Our future is in private sector driven growth. We are here precisely because government is inept in running any business. Our refineries are a good sample of the abundant data.
They worked for just a decade before irreversible acts of sabotage started to bring them down from 1987 and corruption has since made sure they never breathe again. Intravenous drips of billions of dollars have failed to resuscitate them. We are now 100% dependent on imported fuel sourced by the same government agent—NNPC—which superintended the strangulation of the refineries.
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This importation is now a meta business for corrupt officials and oil cartel. Even with sharp reduction of the number of vehicles plying our roads and the closure of thousands of factories, NNPCL is still claiming that we consume 60 million litres a day of fuel in the country. Haba Jama’a! Akwai lahira fa, wallahi. Tam.
Dangote and Monopoly
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Then Dangote refinery happened. It has, they said, the capacity to refine 650,000bpd, more than what we consume daily. I just listened to the head of NMDPRA over BBC Hausa Service, saying—and sounding innocent—that Dangote wants monopoly but it is the duty of his organization to guard the interests of Nigerians. “How can you go to the market and be forced to buy from just one trader?” he asked.
Yes. Dangote must not have a monopoly. But where are the other traders? Our three refineries are comatose. They would have given him a bloody nose. Abdulsamad’s and others are not completed. So how can we accuse him of monopoly in a vacuum? Charles Law applies here. Simple.
Unless if NRRPDM is saying that Dangote must compete with global players that refine oil in America, Russia, Europe, etc. for Nigerian market—that NNCPL should be allowed to continue importing refined oil using our scarce dollars despite the presence of enough locally refined oil produced by Dangote. Is the NNPC the custodian of world trade treaties? Why must we sacrifice our hard earned forex in these hard times just to patronize foreign businesses? Or is it fighting to preserve its lucrative business?
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Create Competition
What NMDPRA should do in the situation is to ensure that Dangote doesn’t take advantage of the clear field and exploit Nigerians. At no point must he sell to Nigeria fuel that is above international price or more than the price of importation minus freight, insurance and other charges. Other players interested in jumping into the fray must also be free to do so. At no point must they be blocked or sabotaged by Dangote or anyone else. Meanwhile, NNPCL must fight all odds and resume refining in its three refineries. It can then compete with Dangote and ensure that Nigerians get the best deal.
We must not support the importation of a litre of fuel if it is locally made available by manufacturers—Dangote or whoever. It is a waste of forex. High forex demand mainly due to importation of fuel is what depreciated our Naira and made price of fuel—and food—unacceptable. Stop fuel importation and things will get better. Allow the cartel its privileges and you lose the government.
Privatise Refineries
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Finally, I will suggest to our bold and proactive President that it is time to privatise our refineries. Urgently. Government in Nigeria does not have the rectitude to run money generating business anymore. Keep the refineries in the hands of NNPCL and they will continue—as they have done for decades—to channel away into private accounts billions of dollars without refining a single litre of fuel. Sell them to private owners and they instantly become functional. Only then can we give Dangote a good run for his money.
But we cannot kill our refineries and kill Dangote’s. And the cats grow fatter by the day. That is killing Nigeria. More so, when the masses are suffering precisely because of fuel induced poverty and are knocking at the gates of Abuja.
Pardon me! On this, I am with Dangote.
