Fakoyejo OlalekanThe Independent Petroleum Marketers Association of Nigeria (IPMAN) has stated that Aliko Dangote’s oil refinery might exploit oil producers and Nigerians.
According to the oil marketers, Nigerians will be at the mercy of Dangote due to its refinery’s monopoly, as it will be the only refinery refining oil within the country, hence, dictating prices of the commodity.
Join our WhatsApp ChannelThey also ruled Dangote Refinery out as a perfect solution to the high cost of fuel in Nigeria, stating that the company will operate like every other private organisation seeking profit.
The refinery being built by Africa’s richest man, Aliko Dangote, has been promoted as a key solution to Nigeria’s yearly fuel scarcity, as it will reduce the country’s dependence on foreign refiners.
Nigeria, as an oil producer, has been exporting its crude to western countries for refinement and paying a significant amount to have it imported back to the country.
This increases the cost of operation for the Nigerian National Petroleum Company (NNPC) Limited and affects the cost of fuel at the filling stations.
Speaking about the impact Dangote Refinery will have on cost and availability of fuel, IPMAN Abuja-Suleja branch Secretary, Mohammed Shuaibu, said it will have little or no positive impact.
Shuaibu explained that there’s a need for more competition in the refinery market in Nigeria to ensure competitive prices and prevent monopoly.
“By the time you are removing subsidy, you should know that the market is not properly opened and there is no competition. They always tell you about Dangote Refinery. We must understand that Dangote is a privately owned company.
“The pipelines of that facility were not even designed to run in any Nigerian state, rather it was designed to run to neighbouring countries, and maybe that one in Lekki there, that is all.
“So, more or less, that refinery might still exploit us, because when there is no competition, the only supplier calls the shots. For had it been that as Dangote is producing in Lagos, another person is producing in Warri, while one refinery is pumping in Abuja, then there will be competition,” He told Punch on Monday.
Shuaibu added, “We can see, for instance, the competition in the telecommunications sector today. But the government will continue to deceive us that Dangote Refinery will come on stream, when we know that it cannot really solve the problem.”
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