Business
Dangote Refinery imbroglio: Experts react as NASS mulls sanctions on economic saboteurs
![Dangote Refinery imbroglio: Experts react as NASS mulls sanctions on economic saboteurs 41 Dangote refinery 2](https://www.agendang.news/wp-content/uploads/2024/07/Dangote-refinery-2.jpg)
The Nigerian government authorities have offered the Chairman of Dangote Group, Aliko Dangote an olive branch amid the feud between Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority over substandard petroleum products.
This comes as Nigerian lawmakers, particularly, the Senate have vowed to come tough on economic saboteurs in the petroleum industry.
DAILY POST reports that on Monday night, the Minister of State Petroleum Resources (Oil), Heineken Lokpobiri, Dangote, NMDPRA CEO, Farouk Ahmed and others met over the quality of the refinery’s petroleum products and domestic crude oil supply challenges.
Others in the meeting were Gbenga Komolafe, Chief Executive Officer, of Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Mele Kyari, Group Chief Executive Officer of Nigerian National Petroleum Corporation Limited (NNPC).
In a statement by the Minister’s media aide, Nneamaka Okafor, he said the meeting “marks a significant step towards resolving the challenges and underscores the Minister’s dedication to fostering a conducive environment for Nigeria’s oil and gas sector.
“The meeting focused on finding a sustainable and lasting solution to the current impasse affecting the Dangote Refinery, with all parties demonstrating a commitment to collaborative and proactive problem-solving”.
Similarly, in what seems like a feel-good day for the Dangote brand, the Senate and the House of Representatives also waded into resolving the challenges facing the refinery.
On his part, the Senate President, Godswill Akpabio on Monday decried economic sabotage bedeviling the country’s oil and gas sector.
He set up an ad-hoc committee to address the challenges facing Dangote Refinery and the oil and gas sector.
“The shadows of economic sabotage looms large, threatening to destabilize this critical industry by extension our Nation’s financial stability”, he said.
He charged the committee “to identify the perpetrators, their modus operandi and networks, then report same to the Nigerian senate for further legislative action”.
Earlier, DAILY POST reported that the House Committee chairman of the joint Committee on Midstream and Downstream, Ikenga Imo Ugochinyere also asked Dangote Refinery and NMDPRA to halt allegations and counter allegations over the alleged substandard of products from the refinery.
According to him, the Committee has commenced an investigation into the issue of substandard petroleum products, non-availability of crude oil supply and other challenges Dangote Refinery was grappling with.
Though these moves might not have addressed entirely the petroleum industry crisis, they present a springboard for a more conversation towards ending the imbroglio facing Dangote Refinery and indeed Nigeria’s oil and gas sector.
Dangote Refinery, NMDPRA feud
The Dangote Refinery and NMDPRA dispute started in June 2024, when Devakumar Edwin, the Vice President of Dangote Industries Limited accused NMDPRA of granting indiscriminate licenses to oil marketers to import dirty fuel.
The feud heightened barely four days ago when the CEO of NMDPRA, Ahmed stated that the quality of the 650,000 barrel per day Lagos-based Dangote refinery’s diesel product is inferior compared to imported ones.
Ahmed said Dangote Refinery is “producing between 650 and 1,200 PPM. Therefore, in terms of quality, their products are inferior to imported ones”.
The statement sparked reactions among Nigerians and stakeholders in the country’s oil and gas sector.
Meanwhile, days after, Dangote dismissed Ahmed’s statement.
According to him, Dangote Refinery’s products are not substandard.
He called for an independent test of its products.
Reiterating Dangote’s stance, Rabiu Umar, the Group Chief Commercial Officer at Dangote Industries Limited in a Channels Television interview on Monday said it was untrue that Dangote Refinery had high sulfur content.
Dangote Refinery and domestic crude supply crisis
The Dangote refinery had continued to lament its inability to get crude oil from Nigeria.
The refinery had sought crude oil supply from the United States and Brazil.
A recent statement by the firm indicated that it was also approaching Libya and Angola for crude oil import.
This comes amid moves by NUPRC to extract a commitment from stakeholders over meeting the Petroleum Industry Act Domestic Crude Supply Obligation, DCSO.
Consequently, NUPRC ordered refiners to provide monthly price quotes on crude supply.
This comes after Edwin had said that International Oil Companies were frustrating the 100 percent commencement of Dangote Refinery by selling crude oil at higher prices to the refinery.
Expert reactions
Speaking to DAILY POST on Dangote Refinery and the challenges facing Nigeria’s energy sector, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf said government authorities in the industry should be more interested in scaling up domestic production rather than deepening the corruption-riddled importation of petroleum products.
He said that the government should provide support to all domestic refiners as a way of encouraging its own.
“What the economy needs at this time is production. This is true of all sectors of the Nigerian economy. But it is even more so for our energy sector.
“This is the pathway to energy independence, energy security, conservation of our foreign exchange, building our foreign reserves and deepening backward integration in the Nigerian economy.
“Domestic refining of petroleum products has incredible multiplier effects on the economy, in addition to promoting macroeconomic stability through reduction in import dependence.
“The government and its agencies therefore need to provide every support possible to support domestic refining of petroleum products.
“Importation of petroleum products currently accounts for about 30% of our import bill. Domestic refining of petroleum products would provide considerable relief to our forex market.
“The narrative about monopoly powers is better addressed by encouraging more domestic producers than perpetuating the culture of Importation.
“The economy had suffered enormous bleeding from the decades of Importation of petroleum products, the subsidy regime and the associated corruption in the entire supply chain. We cannot afford to continue on this path.
“Government agencies in the oil gas ecosystem should be more interested in scaling up domestic refining of petroleum products rather than deepening the corruption stricken Importation of petroleum products”, he told DAILY POST.
Similarly, an energy expert, Joseph Eleojo said the government should do everything to fight those sabotaging Dangote Refinery.
However, Managing Partner, BBH Consulting and Convener, Public Interest Advocacy Network (PIAN), Barr. Ameh Madaki believes that the government should uphold regulatory sanctions on Dangote Refinery to checkmate anti-competition tendencies in the oil industry.
He noted that if Dangote Refinery must succeed in the oil sector, it must wean itself off the ‘feeding bottle syndrome’.
“I think that the Regulators should clamp down firmly on Dangote’s allegations that the NMDPRA is authorizing the importation of substandard products into Nigeria.
“That is a direct affront to the regulator, to which Dangote Refinery is subject. Dangote’s utterances are totally anti-competition, and unless he weans himself off the feeding bottle syndrome, he will never be able to play on a level playing field”, he said.
CREDIT: DAILY POST
Business
NIN-SIM Linkage: NCC Sets September 14 As Final Compliance Deadline
![NIN-SIM Linkage: NCC Sets September 14 As Final Compliance Deadline 54 NCC and sim cards](https://www.agendang.news/wp-content/uploads/2024/08/NCC-and-sim-cards.jpg)
The Nigerian Communications Commission (NCC) on Wednesday, revealed that over 153 million Subscriber Identification Modules (SIMs) have been successfully linked to a National Identity Number (NIN), reflecting a compliance rate of 96 per cent, a substantial increase from 69.7 per cent in January 2024.
This is even as the NCC has directed all Mobile Network Operators (MNOs) to complete the mandatory verification and linkage of SIMs to NINs by September 14, 2024.
Effective September 15, 2024, the Commission expects that no SIM operating in Nigeria will be without a valid NIN.
The Commission’s director, public affairs, Reuben Muoka, in a statement, said NCC is approaching the final phase of the SIM-NIN linkage process, even as it seeks the continued cooperation of all Nigerians to achieve 100 per cent compliance.
“The complete linkage of all SIM cards to NINs is essential for enhancing the trust and security of our digital economy. By verifying all mobile users, this policy strengthens confidence in digital transactions, reduces the risk of fraud and cybercrime, and supports greater participation in e-commerce, digital banking, and mobile money services. This, in turn, promotes financial inclusion and drives economic growth,” it averred.
Through collaboration with the Office of the National Security Adviser (ONSA) and the National Identity Management Commission (NIMC), the NCC said it has uncovered alarming cases where individuals possessed an unusually high number of SIM cards—some exceeding 100,000.
The Commission reiterated its commitment to working with security agencies and other stakeholders to crack down on the sale of pre-registered SIMs, thereby safeguarding national security and ensuring the integrity of mobile numbers in Nigeria.
It therefore urged all Nigerians who have not yet completed their NIN-SIM linkage, or who have faced issues due to verification mismatches, to visit their service providers promptly to update their details before the deadline; alternatively, the approved self-service portals are available for this purpose.
The NCC also reminds the public that the sale and purchase of pre-registered SIMs are criminal offences punishable by imprisonment and fines. “We encourage citizens to report any such activities to the Commission via our toll-free line (622) or through our social media platforms,” it added.
CREDIT: LEADERSHIP
Business
NNPCL declares N3.3trn profit for 2023 financial year
![NNPCL declares N3.3trn profit for 2023 financial year 55 nnpc](https://www.agendang.news/wp-content/uploads/2024/08/nnpc.webp)
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has declared a N3.3 trillion profit for the 2023 financial year.
Chief Financial Officer of NNPC Ltd, Umar Ajiya who addressed newsmen on Monday on the development, said this was the highest profit declared by the company since inception.
Meanwhile, NNPC Ltd. has declared N2.101 trillion as a dividend for the 2023 financial year.
The News Agency of Nigeria (NAN) reports that the profit declared by the national oil company for 2023 is over N1 trillion higher than the N2.548 trillion profit it recorded in the 2022 financial year.
Details shortly……
CREDIT: DAILY POST
Business
Failed Refinery Devt Fund Threatens Modular Operations
![Failed Refinery Devt Fund Threatens Modular Operations 56 Dangote Refinery RFCC 1200x675 1 750x536 1](https://www.agendang.news/wp-content/uploads/2024/08/Dangote-Refinery-RFCC-1200x675-1-750x536-1.jpg)
A major intervention initiative which was initiated during the immediate past administration is now crippling investment entered into by a number of investors in the Modular refinery space.
The absence of the Investment Fund in addition to absence of crude supply arrangement has further frustrated the Modular refinery operators.
LEADERSHIP reports that a critical meeting is being proposed between the Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri, and the Modular Refinery operators with the aim of resolving crude supply to them in local currency.
The venue of the proposed meeting was not revealed by our source but the meeting will conclude discussion on naira sale of crude to operators.
But investigations by LEADERSHIP shows that the Central Bank of Nigeria (CBN) may have jettisoned a proposed establishment of Refinery Development Fund that was initiated to facilitate construction of such facilities across the country.
Our Correspondent reports that the Crude Oil Refinery-owners Association of Nigeria (CORAN), has 15 members whose refineries are in various states of development.
Our findings shows that of the 15 only 5 are close to peak production while the other 10 are still under construction and lacking capacity to access funding.
It is also understood that if the 15 refineries begin production total output would be close to 120,000 barrels a day generating over 2 million jobs.
It is not clear about the fate of the Fund which the government and operators agreed to be domiciled with the CBN.
The 10 refineries are not only looking to borrow funds after spending close to $20 million to reach their present development stage but are also struggling to negotiate crude supply agreement.
Three out of the 5 refineries, namely Waltersmith, OPAC and Edo refineries are the only facilities that have overcome major challenges while the remaining 2 are affected by non crude supply locally.
It would be recalled that the Federal Government and Crude Oil Producers in the country have committed to a sustainable supply of crude oil to Nigerian refineries under a market determined pricing system.
The producers under the aegis of the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce Industry (LCCI) at the instance of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) agreed to concede to a framework that would be mutually beneficial with a focus on ensuring that the local refineries are not strangulated with off-the-curve prices.
The parties made the commitment at a virtual meeting convened by the Commission Chief Executive, Engr. Gbenga Komolafe, with the OPTS on status review of the Framework for Seamless Operationalisation of Domestic Crude Oil Supply Obligation Template last month.
The meeting was part of efforts to effectively implement key sections of the Petroleum Industry Act, especially the aspect of pricing and crude supply to the domestic refineries.
Engr. Komolafe said President Bola Ahmed Tinubu, is fully committed to providing a level playing ground for producers and refiners to do business in the industry.
He said there is need to have a rule of engagement to ensure that the pricing model from the oil producers is not seen to be strangulating the domestic refineries. He directed producers and refiners to henceforth provide the regulator with cargo price quote on crude supply and delivery to effectively monitor and regulate transactions among parties. “We need to have the price quotes on a monthly basis” he directed.
The Domestic Crude Oil Supply Obligation (DCOSO) has a convergence with the nation’s energy security.
The NURPC boss said his administration is re-engineering its regulatory processes. “We allow all our processes to be transparent. While the Federal Government targets implementation of the regulation, all parties must concede to the rules of engagement as a guide for operation” he said
The regulator said it is committed to driving the issue of willing buyer/willing seller. “We need to discuss pricing especially as parties have committed to respecting their domestic crude oil obligation. For us as the regulator, we don’t want the upstream sector to be operated sub-optimally through cost under-recovery. So, the regulator is very alive to that. In crude pricing, we will never allow price strangulation to dis-incentivize our domestic refining capacity optimization.
The regulator does not support cost under-recovery in the upstream sector, and we will continue to work to ensure that crude supply profiteering as a negative factor that can strangulate our domestic refining capacity optimization is disallowed.”
The CCE further stated that “NUPRC is truly committed to attracting needed investments to boost upstream development and optimization of our hydrocarbon resources just as we want sustainability of domestic energy supply in the midstream and downstream sector.”
The spokesman of the CORAN, Eche Idoko, confirmed to our Correspondent that investors are at the moment struggling to get crude supply to sustain operations.
Idoko, said the proposed Refinery Development Fund has been a major set back to the sector and urged the present administration to revisit the initiative and called on the CBN to ensure its facilitation.
Meanwhile the CORAN is set to evaluate the investment landscape and operational viability of refinery businesses as Nigeria transitions towards a deregulated downstream oil market.
The Association is set to hold the inaugural edition of the Nigerian Crude Oil Refining Summit scheduled for October 7th and 8th, at the Eko Hotel & Suites, Lagos.
This critical event, themed “Making Nigeria a Net Exporter of Petroleum Products,” comes at a crucial time for the Nigerian oil industry as the nation navigates the opportunities and challenges presented by the downstream oil deregulation.
The summit aims to provide a comprehensive platform for discussing the significant transformations within Nigeria’s oil sector.
As the country transitions towards a deregulated downstream oil market, there is a pressing need to evaluate the investment landscape and operational viability of refinery businesses.
This deregulation is expected to cultivate a competitive market environment, attract foreign investments, and boost the operational efficiency of local refineries.
“This summit is a vital step in our journey to not only meet domestic demand but also position Nigeria as a leading exporter of petroleum products. We are excited to bring together industry experts, policymakers, and investors to collaboratively explore and address the challenges and opportunities that lie ahead,” said Mr. Momoh Jimah Oyarekhua, CORAN.
The summit will highlight the importance of creating a stable and transparent regulatory framework that encourages investment while protecting consumer interests and at the same time promoting collaboration between regulatory authorities, crude oil producers, and refinery operators to ensure a steady supply of feedstock at competitive prices, thereby supporting sustainable refining operations
According to CORAN, in light of the global shift towards cleaner energy and sustainable practices, the summit will also address the need for Nigeria to adopt advanced technologies, enhance local content, and align with global best practices. These strategies are essential for the country’s refineries to thrive in an evolving energy landscape and to achieve the goal of becoming a net exporter of petroleum products.
“Our mission at CORAN is to empower Nigeria’s refinery sector to reach its full potential. By fostering collaboration and innovation, we aim to transform challenges into opportunities, driving economic growth and energy independence for our nation,” Oyarekhua said.
The Nigerian Crude Oil Refining Summit 2024 will feature keynote speeches, panel discussions, and networking opportunities with key stakeholders, including government officials, industry leaders, and international investors. Attendees will have the chance to engage in in-depth discussions about the future of Nigeria’s refinery business and explore collaborative approaches to overcoming industry challenges.
The Crude Oil Refinery-owners Association of Nigeria (CORAN) is dedicated to advancing the interests of Nigeria’s refinery owners and operators. CORAN advocates for policies that promote investment and growth in the oil refining sector, ensuring the industry’s sustainability and its contribution to Nigeria’s economic development.
CREDIT: DAILY POST
-
Sports6 months ago
Anthony Joshua to face winner of Tyson Fury vs Oleksandr Usyk
-
News3 years ago
Avram Grant: Former Chelsea Coach Accused Of Sexual Harassment
-
News5 months ago
Naira appreciates to N1,000 per dollar at FX black market
-
News4 months ago
King Charles III returns to public duties after cancer treatment
-
News1 year ago
Tinubu Appoints Akume SGF, Confirms Gbajabiamila CoS
-
News1 year ago
Senate Presidency: North-Central Lawmakers Reject APC Consensus List
-
Politics2 years ago
Tinubu Campaign Group DG, Abdulmumin Jibrin, Dumps APC
-
News1 year ago
NBC Has No Powers to Fine Broadcast Stations, Court Rules