The Arewa Think Tank (ATT) has said the approved crude oil supply to Dangote Refinery shows that President Bola Tinubu is a listening leader. This follows accusations and counter-accusations between Nigeria National Petroleum Company Limited (NNPCL) and the refinery’s owner, Aliko Dangote, over the quality of products.
ATT said that barely 24 hours after it ran an advertorial in a national daily about its position and the stand of other Civil Society Organisations (CSO) condemning NNPCL’s alleged sabotage of Dangote Refinery, the Federal Executive Council (FEC) approved crude oil supply to the refinery.
In a statement, the Convener of Arewa Think Tank, Muhammad Alhaji Yakubu, and the Co-Convener of the CSOs, Rev. Nicholas Daniel Jatau, said the FEC approval of the crude oil supply to Dangote Refinery confirmed that the Refinery’s products are of high quality, as opposed to NNPCL’s earlier allegation that they were substandard.
“We are happy that in a significant policy shift, President Bola Tinubu has instructed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery and other emerging refineries in Naira. This directive aims to stabilise the pump price of refined fuel and manage the dollar-Naira exchange rate”.
The convener said the decision was reportedly adopted during the Federal Executive Council meeting on Monday, July 29. This shows Mr. President has listened to various complaints regarding the Dangote refinery.
This development follows recent statements by Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), on July 18, alleging that local refineries, including the Dangote refinery, produce inferior products compared to imports. In response, he disclosed, Dangote refuted these claims by demonstrating the quality of his refinery’s diesel on July 20 during a visit by federal lawmakers.
“We know that Aliko Dangote also highlighted issues with international oil companies (IOCs) not supplying crude oil to his refinery, calling for an investigation into these allegations. Subsequently, on July 22, lawmakers initiated probes into Ahmed’s claims and the alleged obstructions by IOCs.
“We understand that the key points of President Tinubu’s directive are to ensure the stability of the pump price of refined fuel and the dollar-Naira exchange rate, so the Federal Executive Council adopted a proposal by President Tinubu to sell crude to Dangote Refinery and other upcoming refineries in Naira”.
Yakubu said it is a stepping stone that NNPC has committed to supply four cargoes of crude out of the Dangote Refinery at the moment, which requires 15 cargoes of crude at a cost of $13.5 billion yearly.
“But the FEC has approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as a pilot.
“We also understand that Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. The game-changing intervention will eliminate the need for international letters of credit and save the country billions of dollars used in importing refined fuel.”
“We want to use this opportunity to thank the President for establishing the North-West Development Commission. It is indeed a good initiative for the sector’s development and progress.
ATT equally commended the President for establishing a similar system in the Southeast region, which shows that he is bringing every part of the country along irrespective of political differences.
“Kudos to Mr. President for immediately signing the minimum wage of N70,000.00 into law. This is one sign of many good things coming the way of the people of our great country, Nigeria. All we need to do is give the President enough time and space to achieve this.
“We want to use this opportunity to caution the United States, United Kingdom, and Canada for issuing security alerts to their citizens in Nigeria, warning them of potential violence during the planned nationwide protests.
“We consider this as putting mere fears on travellers when there is calm and security for every citizen in Nigeria despite the looming threats of nationwide protest”. The statement said.
