NIGERIA FUEL: DO A DOMINEERING DEAL WITH DANGOTE
By Bala Ibrahim
Nigeria, the country that continues to dominate as Africa’s largest producer of Crude Oil, with a proven reserves of nearly 40 billion barrels, and a production capacity of more than 2 million barrels per day, is almost in permanent scarcity of fuel. History has shown that, 1970s oil boom brought wealth but also dependency on oil revenues, setting the stage for future economic vulnerabilities. In the 1980s and 1990s, Nigeria began to face recurring fuel shortages due to declining oil prices, corruption, and topmost, mismanagement. Government after government have made efforts to improve the situation, but with every passing day, things are becoming more unpleasant. As far as fuel supply is concerned, Nigeria seems to be moving from bad to worse. Why?
When President Bola Ahmed Tinubu came on board last year, under the ‘Renewed Hope Agenda’, which is a comprehensive 8-point plan, with the intent of tackling poverty, through a sustainable development and improved living standards of the people, the biggest expectation of the people is that, fuel scarcity would be scrapped. The commodity would not only be available but affordable. However, that seems to be an illusion.
The beliefs of availability and affordability were fortified by a number of factors, the first being the fact that Tinubu is the first businessman to be the President of Nigeria. By antecedent, he is enterprising commercially, industrially and professionally. He had worked as an accountant successfully, for successful international companies. He had worked for the oil company, Mobil Oil Nigeria, where he rose to the position of the company’s Executive. This means, he is familiar with the issues of demand and supply, and conversant with the intrigues and shenanigans of the oil business.
When he announced the removal of subsidy, on the very day he took the oath of office, at the very podium of taking the oath, citing the colossal corruption embedded in the scheme, his euphoria was that of a man that was convinced he could defeat the culprits. But one year on, the situation has not changed commensurate to the expectations. Fuel is persistently scarce and gradually becoming far away from affordable.
For years, the refineries in Nigeria have been out of function, and while they are suppose to be the cash cow of the country, because of corrupt officials, who benefit more from importing fuel, instead of refining it at home, scarcity of the product has remained a permanent feature of the country’s fate. Everyone is asking, why is Nigeria dragging it’s feet with regards to fixing its refineries?
Some say the reasons are complex, but boil down to poor management, corruption, sabotage and a lack of political will for reform. With his experience and the exhibited determination, President Tinubu, can not be said to lack the political will and the will of reform, I think. So where lies the problem?
Petrol marketers are attributing the recent petrol scarcity to supply challenges faced by the Nigerian National Petroleum Company Limited, NNPCL, which is the sole importer of the commodity.
But a solution to the problem came last week, a solution that may capture the mission of the President in particular, and vision of the country and continent in general. Alhaji Aliko Dangote, the President of Dangote Group, and the promoter of the Dangote refinery, presented Nigeria with the first sample of petrol from his newly commissioned refinery. The refinery, with a capacity of 650,000 barrels per day, has promised to quench the country’s thirst for fuel, eventually. Dangote said, and I quote:
“I would like to commend the people of Nigeria and the government of President Bola Tinubu for providing us with the platform for growth, development, and prosperity. I also want to thank him personally for introducing the idea of exchanging crude for Naira. This initiative will contribute to the stability of the Naira. With this refinery in operation, we will have a clear picture of Nigeria’s true consumption. We will be able to track every truck and shipload.”
This is a good move, and one opportunity the government and the country must grab. Yes, Nigeria needs to do a domineering deal with Dangote, with a view to addressing the incessant scarcity of fuel in the country. There is nobody, I repeat nobody, that is not feeling the pinch of the problem. And the pain is increasing as the days pass. Those who can afford it, and they are in the minority, are doing so at the expense of other essentials of life. And those who can’t afford it, who are now in the majority, are being overburdened by their unprotected vulnerability. This is indeed a sad situation for a rich country like Nigeria.
Many have resorted to prayers, with the Christians taking solace in the Bible, where proverb 10:28 says, the expectations of the righteous result in joy, but the hopes of the wicked will perish. The path of the LORD is a refuge for the innocent and ruin for those who do evil. The righteous will never be shaken, but the wicked won’t dwell in the land.
The Muslims are equally prayerful, relying on the Quran, thus: Do not lose hope in Allah’s mercy, for Allah certainly forgives all sins. He is indeed the All-Forgiving, Most Merciful. Turn to your Lord ˹in repentance˺, and ˹fully˺ submit to Him before the punishment reaches you, ˹for˺ then you will not be helped.
If our situation is due to our sins, before we loose help, may Allah forgive us and bring an end to this persistent problem. But beyond prayers, on this issue of fuel scarcity, that is pushing prices through the roof, there is the need for the government to do a domineering deal with Dangote. That is the best way to go, I believe.
NIGERIA FUEL: DO A DOMINEERING DEAL WITH DANGOTE