By Vincent Kayode
For two entities that are supposed to work together to provide energy security for Nigerians, you may wonder why Dangote has been using every means available to paint NNPC as the bad guy, while projecting himself and his company as the savior Nigerians have all been waiting for. After some digging, I found out that Dangote is not telling the whole truth. In fact, he is manipulating the media and using paid influencers to tarnish NNPC’s image. The truth will shock you.
Now follow me, let us get into the facts.
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- The first question is why is DR not releasing its product prices, even after accusing NNPC of being “mischievous “. I was shocked that NNPC was so transparent in its dealings, which you would expect of any company operating in the public domain. But Dangote, even with his blatant accusations against NNPC, is not happy.
- While subsidy is gone, most marketers have refused to import PMS because the margins are too low for their profitability calculations. NNPC on the other hand, is interested in the lowest prices for Nigerians, as it was not set up solely for profit. Dangote is not happy.
- If left unchecked, DR would sell the product to Nigerians at 1300 Naira per litre. What NNPC did was to negotiate with Dangote, and drive down the prices to a range that will be cheaper for Nigerians to afford. Dangote is not happy.
- By selling crude to DR in Naira, the FG and NNPC have shown not only good faith, but accountability. Reciprocity is the norm in business. This is why NNPC must have an office inside DR complex, to avoid “stories that touch the heart”. I guess DR is not happy that another entity (NMDPRA, NNPC, MoF) is checking his production and supply claims. Trust me, but verify.
- The much-touted business model of Mr Dangote is being tested here. His business successes have usually been around being a monopoly player, stifling competitors through unfair practices, and arm-twisting government to get special favors and waivers. If in doubt, Ask Mr Abdussamad Rabiu of BUA. Go and inquire about Ibeto Cement. The current administration believes in fairness to all players. Dangote is not the only businessman in Nigeria. Do your business, but don’t play blackmail card because you can’t have your way all the time. But Dangote is still not happy.
- The crude oil being produced by NNPC and its JV partners are for the benefit of all Nigerians. NNPC is not in business to increase Dangote’s profit margin, but to ensure energy security for all Nigerians. This is a key provision of the Petroleum Industry Act (PIA) 2021. Still Dangote is not happy.
- I think Mr Dangote is creating smokescreens to divert attention away from his refining issues. He should focus on producing the products he has promised, and in the quantity that he has promised. He should stop seeing NNPC as a threat.
- The sky is big enough for all birds to fly. You cannot monopolize the Nigerian oil sector please. PMS is not cement, it is not sugar, and it is not flour. It is basically an essential commodity that can’t be allowed to be manipulated by just single individual, to the detriment of poor, unsuspecting Nigerians.
Vincent Kayode, wrote in from Lagos.
