"Dangote Tells Nigerian Government to Ban Fuel Imports, But Marketers Raise Concerns About Monopoly"

" \r\n\r\n Dangote Tells Nigerian Government to Ban Fuel Imports, But Marketers Raise Concerns About Monopoly \r\n\r\nAfrica\u2019s richest man, Aliko Dangote, has called on the Nigerian government to stop the importation of petrol, diesel, and other refined fuel products. He believes the country should prioritise local production under the \u201cNigeria First\u201d policy introduced by President Bola Tinubu.\r\n\r\nBut\u00a0 oil marketers and industry groups are pushing back , warning that such a move could lead to monopoly and affect fuel supply and pricing.\r\n \r\n\r\nSpeaking at the Global Commodity Insights Conference in Abuja, hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in partnership with S&P Global Insights, Dangote made it clear that petroleum products should be included in the list of banned imports.\r\n\r\n \r\n \r\n\r\nHe said, \u201cThe Nigeria First policy announced by His Excellency, President Bola Tinubu, should apply to the petroleum product sector and all other sectors.\u201d\r\n\r\n \r\n \r\n\r\nAccording to him, local refineries are struggling because of what he called dumping of fuel by importers; bringing in products that are below acceptable standards and cheaper than what local producers can offer.\r\n \r\n\r\n\u201cAnd to make matters worse, we are now facing increased dumping of cheap, often toxic petroleum products, some of which are blended to substandard levels that would never be allowed in Europe or North America,\u201d he said.\r\n\r\n \r\n \r\n\r\nHe also pointed to the influence of Russian crude oil on African markets. \u201cDue to the price caps on the Russian petroleum products, discounted petroleum products produced in Russia or with discounted Russian crude find their way to Africa, severely undercutting our local production, which is based on full crude pricing. This has created an unlevel playing field in most African countries. Petrol and diesel are sold for about a dollar net of taxes. In Nigeria, due to this unfair competition, this price is just about 60 cents, even cheaper than Saudi Arabia, which produces and refines its own oil. This is due to the fact that we are having too much dumping,\u201d he said.\r\n\r\n \r\n \r\n\r\nHe also addressed the issue of monopoly: \u201cLet me take this opportunity to address concerns around monopoly and dominance. The reality is that too many people who have the means and the opportunity to contribute meaningfully to our nation\u2019s growth choose instead to criticise from the sidelines while investing their wealth abroad.\u201d\r\n\r\n \r\n \r\n\r\nTo show that his refinery is performing well, Dangote shared that\u00a0 Nigeria has already become a net exporter of refined fuel .\r\n\r\n \r\n \r\n\r\n\u201cToday, Nigeria has actually become a net exporter of refined products. Before I came on the podium, I asked my people how many tonnes of PMS we have actually exported. From June beginning to date, we have exported about 1 million tonnes of PMS, within the last 50 days,\u201d he said.\r\n\r\n \r\n \r\n Marketers push back \r\n \r\n \r\n\r\nBut oil marketers are not in support of the idea. The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) said banning imports would hurt the industry.\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\nChinedu Ukadike, National Publicity Secretary of IPMAN, said, \u201cWe independent marketers will depart from that request. If the government does that, that means we will not be able to check inflation and monopoly, since it is the only refinery operating in the country now. We should continue to import even as we buy locally.\u201d\r\n\r\n \r\n \r\n\r\nHe disagreed with Dangote\u2019s claim that importation hurts local refining. \u201cImportation won\u2019t kill local businesses or refineries; it will strengthen them. It will ensure local refineries step up their game. I don\u2019t agree with Dangote on this,\u201d he said.\r\n\r\n \r\n \r\n\r\nBilly Gillis-Harry, National President of PETROAN, also pushed back on the suggestion. \u201cI don\u2019t agree with Dangote. We are running a free economy. There\u2019s no reason why any one company should have an overarching value on the entire industry.\u201d\r\n\r\n \r\n \r\n\r\nHe added, \u201cImportation is not killing the economy. Importation is stabilising the sources of petroleum products. Importation of all products is useful. However, those that can be produced in Nigeria, like toothpicks, garri, egusi soup, cassava, and others like that, should be banned. But importation of refined petroleum products should not be banned because it helps to ensure that there are multiple sources of energy and replenishment.\u201d\r\n\r\n \r\n \r\n What\u2019s next for Dangote \r\n\r\n \r\n \r\n\r\nLast Friday,\u00a0 Dangote stepped down as Chairman of Dangote Cement \u00a0to focus more on his refinery, petrochemicals, fertiliser business, and government engagement.\r\n\r\n \r\n \r\n\r\nThe billionaire businessman has insisted that his refinery can meet Nigeria\u2019s fuel needs. He recently shared that production would rise from 650,000 barrels per day to 700,000 by December.\r\n\r\n \r\n \r\n\r\nThe refinery is also preparing to launch a fuel delivery scheme starting August 1. It is currently\u00a0 receiving 4,000 CNG-powered trucks \u00a0that will deliver petrol, diesel, and aviation fuel directly to filling stations and bulk buyers like telecom companies.\r\n\r\n \r\n \r\n "

"Dangote Tells Nigerian Government to Ban Fuel Imports, But Marketers Raise Concerns About Monopoly"

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