Dangote Refinery: Approved crude oil supply shows Tinubu is a listening leader – Arewa Think Tank, CSOs

 

The Arewa Think Tank (ATT) has said the approved crude oil supply to Dangote Refinery showed that President Bola Tinubu is a listening leader, following accusations and counter accusations between Nigeria National Petroleum Company Limited (NNPCL) and the owner of the Refinery, Aliko Dangote over quality of products.

Arewa Think Tank said  barely 24 hours after it ran an advertorial in a national daily about its position and the stand of other Civil Society Organisations (CSO) condemning alleged sabotage of  Dangote Refinery  by NNPCL, Federal Executive Council (FEC) approved crude oil supply to the refinery.

In a statement by the Convener of Arewa Think Tank, Muhammad Alhaji Yakubu and the Co-Convener of the CSOs, Rev. Nicholas Daniel Jatau said the FEC approval of the crude oil supply to Dangote Refinery was a confirmation that products of the Refinery are of high quality as against earlier allegation by NNPCL that they were substandard

“We are happy that in a significant policy shift, President Bola Tinubu has instructed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery and other emerging refineries in Naira. This directive aims to stabilize the pump price of refined fuel and manage the dollar-Naira exchange rate.

“This decision was reportedly adopted during the Federal Executive Council meeting on Monday, July 29. This shows that Mr. President has a listening ears to various complaints regarding the Dangote refinery.

“This development follows recent statements by Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), on July 18, alleging that local refineries, including the Dangote refinery, produce inferior products compared to imports. In response, Dangote refuted these claims by demonstrating the quality of his refinery’s diesel on July 20 during a visit by federal lawmakers.

“We know that Aliko Dangote also highlighted issues with international oil companies (IOCs) not supplying crude oil to his refinery, calling for an investigation into these allegations. Subsequently, on July 22, lawmakers initiated probes into Ahmed’s claims and the alleged obstructions by IOCs.

“We understand that  the key points of President Tinubu’s directive is to ensure the stability of the pump price of refined fuel and the dollar-Naira exchange rate, so the Federal Executive Council  adopted a proposal by President Tinubu to sell crude to Dangote Refinery and other upcoming refineries in Naira.

“It is a stepping stone that NNPC has committed to supply four cargoes of crude out of the Dangote Refinery at the moment which requires 15 cargoes of crude, at a cost of $13.5 billion yearly. 

“But the FEC has approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as a pilot. 

“We also understand that Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. The game-changing intervention will eliminate the need for international letters of credit. It will also save the country billions of dollars used in importing refined fuel.” 

“We want to use this opportunity to appreciate Mr. President for the establishment of North-West Development Commission. It is indeed a good initiative for the development and progress of the region.

“We equally want to thank Mr.President for similar establishment in the South-East region. This shows that he is  carrying every part of the country along irrespective of political differences.