 60 years old in March 2023 and attained the mandatory 35 years of service but he remained in office till Tinubu appointed Egbetokun as his replacement three months later.

After over a year of its launch in May 2023, Dangote Refinery, on Tuesday, rolled out its first Premium Motor Spirit (PMS), also known as petrol, from its 650,000 barrels per day facility.

At a press conference, owner of the Lagos-based refinery and billionaire businessman Aliko Dangote declared that “it’s a celebration day” for Nigerians.

He assured all citizens that they “are now going to have good petrol while the engines of your vehicles will last longer. You will not be having an engine issue, which a lot of us were having. It won’t happen at all.”

“The quality here will match that of anywhere in the world; US, America, we will make sure that nobody will beat us in terms of quality,” Dangote said.

 

 

‘We’ll Save Forex’

The refinery owner said as soon as his company finalises modalities with the Nigerian National Petroleum Company Limited (NNPCL), the product will hit the market.

“As soon as we finalise with the NNPCL, our product will start going into the market.

“We will help to restore industry and manufacturing. We will begin real import substitution, which is what we have, you know, saving foreign exchange, earning foreign exchange, which will stabilise the naira, and it will also help bring down inflation and cost of living,” he stated.

Last December, Dangote, Africa’s leading industrialist, commenced operations at his $20bn facility sited in Lagos with 350,000 barrels a day.

The refinery, which was initially bogged by regulatory battles, hopes to achieve its full capacity of 650,000 barrels per day by the end of the year.

The refinery has begun the supply of diesel and aviation fuel to marketers in the country and now petrol.

NNPCL Debt Challenge

The rollout of petrol by the Dangote Refinery followed the admission by the NNPCL that it owes “significant debt to petrol suppliers” and this poses a threat to the sustainability of fuel supply.

There have been reports that a $6 billion debt the NNPCL owes petrol suppliers has worsened petrol scarcity in Nigeria, a perennial feature since the beginning of 2024.

At different times, the NNPCL blamed logistics challenges, and flooding, amongst others for the supply shortages of the essential commodity.

However, in a statement on Sunday, NNPCL spokesman Olufemi Soneye said “this financial strain has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply”.

Nigeria, Africa’s most populous nation, faces energy challenges, with all its state-owned refineries non-operational. The country is heavily reliant on imported refined petroleum products, with the state-run NNPC being the major importer of the essential commodities.

Fuel queues are commonplace in the country. Prices of petrol tripled since the removal of subsidy in May 2023, from around ₦200/litre to about ₦800/litre, compounding the woes of the citizens who power their vehicles, and generating sets with petrol, no thanks to decades-long epileptic electricity supply.

The government simultaneously unified forex windows, with the value of the naira nosediving terribly from $1/₦700 to over $1/₦1600 at the parallel market. Prices of food and basic commodities immediately climbed through the roof as Nigerians battled attendant inflation.

Media

The Chairman of the Presidential Committee on Fiscal Policy, Taiwo Oyedele, says his committee has advised the Federal Government to remove taxes on food, public transportation, house rents, and other necessities critical to Nigerians’ well-being.

Oyedele stated this on Channels Television’s Politics Today programme on Monday.

He said the proposal also includes the exemption of value-added tax (VAT) on these necessities.

Oyedele said the proposal would soon be signed by President Tinubu before being sent to the National Assembly to become part of Nigeria’s tax laws.

He said, “What we have taken into account is what are those necessities of life—food, accommodations, transportation, education and health. We’ve deliberately identified those items. And we’ve removed almost all the taxes applicable to them, including no VAT.

“We think that from the fiscal policy and tax perspective, we can make it more affordable for the Nigerian people to be able to afford those necessities. Share-passenger transportation is completely tax-free.

“However, if you hire a taxi, we assume that you’re not the poorest Nigerian so you have to pay the tax. Whereas if you get into a bus, that will be completely tax-free. That’s what we’ve done so far.”

Kano residents are facing a new wave of fuel price hikes as Premium Motor Spirit (PMS), commonly known as petrol, soared to ₦1,200 per litre at several filling stations across the city.

According to Daily Trust, the development comes as the Nigerian National Petroleum Company Limited (NNPCL) adjusts its pump prices to ₦904 per litre.

The surge in fuel prices has led to long queues at NNPCL outlets, where customers are scrambling to fill their tanks before the new price is fully implemented.

An official at one of the NNPCL stations, who preferred to remain anonymous, confirmed to the platform that they were awaiting directives to commence sales at the updated price.

This spike in fuel costs has further strained the pockets of Kano residents, many of whom are already grappling with the high cost of living.

The situation has also sparked concerns about the potential impact on transportation costs and the prices of goods and services, which are likely to rise as a result.

He said, “We just came this morning (Tuesday) and turned on our machines only to see the adjustment. You can see it for yourself. We are here now waiting for directives to start selling.”

Motorists in queue expressed concerns over the development.

Isah Muhammad said, “Where are we heading to in this country? How do we survive now? It’s very unfortunate we are witnessing this.”

Another motorist, Ibrahim Saleh, said, “I can recall when I used to sell petrol (black market). It was then ₦95. One day during the late President Shehu Musa Yar’adua regime, we went to buy fuel and they halted the process.

“We all thought it was going to be increased but they adjusted the litre to ₦65. It was something that I would never forget in my life. When things go up, they never come down in Nigeria and since then it has been like that.”