The recent development concerning the serious and weighty allegations raised against international oil companies (IOCs) operating in Nigeria by Aliko Dangote, Africa’s richest man and the founder of the Dangote Refinery, through the Vice President DavaKrumar Edwin which claimed that the the IOCs are sabotaging the good effort of his Refinery calls for full scale investigation. ..Read Full Article
We make this clarion call because the Dangote’ Refinery is a crucial industry for the survival of our national economy.
Dangote in that piece which is already in the public space, claimed that these IOCs are engaged in a deliberate conspiracy to undermine the operations and survival of the Dangote Refinery, an asset that is critical to the economic stability and the future of Nigeria.
The National Context and Importance of Dangote Refinery to Nigeria .
The Dangote Refinery, located in the Lekki Free Trade Zone, Lagos, is one of the largest industrial projects in Africa with Nigeria national interest embedded in it. It has a refining capacity of 650,000 barrels per day, it is poised not only to meet Nigeria’s domestic fuel needs but also to become a significant exporter of refined petroleum products. The refinery’s successful operation is expected to drastically reduce Nigeria’s reliance on imported fuel, save billions of dollars in foreign exchange, and create thousands of jobs. The above explanation tells you in a passing glance what we meant by embedded national interest.
Given the substantial investment and the strategic importance of this project, any threat to its viability is not just a concern for Dangote Group but for the entire nation.We are not ready to have the night mare experience of the death of companies like DSC Ovwian – Aladja Ajaokuta Steel plant which were to be the foundation of our technological take off in the early eighties.
Dangote’s Allegations
Aliko Dangote has alleged that certain IOCs are intentionally plotting to frustrate the survival of his refinery. While specifics of these plots have not been publicly detailed, the allegations suggest actions that could include lobbying against the refinery, influencing regulatory policies to the detriment of the project, and creating unfair competition in the market.
The magnitude of these allegations cannot be overstated. If true, they represent a significant breach of both business ethics and national interest. The implications are far-reaching, potentially stalling Nigeria’s progress toward energy self-sufficiency and economic resilience.
Historical Context of IOC Activities in Nigeria
Nigeria’s relationship with international oil companies has been complex and often contentious. While these companies have been pivotal in harnessing Nigeria’s vast oil reserves, they have also been at the center of numerous controversies involving environmental degradation, tax evasion, and political interference.
In this context, Dangote’s allegations resonate with historical grievances and a broader narrative of exploitation and underdevelopment often attributed to the activities of IOCs in Nigeria.
The Nigerian Government should make it compulsory for the IOCs to build their own Refineries in Nigeria and do their normal business.
The idea of trying to kill the only one available for us is not acceptable.
Economic Implications
The Dangote Refinery is a cornerstone of Nigeria’s strategy to diversify its economy away from crude oil exports towards value-added petroleum products. The potential disruption of its operations could have severe economic repercussions.
Firstly, it could maintain the status quo of Nigeria’s dependency on imported refined products, thereby perpetuating a cycle of foreign exchange outflows. Secondly, it could deter future investments in the country’s refining and petrochemical sectors, thus stalling industrial growth and job creation. Lastly, it could undermine the confidence of domestic and international investors in the Nigerian economy.
A Call for Presidential Intervention
In the light of these serious allegations, there is an urgent need for a full-scale investigation to be carried out by the Nigerian government. In particular, we hereby call on President Bola Tinubu, to take immediate and decisive action on this issue of national importance.
An independent commission should be established to investigate the veracity or validity of Dangote’s claims. It is not enough for Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA to come out to alley us of our fear that the allegation is not true. There must be an enquiry to look at the water passing under the bridge in a very transparent manner.
The Dangote Refinery represents a beacon of hope for Nigeria’s economic future. The allegations made by Aliko Dangote against the international oil companies are not just a personal grievance but a matter of national importance.
While it is too early to take side, the opaque practice and their divide and rule method for which they are known , gives flesh to the Dangote’ allegation that he may not be too far from the truth.
The prism of the ruled and the people’s public court of opinion , consider it imperative that the Nigerian government, under the leadership of His Excellency, President Bola Ahmed Tinubu, should treat this issue with the gravity it deserves. A full-scale investigation will not only address Dangote’s concerns but also demonstrate Nigeria’s commitment to the survival of her economy. We have no confidence in the debunked report. The former Governor of Central Bank, before we knew that he was operating Bank accounts without BVN, he was aspiring to become president feigning innocence, not knowing he is a son of the devil. One of the reasons I am bitter with the IOCs is about OBJ revelation, who said, he even approached the IOCs to build their own Refineries to do business in Nigeria, they refused.
Now a Nigerian man has built one, they want to frustrate it to justify their refusal to build their own Refineries. .We also call on President BAT to take the OBJ message back to the IOCs.
We are convinced that a thorough investigation into these alligation will demonstrate Nigeria’s
Patriotism and commitment to protecting its strategic investments and ensuring fair play in its economic landscape no matter whose ox is gored.
The nation’s economic sovereignty and the well-being of its citizens very well depend on the actions taken or in action of the Tinubu administration in response to these weighty allegations.
Just like Edwin, the Vice president of Dangote’ Refinery advocated, we align with him to urge the Federal Government and the National Assembly to expedite the implementation of the Petroleum Industry Act (PIA) to ensure Nigeria’s interests are safeguarded. It is indeed absurd to note that while other countries like Ghana have legislated against importing contaminated fuels, Nigeria is yet to take similar legislative steps to protect its citizens and her economy.
The allegations made by the Dangote’ Group raised critical concerns about the integrity of Nigeria’s oil industry and its regulators. If true, these actions by the IOCs will not only threaten the survival of the Dangote Refinery but also undermine Nigeria’s economic sovereignty and public health. NoA thorough investigation by the Federal Government is a sinequanon to address these issues, ensure fair competition, and promote local industries not just only the Dangote’ Refinery.
This commission should be composed of experts in the oil and gas sector, representatives from the Nigerian National Petroleum Company Limited (NNPC)L, legal professionals, and economic analysts. Their mandate should include the following but not limited to it :
Investigation of the Alleged Conspiracies:
A thorough examination of any actions taken by IOCs that could be construed as attempts to undermine the Dangote Refinery must be scrutinized to details because there no smoke without fire.
Regulatory Review:
There should be a thorough assessment of the role of regulatory bodies in either facilitating or hindering the refinery’s operations should be properly looked into without consideration for sacred cows.
Market Practices:
The panel should weigh or assess the competitive practices within the oil and gas market to ensure a level playing field.
Legal Recourse:
Identifying any legal breaches and recommending appropriate actions or sanctions against the entities found culpable.
Let us also remember that
The Dangote’ Group pointed out in their allegation that despite meeting international standards and exporting diesel and aviation fuel to Europe, the Dangote Refinery faces opposition from industry players intent on maintaining high prices for these products in Nigeria. They appealed for regulatory support to enable the refinery to operate effectively and contribute to the nation’s economic growth..
All the agencies involved must prove their innocency or repent where they are guilty.
How can the IOC, s regulated by the federal government through her various agencies like NURPC now appear to be the regular of the sector. It is the dog that wags the tail, it is an error for the tail to wag the dog.
Conclusion
In conclusion, the, Dangote’s allegations against the IOCs and the regulatory lapses in Nigeria’s oil sector calls for immediate government intervention. The FG should prioritize the enforcement of the PIA and support local refineries .
Through this effort Nigeria can reduce its dependency on imported refined products, create jobs, and foster economic prosperity. The time for decisive action is now, to secure Nigeria’s energy future and protect the well-being of its citizens. President Bola Ahmed Tinubu, the ball is in your court, act now before it will be too late.
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