For the first time, this Tuesday, October 1, 100% Nigerian oil will be available at the pump in gas stations across the country. Enough to give hope to the country’s 219 million inhabitants after repeated shortages.
The big day is approaching for the richest man in Africa, Aliko Dangote. But it was long. Started in 2013, it took eight years of work to emerge from the ground “ the monster » as Aliko Dangote himself calls his refinery. It was necessary to overcome problems with the Lagos State government, with the communities, and marshy terrain leading to very significant additional costs. Dangote also affirmed last June during an economic forum in the Bahamas that if it had to be done again, “ he wouldn’t do it again ».
Also readIn Nigeria, the Dangote refinery begins supplying the country with gasoline
At the beginning of September, an agreement was finally reached between the Dangote refinery and Nigeria’s national oil company. NNPC is committed to supplying 385,000 barrels of crude per day to the refinery. In exchange, it will be the sole distributor of gasoline for the refinery.
Bickering over prices
There remain questions and disagreements around the price of this gasoline. Aliko Dangote seeks to minimize these tensions but the two parties have not yet agreed on the price of gasoline. The NPCC announced a sharp increase in pump prices (+45%) and placed the blame on Dangote, accused of selling its refined fuel too expensive. The billionaire also abdicates all responsibilities and explains that the price of this 100% Nigerian fuel has not yet been fixed.
What Dangote is pleading for is above all the end of gasoline subsidies. President Bola Tinubu interrupted them just after his election before finally reintroducing them given high inflation and the social crisis. “ When you subsidize a product, people inflate the price and the government ends up paying for something it’s not supposed to pay for., affirmed the Nigerian tycoon this Tuesday with our colleagues at Bloomberg, the price of gasoline here is about 60% of the price of neighboring countries and our borders are very porous. So it’s not sustainable, the government can’t afford these subsidies ».
Aliko Dangote does not hide it, he must make a profit for the viability of his refinery which still cost nearly 20 billion dollars
Tracers on tanker trucks
Infrastructure must enable Nigeria to achieve self-sufficiency. Until then, the continent’s leading oil producer had to import refined products. See the anomaly! In terms of production, the refinery should ultimately provide 650,000 barrels of oil per day. This will make it possible to supply all of the country’s gas stations and even export part of them.
Dangote announces that he will place trackers on trucks to know the country’s real consumption and avoid refining contraband oil that does not come from Nigeria.
Finally, the national company will sell its crude oil to the refinery in naira. which should ultimately make it possible to stabilize the national currency, which has been significantly devalued for two years.
