Economy
IOCs Want Our Oil Refinery to Fail—Dangote
By Aduragbemi Omiyale
Some International Oil Companies (IOCs) have been accused of plotting the failure of the Dangote Oil Refinery and Petrochemicals located in Lagos owned by Africa’s richest man, Mr Aliko Dangote.
The oil facility with the capacity to refine 650,000 barrels of crude oil per day commenced operations some months ago and is billed to begin the supply of premium motor spirit (PMS), otherwise known as petrol from next month.
The Vice President for Oil and Gas at Dangote Industries Limited (DIL), Mr Devakumar Edwin, while speaking with a group of Energy Editors at a one-day training programme, lamented that these IOCs were doing everything to frustrate the survival of the organisation by deliberately frustrating the refinery’s efforts to buy local crude by jerking up high premium price above the market price, thereby forcing it to import crude from countries as far as United States, with its attendant high costs.
He accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of being a willing tool by granting licences, indiscriminately, to marketers to import dirty refined products into the country.
“The federal government issued 25 licences to build a refinery and we are the only one that delivered on the promise. In effect, we deserve every support from the Government.
“It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 per cent of our production, have been exported. We are calling on the federal government and regulators to give us the necessary support to create jobs and prosperity for the nation,” Mr Edwin informed the journalists.
“While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are trying their best to allocate the crude for us, the IOCs are deliberately and wilfully frustrating our efforts to buy the local crude.
“It would be recalled that the NUPRC, recently met with crude oil producers as well as refinery owners in Nigeria, in a bid to ensure full adherence to Domestic Crude Oil Supply Obligations (DCSO), as enunciated under section 109(2) of the Petroleum Industry Act (PIA). It seems that the IOCs’ objective is to ensure that our petroleum refinery fails.
“It is either they are deliberately asking for ridiculous/humongous premium or, they simply state that crude is not available. At some point, we paid $6 over and above the market price. This has forced us to reduce our output as well as import crude from countries as far as the US, increasing our cost of production…
“It appears that the objective of the IOCs is to ensure that Nigeria remains a country which exports crude oil and imports refined petroleum products.
“They (IOCs) are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their GDP, and dumping the expensive refined products into Nigeria – thus making us to be dependent on imported products.
“It is the same strategy the multinationals have been adopting in every commodity, making Nigeria and Sub-Saharan Africa to be facing unemployment and poverty, while they create wealth for themselves at our expense. This is exploitation – pure and simple.
“Unfortunately, the country is also playing into their hands by continuing to issue import licences, at the expense of our economy and at the cost of the health of the Nigerians who are exposed to carcinogenic products,” he said.
Mr Edwin noted that, “Even though we are producing and bringing out diesel into the market, complying with ECOWAS regulations and standards, licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian market.
“Since the US, EU and UK imposed a Price Cap Scheme from February 5, 2023 on Russian petroleum products, a large number of vessels are waiting near Togo with Russian ultra-high sulphur diesel and, they are being purchased and dumped into the Nigerian market.
“Some of the European countries were so alarmed about the carcinogenic effect of the extra high sulphur diesel being dumped into the Nigerian market that countries like Belgium and the Netherlands imposed a ban on such fuel being exported from its country, into West Africa, recently.
“It is sad that the country is giving import licences for such dirty diesel to be imported into Nigeria when we have more than adequate petroleum refining capacity locally.”
It would be recalled that in May, Belgium and Netherlands adopted new quality standards to halt the export of cheap, low-quality fuels to West Africa, harmonising its standards with those of the European Union.
These measures synchronise fuel export standards with the European domestic market, specifically targeting diesel and petrol with high sulphur and chemical content.
Historically, these fuels, with sulphur content reaching up to 10,000 ppm, were exported at reduced rates to countries like Nigeria and other West African consumers.
Belgium’s Minister of Environment, Zakia Khattabi, announced that his country followed the Netherlands, which in April 2023 also prohibited the export of low-quality petrol and diesel to West Africa via the ports of Amsterdam and Rotterdam.
Mr Khattabi emphasised that the Netherlands’ decision to restrict dirty fuel exports had redirected the trade to Belgium, now used by oil producers and traders to export gasoline with excessively high levels of benzene and sulphur.
“For far too long, toxic fuels have been departing from Belgium to destinations including Africa. They cause extremely poor air quality in countries such as Ghana, Nigeria, and Cameroon and are even carcinogenic,” said Mr Khattabi.
In September 2017, an investigation by an international organisation, Public Eye, revealed that polluted and toxic fuels were being exported on a large scale from the ports of Rotterdam and Amsterdam for export to African markets.
As much as a quarter of the petrol and diesel available in West Africa originates from the ports of Amsterdam, Rotterdam, and Antwerp. These fuels contain sulphur and other pollutants, such as cancer-causing benzene, in quantities up to 400 times the limits permitted in Europe. The Netherlands and Belgium were enjoined to enforce regulations to shield millions of Africans from exposure to toxic fuels.
By Adedapo Adesanya
The Minister of State for Finance and chairman of the Federation Account Allocation Committee (FAAC), Mrs Doris Uzoka-Anite, has cautioned that a projected surge in oil and gas revenues following President Bola Tinubu’s latest executive order could trigger inflationary pressures and exchange rate volatility if not carefully managed.
She said that the recent executive order mandating the direct remittance of certain oil sector revenues to the federation account would provide regulatory clarity and significantly strengthen revenues accruing to the federation account, but warned that sudden liquidity injections into the economy may complicate monetary policy coordination with the Central Bank of Nigeria and erode the real value of allocations to federal, state and local governments.
While addressing members of FAAC in Abuja, Mrs Uzoka-Anite commended President Tinubu on the order, describing the development as a structural fiscal correction aimed at restoring constitutional discipline to petroleum revenue management and enhancing distributable income across the three tiers of government.
She said that the revenue outlook was improving due to ongoing structural reforms introduced by the Federal Government.
According to her, the newly implemented tax reform measures are broadening the tax base, improving compliance and enhancing administrative efficiency.
“Also, the executive order signed by Mr President on February 13 is reinforcing revenue discipline in the oil and gas sector and reducing leakages,” she said.
The minister said that the order suspends the 30 per cent allocation to the Frontier Exploration Fund (FEF) and suspends the 30 per cent management fee on oil and gas profit payable to NNPC Limited.
She said that the order also directed that gas flare penalties be paid into the federation account, and mandated full remittance of petroleum revenues without unconstitutional deductions.
Mrs Uzoka-Anite said that the reform marks a shift from a retention-based oil revenue model to a gross remittance, federation-first model.
“The implications for FAAC are very significant; more oil and gas profit will now flow directly into the federation account.
“Gas flare penalties will become distributable revenue, and previously retained management fees will no longer reduce remittable inflows,” she said.
She said that the reforms were expected to result in higher monthly gross inflows into the federation account, and increased allocations to federal, state and local governments.
The minister said that a retrospective audit of the FFF, the Midstream and Downstream Gas Infrastructure, was due, and NNPC management fee deductions could lead to recoveries that may provide a one-off fiscal boost.
She welcomed the improved revenue outlook and cautioned against the risks associated with sudden liquidity injections.
“Experience shows that when revenues rise sharply and are distributed fully and immediately, large liquidity injections can increase inflationary pressures, complicate monetary management and reduce the real purchasing power of allocations,” she said.
She said that excess aggregate demand, exchange rate pressure, asset price distortions and inflationary risks could arise if increased inflows were not carefully managed.
Mrs Uzoka-Anite said that to mitigate such risks, she proposed phased disbursement of one-off recoveries.
She suggested that retrospective recoveries be staggered rather than injected into the economy in bulk, with a portion temporarily warehoused in a stabilisation buffer.
She also recommended strengthening the excess crude and stabilisation buffer mechanism to channel part of incremental inflows into a fiscal stabilisation window.
“This could offset revenue shortfalls in weaker months and reduce procyclicality in spending.
According to her, enhanced coordination with the CBN would be pursued to align fiscal injections with liquidity management tools and support open market operations where necessary.
Mrs Uzoka-Anite urged states and federal Ministries, Departments and Agencies (MDAs) to prioritise capital expenditure over recurrent expenditure.
She called for investment in infrastructure, agriculture, energy and other productive sectors, and avoid unsustainable wage or consumption spikes.
“Productive spending expands supply capacity and mitigates inflation,” she said.
She also announced plans to introduce monthly revenue transparency dashboards, production-to-remittance reconciliation reporting, and clear reporting of incremental inflows arising from tax reforms and the executive order.
The junior finance minister said that the reforms presented an opportunity to deepen fiscal federalism, enhance distributable revenue, restore constitutional clarity and strengthen trust among tiers of government.
She also advised that increased revenue must not translate into fiscal complacency.
“We must resist the temptation to treat incremental inflows as permanent windfalls. We should reduce debt burdens, clear arrears responsibly, build buffers and invest in growth-enhancing sectors,” she said.
By Adedapo Adesanya
The chairman of Dangote Group, Mr Aliko Dangote, has said that within the next five months, Nigerians should be able to purchase shares of Dangote Petroleum and Refinery.
Mr Dangote made this revelation on Sunday during a tour of the facility by the chief executive of the Nigerian National Petroleum Company (NNPC) Limited, Mr Bayo Ojulari, alongside members of the company’s executive management.
The $20 billion refinery is the largest single-train refinery in the world with 650,000 barrels per day refining capacity. There are efforts to boost the capacity to 1.4 million barrels per day soon.
Speaking with journalists, Mr Dangote said, “And the other issue is that they (NNPC) are holding 7.25 per cent of the shares that we have here, which is more than the shares Elon Musk has in Tesla. And they are holding that on behalf of Nigerians,” he said.
“So individually, Nigerians too will have an opportunity in the next, maybe a maximum of four to five months. There will actually be an opportunity to buy the shares.”
He added that shareholders will have the option to receive their dividends in either naira or dollars, as the refinery also earns in dollars.
Commenting on Mr Ojulari’s visit, the billionaire businessman said the NNPC, represented by Mr Ojulari and its management team, was not just a guest but a shareholder.
“Today is really our best day ever” at the facility. I know NNPC invested in us when we were not really sure whether the refinery would be successful.
“So that’s the kind of level of confidence. But right now, the relationship with the new set of people that we have at NNPC, I think the sky is the limit, and we will cooperate and also make sure that we work together to make sure that we make Nigerians proud.”
Speaking on prospects of partnership with NNPC in the upstream sector, he said, “We have block 71, 72, but we’re going to look much deeper”.
“Most likely, depending on our own discussions with them, we will partner with them, maybe in some of the upstream. They, too, will partner with us here because here is not just a refinery, it’s an industrial hub.
“And that’s why we’re doing linear alkaline benzene, which is a raw material for detergents, ” he added.
By Aduragbemi Omiyale
The Nigerian Exchange (NGX) Limited has launched an investigation into trading activities on the shares of Zichis Agro-Allied Industries Plc.
A notice from Customs Street on Monday disclosed that this has led to the suspension of the company for now.
This development comes about a month after Zichis was listed on the domestic bourse and placed in the growth board of the NGX.
In the circular, it was disclosed that the suspension may be lifted after the conclusion of the findings, but for now, investors will not be able to trade the organisation’s securities on the NGX platform.
“The suspension of trading in Zichis shares shall be lifted upon the conclusion of an investigation into the trading activities on the company’s shares,” a part of the disclosure stated.
The bourse explained that it wielded the big stick on Zichis in compliance with Rule 7.0, Rules on Suspension of Trading in Listed Securities, Rulebook of The Exchange (Issuers’ Rules).
This part of the law states that, “Notwithstanding any of the foregoing provisions, the exchange may, in accordance with any of its rules, place the trading of any security on suspension.
“It may also do so if it is of the view that such suspension will be in the interest of the investing public and in accordance with the SEC Rules.”
In announcing the action on the firm, the NGX declared that, “The shares of Zichis Agro-Allied Industries Plc have been suspended from trading on the facilities of Nigerian Exchange Limited (NGX), effective today, Monday, February 23, 2026.”
Business Post reports that last week, shares of Zichis appreciated by 60.74 per cent to N17.36. It joined the stock exchange at N1.81, indicating it has gained N15.55 or 859.12 per cent in one month.
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