This came as data obtained from the Nigerian Ports Authority showed that the NPA is expecting a vessel with 20,115,000 litres of Premium Motor Spirit, popularly known as petrol, on Wednesday, October 30, 2024, at the Tincan Island Port in Lagos.
Dangote confirmed the refinery’s readiness to supply fuel after closed-door talks with President Bola Tinubu at the Aso Rock Villa, Abuja.
He was part of a delegation of the Implementation Committee on Crude Oil and Refined Products Sales in Local Currency led by its chairman, Minister of Finance, Mr Wale Edun. NNPC GMD, Mr Mele Kyari, was also at the meeting.
The committee was at the Villa to brief President Bola Tinubu on its activities since the Federal Government first announced the policy last July.
He stated that the refinery can produce over 30 million litres of fuel daily at full capacity and currently holds 500 million litres in reserve, enough to supply the country for over 12 days without imports.
“We’re more than ready,” Dangote assured State House Correspondents, adding that the refinery’s production capacity could offset Nigeria’s fuel needs significantly.
Fuel queues have resurfaced, especially in cities like Lagos and Abuja, due to significant price hikes and supply chain issues.
NNPCL raised petrol prices to over N1,000/litre in some areas, exacerbating public frustration as some stations temporarily closed, leading to longer wait times and reliance on black markets.
The government attributes these challenges to recent logistical disruptions.
Addressing concerns of fuel scarcity in several parts of the country, he said, “I have a refinery. I’m not in the business of retail. If I’m in the business of retail then you can hold me responsible. But what I’m saying is that the retailers should please come forward and pick. If they don’t, come forward and pick, what do you want me to do?
So I am expecting either the NNPC or the marketers to stop importing; they should come and pick because we have what they need. And as they move, I will be pumping.
“I don’t know whether you understand what it takes to keep a billion liters inside our tank. It’s costing me money every day. If I will be able to collect the naira, I can actually charge somebody 32 per cent in interest. So right now, that’s what I’m losing.
“And you are talking about 500 million, I mean, we don’t print money. But the issue is that if they come and collect then you will not see any queues in the filling stations.”
In July the Federal Government approved the adoption of the naira in crude oil trading with local refineries.
It committed to allocating 445,000 barrels a day of crude oil for domestic consumption to local refineries, beginning with the Dangote Refinery for six months.
The African Export and Import Bank, whose Chairman, Prof. Benedict Oramah, held talks with President Tinubu that month, was selected as the pilot settlement bank to facilitate the transactions.
President Tinubu’s Special Adviser on Revenue, Mr Zacch Adedeji, who also serves as Chairman of the Federal Inland Revenue Service, said during the pilot phase of the crude allocation, products will be supplied at a fixed naira-to-dollar exchange rate that will be reviewed every six months.
At Tuesday’s meetings, however, Dangote revealed that Naira-based crude and petroleum transactions will employ a market-driven exchange rate and competitive crude pricing.
He said President Tinubu directed that both NNPC and independent marketers purchase petroleum on these terms, with Afreximbank stepping in as the settlement facilitator between Dangote, other refiners, and NNPC.
“Based on our meeting, we will use a market-determined exchange rate and also the crude price.
With that, Mr. President also directed that NNPC will buy. Marketers will also buy. They will be buying just like any other, that is NNPC retail.
“At the end of the day, we have also Afreximbank, which I think they are now going to be the go-between,” Dangote explained.
On his part, the Minister of Finance, Edun, noted that the move toward market-based pricing helps NNPC stabilise its finances, enabling greater funding for federal, state, and local governments to meet public obligations like salaries and infrastructure.
He said the private sector’s involvement and consistent policy support aim to sustain this progress, despite initial challenges.
“What made it most possible is that now we have market pricing of petroleum products. Relatedly, we have market pricing of foreign exchange that has set the economy on the path to industrialisation, because with private sector refining of crude oil, we now have raw materials, not just for agriculture, but for industry, chemicals, paints, for building materials for textiles, and of course.
“This is Mr President’s strategy and his policy of making conditions right for the private sector to invest, create jobs and grow the economy.
“Likewise, the market pricing of petroleum products, has also paved the way for NNPC to restore its balance sheet, and financial fortunes, and to give the federal state and local governments more funding to allow them to meet their obligations, salary payments to workers, social services to the population generally, and of course, key infrastructure development,” Edun explained.
The Nigerian Ports Authority said it is expecting a vessel with 20,115,000 litres of petrol on Wednesday, October 30, 2024, at the Tincan Island Port in Lagos.
The NPA, in its ‘Daily Shipping Position’ obtained by The PUNCH, said that 13 other vessels carrying different consignments, including used cars, will also berth at the ports.
“The remaining 13 vessels will berth with different consignments including butane, containers, AGO (diesel), and bulk wheat, among others,” the NPA stated.
The expected vessels will berth at Kirikiri Lighter Terminal, Five Star Logistics, NigerDock, and Josepdam Port Services, among others.
The NPA added that vessels with 300 units of used cars arrived on Monday while another one with 250 units is expected to arrive on Saturday, November 2nd.
The NPA said that a vessel with 26,820,000 litres of AGO (diesel) which arrived at the port on Tuesday, is currently discharging.
