Tuesday was a historic day for Dangote Refinery as it commenced the production of premium motor spirit otherwise known as petrol giving Nigerians hope that the problem of perennial scarcity of the product and long queues at filling stations would become a thing of the past. Dangote refinery will be the first to work in
Tuesday was a historic day for Dangote Refinery as it commenced the production of premium motor spirit otherwise known as petrol giving Nigerians hope that the problem of perennial scarcity of the product and long queues at filling stations would become a thing of the past. Dangote refinery will be the first to work in Nigeria since 1996.
Before Nigerians could pat themselves on the back for the new achievement, that celebration was truncated prematurely with adjustments in pump prices of petrol from N618 to N950 per litre at some NNPC outlets and the mood changed from joy to sad. It became a situation of a forlorn hope.
Since its commencement of production, Dangote Refinery has been trending on the internet with debates on its prospects for the economy especially on the volatile petrol supply chain in Nigeria. and will be selling Petrol to the public. It is expected that this would bring down drastically the pump head price of petrol if not restore it to the pre “subsidy is gone” regime price. But there appear to be more complications. NNPC will be the exclusive buyer of all Dangote’s fuel and will dispense it through its various outlets. Another monopoly?
Dangote Refinery’s executives at a press briefing on Tuesday said that they were waiting for the federal government to agree on the selling price, this was yet to materialise when the NNPCL announced a new price regime of petrol across Nigeria. The steep increase in the price shattered hope rather than renewing it. Many were thrown into frustration knowing full well the spiralling effect the increase would have on the cost of transportation and other consumer items including foodstuff.
Not prepared to be caught unawares, the Vice President of Dangote Refinery hinted that should any sabotage arise, and no one buy from the company, they will proceed to export their product, after all, they export their diesel and jet fuel. The NNPC has reached an agreement with Dangote to supply the company with crude in Naira, a total of 25 million barrels of crude, and 30 million barrels next month.
The refinery is expected to produce 650k litres of fuel per day. However, the NNPCL has failed to provide them with enough crude oil, which resulted in the delay in the commencement of their operation. NNPC being an exclusive buyer means that they will reach an agreement with Dangote prompting them to only purchase PMS from Dangote for an agreed period.
NNPCL announced it was in serious international debt which has affected its supply chain and triggered nationwide scarcity of fuel. Dangote could be the beneficiary of this financial challenge by the NNPCL. They both must collaborate for Nigeria to reap maximum benefit from its oil resource, be competitive and out of the woods. This is where the government has a role to play by moderating their relationship to national advantage.
In July the NNPCL accused Dangote Refinery of seeking an oil monopoly with poor fuel quality. But Dangote responded yesterday with a sample of its petrol product describing it as the cleanest form of petrol comparable to other world standards. He threw shade at the NNPCL by telling Nigerians that the quality of petrol hitherto being imported was impure and responsible for damages to their vehicles.
Dr Aliko Dangote used the opportunity to show Nigerians that the real colour of quality fuel is “colourless”, like water. And he assured Nigerians that, this is what they will be getting from his refinery, unlike the bad product that has been circulating the country for nearly three decades. He also assured Nigerians that his company has the best laboratory for testing of petroleum products in Nigeria.
Nigeria Labour Congress Laments: “We Feel Betrayed”
Following the new regime of PMS pricing, there has been an outrage of condemnations from Nigerians who have described the government as insensitive to the pains that they are being made to go through since the removal of subsidies has added to their burden.
In one such reaction, the Nigeria Labour Congress accused the government of a betrayal of their mutual agreement upon which they accepted a minimum wage of N70,000.00 per month. In a terse statement, the NLC President said:
“We are filled with a deep sense of betrayal as the federal government clandestinely increases the pump price of PMS. One of the reasons for accepting N70,000 as the national minimum wage was the understanding that the pump price of PMS would not be increased even though we knew that N70,000 was not sufficient.
“We recall vividly when Mr President gave us the devil’s alternatives to choose from: either N250,000 as minimum wage (subject to the rise of the pump price between N1,500 and N2,000) and N70,000 (at old pms rates), we opted for the latter because we could not bring ourselves to accept further punishment on Nigerians.
“But here we are, barely one month after and with the government yet to commence payment of the new national minimum wage, confronted by a reality we cannot explain. It is both traumatic and nightmarish.
“Yet, when we told the government that its approach to resolving the fuel subsidy contradictions was patently faulty and would not last, its front-row cheerleaders sneered at us, saying we did not understand basic economics.
“But if truth be told, this act of betrayal is consistent with the character of this government. We recall the assurances we were given by the leadership of the National Assembly on the 250% tariff hike, that it had been dealt with and there was no need to openly engage the Minister of Power who was at that meeting.
“Instead of the promised reversal, the rate has since been jerked up further putting more Nigerians and businesses in jeopardy. The combined effects of the government’s ferocious right-wing market policies brought Nigerians and Nigeria to their all-time low and led to the End-Hunger/End Bad Governance protests.
“Rather than make amends, the government arrested and hounded into detention some of those who took part and some of those who had nothing to do with these protests, charging them with criminal conspiracy, subversion, treasonable felony, terrorism financing and cybercrime with an intent to overthrow the government of President Tinubu.
“The police and other security agencies have since been on a rampage terrorising the citizenry in pursuance of the government’s agenda of muzzling lawful dissent.
“In brazen pursuit, they have defamed and libelled not a few individuals. They have gone as far as appropriating the statutory roles of the Ministry of Labour and Employment in resolving trade dispute matters and issues considered outside the jurisdiction of the security agencies.
“That the government is on a rampage in the face of stifling conditions of living is an understatement, but we promise Nigerians that we at the Nigeria Labour Congress will not be cowed into submission. Together with civil society, we brought about this democracy when some of the actors in power today were conspiring with the military on how to perpetuate their hold on political power.
“When the State and the security forces picked on us in a hybrid war, we had our suspicions. We knew they were up to something sinister and needed to distract/divert our attention or possibly frighten or weaken us before they came out with it so that we would not have a robust response.
“Now that the chickens have come to roost, we were right in our suspicions. However, we want to let Nigerians know that the clandestine/surreptitious increase in the pump price of PMS is the first among the equally sinister policies the government has up its sleeve.
“On our part, we stand resolute with the people and will neither be distracted nor intimidated by the government or its security agencies. We insist that the government cannot criminalise protests or basic rights in the domain of the citizenry.
Accordingly, we demand the immediate:
1). Reversal of the latest increase in the pump of PMS across the country.
2). Release of all those incarcerated or being prosecuted on the assumption of having participated in the recent protests.
3). Halt the indiscriminate arrest and detention of citizens on trumped-up charges;
4). Reversal of the 250% tariff hike in electricity.
5). Stop the hijack of the duties of the Ministry of Labour and Employment.
6). End to policies that engender hunger and insecurity.
7). Halt to the government’s culture of terror, fear and lying.
We are guided by our belief in our country and the need to secure and sustain its sovereignty, integrity and welfare of the people. In the coming days, the appropriate organs of the Congress will be meeting to make appropriate decisions which will be made public.
Comrade Joe Ajaero
President
