As the last days of his two-term presidency draws closer, Muhammadu Buhari who is unarguably Nigeria’s longest-serving petroleum minister has commissioned the Dangote multipurpose Refineries complex in Lekki, Lagos.
It is a development that has left not a Few Nigerians excited as this, it is believed, will help the country overcome it’s petroleum products supply challenges.
When the President came into office in 2015, petrol pump price was 87 naira per litre, and he was determined to bring down the pump price for the benefit of the citizenry.
The pump price has risen steadily, and is currently sold officially at 195 Naira per litre at the pumps, but as high as 400 hundred naira at some other filling stations across the country.
Average daily petroleum consumption is put 68 million litres per day, though this figure is disputed by some industry players who say the actual figure is half of that- insisting, the remainder is smuggled to neighbouring countires.
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That Nigeria is a major producer of crude is no longer news, but the fact that it imports refined products is the sour point as the government-owned refineries are perpetually undergoing rehabilitation and repairs.
Memoranda Of Understandings MOU for the Rehabilitation of the refineries in Kaduna and Port Harcourt, costing almost 2.5 billion US dollars was done months ago.
So, as it seems it is Dangote Refinery to the rescue.
The massive complex covering approximately 2,635 hectares in Lekki Lagos, built at the cost of over 19 billion U.S dollars, is expected to process about 650,000 barrels of crude per day.
At full capacity, it can meet 100% of Nigeria’s consumption needs.
The Nigerian National Petroleum Company Limited, NNPCL has a 20% equity shareholding in Dangote refinery.
Is this enough to curb a feared monopoly?
Prof Iledera worries that there may be implications for the downstream petroleum market.
When the government-owned refineries, for which over 2 billion dollars have been earmarked for the rehabilitation eventually come alive in the next 24 or so months, as outlined in the respective terms, will it be a case of the more the merrier? Or will Dangote- a businessman feel shortchanged.
A good one no doubt, Nigerians can only hope for the best in the days ahead, with regards to a naturally-endowed resource- oil.
Editor: Paul Akhagbemhe
