By Straightnews
Nigerians are apprehensive about Aliko Dangote, the founder and president/chief executive of the Dangote Group, crashing the cost of Premium Motor Spirit (PMS) based on his pedigree in business, Straightnews has filtered the pulse.
The concerns arise from Dangote Group monopoly of cement, sugar, flour, salt, seasoning, pasta, and beverages coupled with high costs of the products in Nigerian market, causing soaring prices of the products.
Of recent, Dangote, the wealthiest individual in Africa, has been attacking International Oil Companies (IOCs) operating in Nigeria of planning to ensure the failure of the refining facility.
Also read: Nigerians in muted voice as Dangote plans sale of fuel cargoes for export
The founder of the $20 billion refinery, located in the Lekki Free Trade Zone, said the multinationals were deliberately frustrating the refinery’s efforts to buy local crude by jerking up premium price above the market price, thus hindering his effort to meet the 650,000 barrels per day (bpd) Dangote Refinery.
Speaking to a group of energy editors at a one-day training programme, organised by Dangote Group, Vice President, Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, said the situation was forcing the refinery to import crude from countries as far as the US, with the attendant high costs.
Edwin also lamented that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was still granting import licences, indiscriminately, to marketers to import dirty refined products into the country.
Also read: As President Buhari Inaugurates Dangote Refinery, Nigerians react
“The IOCs are deliberately and wilfully frustrating our efforts to buy the local crude. The NUPRC recently met with crude oil producers as well as refineries owners in Nigeria in a bid to ensure full adherence to DCSO, as enunciated under Section 109(2) of the Petroleum Industry Act (PIA).
“It seems that the IOCs’ objective is to ensure that our petroleum refinery fails. It is either they are deliberately asking for ridiculous and humongous premium or they simply state that crude is not available.
“At some point, we paid $6 over and above the market price. This has forced us to reduce our output as well as import crude from countries as far as the US, increasing our cost of production.
“It appears that the objective of the IOCs is to ensure that Nigeria remains a country, which exports crude oil and imports refined petroleum products. They are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their Gross Domestic Product (GDP), and dumping the expensive refined products into Nigeria, thus making us to be dependent on imported products.”
Moreover, Aliko Dangote, Chairman of the Dangote Group, has criticized the Central Bank of Nigeria (CBN) of raising the interest rate to nearly 30 percent.
Speaking at the Banquet Hall of the State House in Abuja during the opening session of a three-day summit organized by the Manufacturers Association of Nigeria (MAN) on Tuesday, July 2, Dangote expressed concerns over the impact of the current interest rate regime on job creation and the growth of the manufacturing sector.
“Nobody can create jobs with an interest rate of 30%. No growth will happen,” Dangote stated, highlighting the challenges faced by manufacturers in competing and expanding under such conditions. He also called for new policies to protect domestic industries and urged the government to provide an enabling environment for existing businesses, particularly manufacturers, to thrive.
“We must look to leading countries in the West and the East who are actively protecting their domestic industries. Import dependence is equivalent to importing poverty and exporting jobs. No power, no growth, no prosperity. Similarly, no affordable financing, no growth, no prosperity. There is no industrialization without protection Ignoring these facts, is what gives rise to insecurity, banditry, kidnapping and abject poverty,” he added.
Dangote’s flip flops
Dangote was caught in the web of flip flops on the resumption dates of production.
In January 2024, Nigeria’s Dangote oil refinery began producing diesel and aviation fuel, after years of construction delays at the 650,000 barrel per day (bpd) plant.
But, in June 2024, Nigeria’s Dangote refinery began by exporting its first jet fuel cargo to Europe contrary to expectations to sell in Nigeria to force down imported fuel and the high cost of Premium Motor Spirit (PMS).
This signalled a significant milestone in the global energy market and showcasing the rapid operational expansion of the massive facility.
According to a Friday report from S&P Global Commodity Insights, BP is currently transporting 45,000 metric tons of jet fuel from Dangote refinery to Rotterdam aboard the Doric Breeze.
This is export marks the refinery’s debut in the European market following a substantial 120,000 mt tender.
Dangote has been seen pushing around four cargoes of naphtha each month to Europe since April, even though volumes could soon be curbed to boost domestic supplies for gasoline blending, once the plant’s fluid catalytic cracker is operational.
“Dangote is now projecting its first gasoline supplies to begin in June, a spokesperson said May 20, revised from a previous May deadline. Meanwhile, the refiner has aimed to produce ultra low sulfur diesel eligible for export to Europe by the third quarter,” a representative for Dangote said in April.
Netizens troll over Dangote’s monopoly
Some Nigerians using their X handles (formerly Twitter) mocked Aliko Dangote of criticizing IOCs for frustrating his refinery in crude oil supply despite the fact that he has used monopoly to whip out other competitors in the country.
@chiditweets042 wrote ‘‘When Dangote did oversabi, took FG responsibility and filed a suit against Ibeto Cement. Whatever happens between Tinubu and Dangote is none of my business. You were once an oppressor when it favored you, enjoy your mandate my gee.’’
@ebelee_ I’m just wondering what Dangote wants us do for him. We’ve bought your sugar, we’ve bought your spaghetti, we’ve bought your cement, do you want our blood ?
@Isikotebuogbaya Because of Dangote Cement, Nigerian govt killed Ibeto Cement. The same Nigerian govt that killed Ibeto Cement, to pave way for Dangote’s monopoly, is now choking Dangote, and he’s crying “mgbee mgbee!” on TV.. Even Otedola is helping him to cry. What goes around comes around.
Beta Cuntri penned ‘‘Dangote planned to monopolize all the industries from FMCG to Cement and even oil refining. It was all planned out with the help of his cronies in power. Then, everything was uhuru for him. Dangote took a company to court for producing sugar. It was that bad. He wanted to do same when he ventured into the tomato paste production. We don’t need people with Dangote’s business mindset. We want a free market where every player is allowed equal opportunity.
@betacuntri If his plans worked for the refinery, Nigerians will be paying through their nose eventually. He would also have continued with his plan of venturing into the Steel business. He backed down, not because he truly wanted to, he did because his men are no longer in power. In summary, Dangote and Tinubu are the same, the only difference is that Tinubu is adding no single value.
@TosanHarrimanDr Did you ever see Dangote come to press over cement, never? Why? He was in charge of that market. Even the words of BUA to reduce cement price could not stand because of Dangote. The new players are saying no you can’t have all of the markets. We too are in the refinery business.
@0xvulkan_ The fact that the raw materials for cement are in Nigeria and the cement is produced here and yet it’s so costly and then there’s this crazy housing deficit does my head in. Then we have 2 of the top 5 richest people making cement makes me laugh. What’s the point??’’
