It is said that he who is standing in the middle of the river should not have soap in his eyes or die of thirst. That means if you’re given everything or endowed to succeed, there should be no reason to die of poverty and hunger. The foregoing explains the Nigerian paradox.
Let me begin from a historical context because I’m not a happy man. On the minimum, there are issues that should not be heard of a blessed nation like Nigeria. There was a 1962 international studies, which predicted that in 15 years, about a decade and half, Nigeria, India and Brazil were going to join the developed nations. The outcome of that study was predicated on nature’s generousity to these countries.
On the continent of Africa and globally, Nigeria was given her due place among the comity of nations. As the late anti-apartheid icon, Nelson Mandela, famously asserted, Nigeria was positioned by God to serve as a source of pride to the black race anywhere in the world, as one out of every five black person you see is a Nigerian.
Almost 62 years after the famous prediction, concatenation has brought the acclaimed ‘Giant of Africa’ to a clay feet giant. While our counterparts, India and Brazil, have made serious in-roads into the world of development, the recalcitrant fuel controversy in Nigeria is a sign that governments since independence in 1960 till date has eaten Nigeria’s destiny with 10 fingers and 10 toes.
In fact, Nigeria’s case has become an emergency. A nation that established four refineries at various times, only to run it aground and turn to importation and subsequently subsidy, is in a terrible dilemma. Unfortunately, President Bola Ahmed Tinubu, who found the courage to reset the system and pattern for sanity in the oil and gas sector, is being sabotaged and discouraged.
However, the decision to remove fuel subsidy was long overdue. It was simply the question of who will bell the cat until Tinubu took office. Simply put, subsidy regime was a necessary bitter pill that Nigeria could no longer accommodate any further.
When Nigerian business mogul, Aliko Dangote, announced his company’s intention to build the largest refinery on the continent of Africa, it was a joy overdose for Nigerians, hoping that by the time it’s finally completed, the shame and disdain long queues at filling station had brought on Nigeria and Nigerians would have been wiped out. Alas, the Dangote Refinery inaugurated on May 22, 2023, with a capacity to refine 650,000 barrels of crude oil per day, has become the dashed hope of the common Nigerians.
If Dangote’s intention to build a refinery has anything to do with revolutionizing Nigeria’s oil industry through his massive refinery project, his approach would have been different. One, Dangote’s desperation to chase out every other player in the sector, so as to enjoy monopoly conveys intention that is not pure. As we speak, Dangote Refinery is in court seeking to force every other stakeholder to bow to his whims.
Additionally, President Tinubu demonstrated an unprecedented support for Dangote Refinery by ordering the NNPCL to sell crude to Dangote in our local currency – the naira. At a recent press briefing, Dangote himself admitted to having more than 500 million litres of refined petrol in his tank.
The issue is that Dangote’s price is unbearable as indicated by Oil Marketers who told bewildered Nigerians that imported fuel is cheaper than Dangote’s despite the fact that Tinubu’s government granted him crude to buy crude in Naira. All these appears to make the largest single-train refinery in the world to be a burden to Nigeria and its people. For God’s sake, how rational can it be for a man standing in the middle of water to suffer taste or have soap in his eyes?
There have been some concerns raised about Dangote’s business practices. For instance, the company has accused an international trading firm of trying to undercut its refinery with substandard petrol. The ball is in Dangote’s court as it were. The sole of business is completion; however, Dangote abhors it. If he wants Major Marketers to patronise him, he should do away with surplus profit mentality. Granted that the essence of business is profit but there should be fair play so that unbearable burden is not heaped on Nigerians in the quest for super gain as it is happening in cement industry.
This situation has resulted in escalating food prices and untold hardship for Nigerians. Many are worried that this crisis could jeopardise President Tinubu’s 2027 re-election bid.
One of the many consequences for Nigerians is the scarcity which has led to skyrocketing food prices, as transportation costs have increased. Many Nigerians struggle to afford basic necessities, and the situation is worsening by the day.
Why should Dangote Refinery be selling petrol at international market price when cost of production is now N500 per liter? And when asked recently in an interview with Aso Rock journalists why the fuel crisis has continued to linger, with incessant hike in prices, the man said to be operating the largest refinery in West Africa shockingly said he wouldn’t know because he is not an expert in the field. This is ridiculous.
To resolve this crisis, President Tinubu must take proactive steps. One possible solution is to convene a roundtable discussion with major oil marketers, including Wale Tinubu, his cousin, the Managing Director of Oando, AA Rano, Nigerian National Petroleum Company (NNPC) Limited, Mobil Oil Nigeria Plc (now 11 Plc), Total Energies Marketing Nigeria Plc, Conoil Plc, Forte Oil Plc (now Adrova Plc), MRS Oil Nigeria Plc, and NIPCO Plc. This gathering could help identify underlying issues and facilitate collaborative solutions.
Additionally, Nigeria can draw lessons from countries like Brazil and Malaysia, which have successfully overcome fuel scarcity challenges. Brazil invested heavily in biofuels such as ethanol and biodiesel to reduce its reliance on imported oil. Malaysia promoted the development of its domestic oil and gas resources, diversified its energy sources, and implemented policies to promote energy efficiency and conservation.
I mean, it is unthinkable that Nigeria, Africa’s largest oil producer and a ranking member of OPEC is facing a paradoxical situation. Despite its significant oil reserves, the country struggles to meet its domestic fuel needs. This anomaly stems from various factors, and those factors must be identified at a roundtable, and lasting solutions found before astronomical fuel price sinks the entire country. Don’t blame me if I say that fuel affects all aspects of our lives. It is woven with all aspects of our economic life.
Also, one may be tempted to agree with those flying the kite of political sabotage, knowing full well that if this unacceptable fuel situation continues till 2027, it would have severely damaged Mr President’s reputation and his political party. As the next election approach, is Dangote supporting the president to prove his mettle? Any ploy to sabotage the president’s second term bid is destined to die on arrival because Nigerians have, for the umpteenth time, verified the purity of President Tinubu’s intentions for Nigeria.
Nigerians know that all efforts by the president in the oil sector are targeted at eliminating the monumental corruption and ensure our refineries are revamped for the benefit of Nigerians. As a major stakeholder in upstream and down stream oil sector, I’m aware that President Tinubu is trying to fix the industry with the aim of alleviating the suffering of Nigerians, but some quacks in the oil sector are instigating people against the Renewed Hope administration just to score cheap political gains.
But let those behind these political gimmicks be reminded that even before becoming president, Tinubu had made over 2,000 billionaires; he has also made so many governors – both serving and former – including Senators, House of Representatives members; members of state houses of assembly, both serving and former.
So, no matter how much they try to sabotage his economic policies, they will fail woefully. However, they have a second option – to support the president’s efforts in the oil sector to move the nation forward. I think it is high time the president went through the blueprint of Dangote Refinery, because even some of his analysts are yet to study and understand the blueprint of the refinery. More refineries should be given licence to operate, with a view to creating a competitive oil market and end any form of monopoly within.
God bless Nigeria!
