On July 15, 2024, the President of Dangote Industries Limited, Alhaji Aliko Dangote, announced that the $20bn refinery was set to roll out its petrol in August 2024, having resolved its crude oil supply issues through the help of NNPC and the Federal Government.

“Gasoline (petrol) production is to commence in July with sales from August. Annual revenue is projected to exceed $26bn,” Dangote had stated while delivering a presentation at the plant last month.

But oil marketers on Sunday said that no dealer in Nigeria would be able to buy the petrol from the Dangote refinery, because the product would be priced at the international market rate, far higher than the domestic cost at the pumps.

When contacted and asked whether oil marketers had been briefed about the price of petrol from the Dangote refinery, the Deputy National President of the Independent Petroleum Marketers Association of Nigeria, Zarma Mustapha, gave a negative reply.

He, however, stressed that PMS from the plant would be sold at the international market rate, adding that no marketer would want to pay such price currently.

“There has been no official communication from them yet on pricing for petrol. However, one thing I want you to understand is that even if the Dangote refinery starts to release products, particularly PMS, no marketer can be able to buy the product from him.

This is because the refinery is an independent commercial entity and they must recoup their cost of refining and add some margin before they sell out the product. The current price of the product within the country is below the international price of a litre of PMS.

“So you cannot buy the product from the refinery at the international price and then sell it at the prevailing price at the retail outlets. If you do, you are going to lose a huge amount of money, which is a difference of between N400 and N500/litre,” Mustapha stated.

The IPMAN official, however, noted that for Nigeria to have Dangote petrol across its filling stations, the NNPC would have to intervene by purchasing the product and reselling it to dealers at discounted rates.

“NNPC may have to offtake the product, just like they are importing from other countries for upward supply to Nigerian marketers, I think only the national oil company can offtake PMS from them and know how best they can continue to supply it to marketers to sell at the approved current price.

“If it is not done this way, no marketer will be able to buy the product and sell it at a loss of over N400 to N500/litre. It is not possible” Mustapha stated.

the landing cost of petrol was N1,117/litre as of July 16, 2024, according to data released by the Major Energies Marketers Association of Nigeria. MEMAN disclosed this during a webinar with journalists.

The association had also revealed that the landing cost of diesel was N1,157/litre, while that of aviation fuel was N1,127/litre, at the time.

The N1,117 landing cost of petrol is far above the pump price of the product in Nigeria. Currently, the pump price of petrol is between N660/litre and N800/litre, depending on the area of purchase.

When contacted and asked whether major marketers would be able to buy petrol from the Dangote refinery, the Executive Secretary, MEMAN, Clement Isong, said his group had earlier published the landing cost of PMS, adding that this was the realistic cost of the product.

“You have seen the price we published which is the realistic cost, and you know the cost at the pumps today, and Dangote refinery is a business entity that will not want to make losses. So that is all I will say,” he stated.

NNPC is currently the sole importer of petrol into Nigeria. Other marketers stopped importing the product due to their inability to access the United States dollar required for PMS imports.

Black marketers have taken advantage of the situation, selling as high as N1,300 per litre and N1,500 per litre in parts of Lagos and Ogun states.

Long queues started building up at fuel stations in Abuja and Lagos on Friday and have persisted.

On Saturday, while reacting to the long queues and scarcity in some parts of the country, the Nigerian National Petroleum Company Limited said the tightness in fuel supply and distribution was caused by a hitch in the discharge operations of a couple of vessels.

“The NNPC Ltd wishes to state that the tightness in fuel supply and distribution witnessed in some parts of Lagos and the FCT is as a result of a hitch in the discharge operations of a couple of vessels,”  the NNPC Chief Corporate Communications Officer, Olufemi Soneye, said.

The company added that it was “working round the clock with all stakeholders to resolve the situation and restore normalcy in the operations.”

However, despite the assurance by the NNPC, the situation worsened as checks by our correspondents nationwide on Sunday showed that there were long queues at several filling stations across major cities.

It was observed on Sunday in Abuja, the capital city that while the few filling stations that dispensed the product sold it at between N660/litre and N800/litre, black marketers took advantage of the scarcity to hike the price to about N1,200/litre, depending on the area of purchase.

This came as oil marketers revealed that they were also queuing up to load petrol, adding that most depots lacked stock to sell.

“We, marketers, too are surprised that we couldn’t get fuel as we used to get at depots. We were worried too; we didn’t know the cause until the NNPC came out with a release on Saturday. Let’s just believe what the NNPC said, that they would arrest the situation,” the National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, told one of our correspondents.

“I believe that within this week, everything will be normalised by the time they push products to the depots for marketers to pick from. Ours is to pick from the depots, take it into our stations, and dispense to the public. But for now, most of the depots are dry. The implication of that is that the stations will be dry too. Most of our members have run out of stock. That is the cause of the queues we are experiencing now,” Fashola added.

He noted that marketers were still buying PMS “at a price that is above N700/litre from the private depots.”

“We are not yet getting direct supply from the NNPC as we are supposed to. What we are getting is so small compared to our population. That is why we are forced to go to the third parties, the private depot owners, and they are not helping matters with the kind of price they are putting out there.

“That is why independent marketers sell around N800 or so. Until we address this issue of direct supply, there will be issues. We keep shouting to the NNPC to look at that area properly because something is fundamentally wrong with our distribution channel and until they correct that, we will continue to have this issue of fuel scarcity.”

On his part, the Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, also confirmed that there had been low stock but could not tell when the situation would improve.

“The problem is that the stock is low because there have been some challenges in bringing the product into the country from the vessels. We are all queuing up for products, everybody is looking for the product from the NNPC. Only the NNPC knows when normalcy will be restored. It is the sole supplier,” he stated.

The spokesperson for the NNPC, Olufemi Soneye, did not respond to inquiries on Sunday on when the fuel supply situation would improve up till when this report was filed.

He made this projection while addressing the PENGASSAN Energy and Labour Summit 2023 in Abuja.

Kyari emphasized that, as a resource-dependent nation, Nigeria should not continue exporting 100 percent of its crude oil production, as it currently does.

He stated, “Today, we export 100 per cent of our productions, no resource-dependent country does this and that is why we must deliver on our mandate. I don’t want to speak about it; when it is done, you will see it.”

The NNPC boss refrained from providing specific details but noted, “I strongly believe now, without giving you a date so that people don’t get angry again, but in 2024, this country will become a net exporter of petroleum products.”

He explained that this transformation would mean Nigeria having sufficient volumes of petroleum products domestically, with the ability to export surplus.

However, Kyari clarified that refining crude oil within the country would not necessarily reduce the local price of petrol, as it is influenced by international prices.

He also highlighted ongoing efforts to revive government-owned refineries and the expected contributions of projects like the Dangote Refinery, which will contribute significantly to increasing domestic refining capacity.

Kyari further elaborated on the growing adoption of Compressed Natural Gas (CNG) as an alternative fuel source, which is already happening in the country.

He mentioned that buses and state governments are transitioning to CNG, and significant projects are underway to introduce CNG into the market, with the goal of providing Nigerians with cleaner and more affordable fuel options.

The NNPCL emphasized that it is not currently conducting any recruitment activities.

This statement was shared on the company’s official social media handle.

The NNPCL has previously issued similar warnings regarding fraudulent recruitment claims in August 2017, October 2021, and December 2021.

The NNPC reiterated its commitment to transparency in its recruitment processes, stating that any future recruitment exercises would be officially announced on its website and official social media platforms.

The clarification came directly from Mr. Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPC, during an investigative hearing by the ad hoc committee on the acquisition of OVH Energy by NNPCL.

Kyari refuted the speculations raised in a petition, emphasizing that despite the company’s transition to a private entity registered with the Corporate Affairs Commission, there were no imminent plans to change its headquarters’ location.

He attributed the misconception to the fact that a significant portion (70 percent) of NNPC’s operations currently operate from Lagos, but he stressed that shifting the headquarters would only result in unnecessary additional costs.

Kyari pointed out that NNPC Ltd. had streamlined its operations, ensuring that the right personnel were strategically placed where they were most needed.

He clarified that the registered headquarters remained in Abuja and that his physical presence with the operations staff in Lagos did not imply a permanent relocation.

Addressing those making the relocation allegations, Kyari noted that such resistance often accompanied merger and acquisition processes worldwide.

He stated, “The company cannot keep them where they are not needed; this is what the petitions are all about.”

Kyari emphasized the importance of maintaining the dominant culture in any merger and acquisition, particularly the commitment to service. He reassured that NNPC Ltd. was taking measures to minimize any negative impacts, with the ultimate goal of creating value.

Discussing the retention of expatriates, Kyari underscored their significance, stating that no national oil company of limited liability could do without them.

He revealed that it required extensive engagement efforts to persuade expatriates to stay, emphasizing the value they bring to the company.

Kyari concluded by expressing the need for NNPC Ltd. to be an oil company with which international partners could effectively engage.

He emphasized the importance of including expatriates in the company’s workforce.

In response to the GCEO’s statements, Rep. Hassan Na’laraba, Chairman of the committee, commended Kyari for providing clarity on the matter.

He emphasized that the committee’s focus was on addressing issues to combat corruption and suggested the possibility of inviting Kyari for further clarification as they prepared to submit their report.

An interface with the GCEO during the oversight process was also considered.

In his interview on Channels Television’s Politics Today, Kyari assured Nigerians that the situation will not last beyond a day or two, and he did not expect queues to persist beyond Saturday.

Kyari emphasized that the primary issue with the petroleum system is the supply of Premium Motor Spirit (PMS), commonly known as fuel.

He revealed that there are currently more than 810 million litres of petroleum available in depots, tanks, and fuel stations throughout the country.

This means that there is an abundant supply ready to be utilized.

Kyari explained that people panicked and rushed to fuel stations due to the uncertainty of pricing, but now that pricing is certain, they can return home knowing that the supply is sufficient.

He reassured Nigerians that competition among major players in the oil sector would lead to a reduction in petrol prices, countering the recent upward trends that have caused panic in the country.

Following the discontinuation of petroleum subsidy, fuel queues reappeared at stations across the nation due to the recent hike in petrol pump prices.

The NNPC had adjusted the pump price of petrol to reflect market realities but did not disclose the new prices. Nevertheless, retail outlets in Lagos, Abuja, Ogun, and other states sold petrol at prices ranging from 600 to N800 per litre.

Talks between the Federal Government and organized labor regarding the removal of fuel subsidy ended in a deadlock. The parties failed to reach a consensus after oil marketers raised petrol pump prices to over N700 per litre from N195.

During an interview on Arise TV’s Morning Show, Kyari explained that the removal of subsidy would encourage new players to enter the market, promoting competition and phasing out monopoly. He emphasized that this would foster healthy competition, leading to a downward revision of petrol prices nationwide.

Kyari stated, “The removal of subsidy will attract new entrants to the market because oil marketing companies have been hesitant to enter due to the existing subsidy regime. With the market being regulated, oil marketing companies can import or buy locally produced petrol and sell it at retail prices.

“This will introduce competition, even with NNPC. According to the law, NNPC cannot control more than 30 percent of the market going forward. Once the market stabilizes, oil marketing companies will be able to participate.”

He added, “Competition will naturally arise, and the market will regulate itself. In a week or two, you will witness different prices as major players adopt different approaches. Competition will drive these changes downward, and increased efficiency will play a significant role.”

Regarding the price hikes by fuel stations despite holding subsidized stock, Kyari explained, “This is a typical stock management issue that applies to all commodities, not just petroleum.

“It could have been the opposite, with prices collapsing and those holding old stock forced to sell at lower prices to match market conditions.

“It’s not something unusual or alarming; it’s simply how stock management works. The prices at our stations reflect the current market conditions, and prices can decrease at any time as the market adjusts itself.”

Yakubu, through his counsel, Ahmed Raji (SAN), filed the suit before Justice Inyang Ekwo of a Federal High Court, Abuja.

The originating summons was dated and filed on March 8, with EFCC, CBN and the bank listed as 1st to 3rd defendants, respectively.

Justice Ahmed Mohammed had, on March 31, 2022, discharged and acquitted ex-NNPC GMD of money laundering charge.

Justice Mohammed held that the EFCC failed to prove its case beyond reasonable doubt but the anti-corruption agency had appealed against the judgment.

Yakubu, in the suit, asked whether “the court did not become dominus litis of the respective sums of $9,773,200 and £74,000 belonging to” him when same was put in issue, and in evidence before the court between Federal Republic of Nigeria v. Engr Andrew Yakubu, and in respect of which judgment was delivered on the 31st of March, 2022.”

He said if the question was answered in the affirmative, he further asked whether the EFCC ought to still have in its custody his seized monies after a sister-court gave a judgment in his favour on March 31, 2022.

Yakubu, therefore, asked whether the monies ought not to be released to him forthwith, or paid into an account under the control of the registry of the court, pending the outcome of the appeal lodged by the EFCC against the said judgment.

He sought an order directing the defendants to immediately release the monies to him in view of the court judgment.

Alternatively, he sought an order directing them to immediately transfer the said monies into an account under the control of the FHC chief registrar or into an account to be operated by the chief registrar, the EFCC and him, pending the determination of the appeal.

Zainab Ahmed, the minister of finance, and Boss Mustapha, the secretary general of the federation, are among the representatives who were asked to participate in a Q&A session on Tuesday, Channels Television reports.

Sylva Okolieaboh, the acting Accountant General of the Federation, as well as the Nigerian National Petroleum Company Limited (NNPCL), among others, have also been summoned.

The committee is also concerned about the disparity in figures from crude oil sales from  2011 to 2014 and is accusing the minister of finance of approving payments to whistle-blowers at variance with the whistle-blower policy.

The ad hoc House committee is investigating a whistle-blower’s allegation of illegal sale of 48 million barrels of Nigeria’s bonny light crude in China in 2015, valued at $2.4 billion.

The committee, in February, had accused the Attorney General of the Federation (AGF), Abubakar Malami as well as Interpol, on what it described as interference in the committee’s investigation.

The committee questioned why a whistle-blower would be invited by Interpol on the request of the Ministry of Justice just after the commencement of the investigation of the House.

However, the Head of the National Central Bureau of Interpol Nigeria, Garba Umar, said the Bureau only acted on the request of the AGF.

The Chairman, House Ad hoc Committee on Oil Theft, Mark Gbillah said, “There is a group called Advocacy for Good Governance and Free Nigeria.

“That is the so-called Civil Society Organisation that wrote to the Attorney General claiming there was this international gang of blackmailers trying to blackmail senior officials of the government.

“How come the Attorney General responded to allegations by a faceless body? That means the Attorney General himself did not ascertain the veracity of any organisation.”

The Committee, dissatisfied with the submission of Interpol, accused the AGF of interfering with the investigation of the House.

The Committee feared the safety of the whistleblower and insisted that the Ministry of Justice should not be making direct requests to Interpol but should go through the police, as Interpol by law is only expected to respond to requests by local law enforcement agencies.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, said this on Monday.

Sylva’s remarks came as oil marketers stated that the supply hitches in the downstream oil sector that often leads to fuel scarcity, might persist till June, based on the government’s plan to end petrol subsidy in that month.

The petroleum minister spoke in Abuja at the resumption of the scorecard series (2015-2023) of President Muhammadu Buhari.

Last week, the Minister of Finance, Budget and National Planning, Zainab Ahmed, said the Federal Government had budgeted about N3.6tn for fuel subsidy till June 2023.

Sylva, while speaking in Abuja on Monday, insisted that subsidy had been a burden, but stressed that it was a mandate on NNPC which had made the oil firm to continue selling PMS at a loss.

He said, “The management of the supply situation under this subsidy regime is not easy. We must all agree that so much money is being burnt in our cars, but somehow we have to put funds to continue to keep the country wet.

“Sometimes if you really think deeply you begin to wonder what magic we are doing to be able to keep this country wet consistently. Considering that you buy something, let’s say for N10, and you are to sell it at a loss.

“And then you are expected to go back to buy the same thing, and come back again to sell it at a loss. So at every point in time, you are looking for more money to continue to buy it because you’re mandated to sell it at a loss.”

Sylva added, “So if you are a businessman, look at it from this perspective, that you are now in the business where you are mandated to sell at a loss to the public. That is not an easy job, I must tell you.”

Respond in to a question on how he would feel when buying petrol at N300/litre, Sylva said he would not feel bad about it.

“If you ask me how I will feel as a private citizen to buy petrol at N300/litre, sadly, I will say I won’t feel bad, knowing the actual situation. And if you compare Nigeria to other countries, you will understand,” he stated.

The minister added, “When you convert the N300/litre that you are talking about to other currencies, then you will understand. A lot of you travel to the United Kingdom or the United States, how much do you buy petroleum products there? Even in Arab communities that produce crude oil.”

He said the cost of the commodity in Nigeria was not as high as what was obtained in other countries, but stressed that the current national consensus was that subsidy on petrol was no longer sustainable.

“Unfortunately we are still in a subsidised regime, which all of us know. As a country, I think it is a national consensus now that subsidy is not sustainable, but together we will get there,” Sylva stated.

He said until the cost of petroleum products were market-driven, investors would continue to shy away from investing in the downstream oil sector.

“Under a subsidised regime, who is going to invest? If you build a refinery, how is your refinery going to make profit under a subsidised regime? But if you have a market-driven situation, you’ll see that a lot of investors will come.

“And the more refineries we have, this problem of access to petroleum products will be a thing of the past,” Sylva stated.