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We Will Export Petrol If Marketers Boycott Our Product — Dangote Refinery

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The Dangote Petroleum Refinery has warned that it may export its Premium Motor Spirit (petrol) if Nigerian National Petroleum Company Limited (NNPCL) and local petroleum dealers refuse to purchase it.

Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, made this statement on Monday’s Brekete Family live show.

Edwin, who confirmed that the refinery has started the production of petrol, said local oil traders have resorted to importing diesel and aviation fuel, blocking local sales of Dangote fuel.

“We have been exporting aviation fuel, we have been producing kerosene, we have been producing diesel, but yesterday, we started the production of PMS. So, that was the last stage. The only thing now left out is petrochemicals.

“So, the good news for the country is we have started producing PMS from our refinery since yesterday (Sunday),” he confirmed.

Asked if the petrol would be sold locally, Edwin replied, “Well, I explained how there has been a kind of a blockade from lifting our products within the country. The traders have been trying to block (it), and so now we have been exporting our petroleum products. PMS, we are ready to pump in as much as possible to the country.

“But if the traders or NNPC are not buying the product, obviously, we will end up exporting the PMS as we are doing with the aviation jet and diesel,” he declared.

Edwin expressed surprise that the company started facing different challenges it never expected when the refinery was set to commence operations.

He recalled that the philosophy initially was to add value to the raw materials available in the country, regretting that Nigeria is still exporting crude and importing refined petroleum products after over three decades.

“The philosophy is to take the crude, and instead of exporting the crude, refine it, add value; export the finished products, and supply the finished products locally. But unfortunately for us, we started facing challenges with the crude supply.

“What is happening today? We are struggling to get the crude. We are now importing the crude from the US, we are importing from Brazil, and from other parts of the world. So, the whole philosophy has gone upside down. After all these decades, we are exporting crude, importing products,” he added.

He stated further, “The same thing is continuing. We are not getting enough crude allocation, and the crude is still being exported. We are forced to import crude from outside. Yes, we are getting some crude locally, but it’s not adequate.”

Commenting on the laws governing domestic crude supply obligations, he said, “As per the laws, no crude can be exported, unless all the local refineries requirements are met. That is specified in the Petroleum Industry Act. But we are struggling to get the crude.”

He revealed that the company has started the construction of four crude tanks of 120 million litres capacity each to store imported crude due to low local supply.

“In fact, if you see the refinery, we are building four new crude tanks, each of the tanks has 120 million litres capacity. We have to construct the tanks because we are not getting the local crude. We import from overseas, which means we should have enough stocks due to the shipping time,” he maintained.

  • Lack Of Local Patronage

Despite having a gantry that can load 2,900 tankers per day, Edwin disclosed that the refinery has not loaded up to 5 per cent of the gantry’s capacity owing to low local patronage.

“Go and see our product gantry, we can load 86 tankers at any given time. We can load 2,900 tankers of petroleum products every day, but we are not even loading five per cent, because those who are interested in the trading business, feel that probably this local production is going to affect their established interest, so they are not allowing our products to be sold locally.

“They are not coming to lift our products. So, what are we doing? We are exporting the products.

“Yes, the refinery can survive, we can import the crude, we can export petroleum products, and we can survive. But is that why he invested in the refinery?” he queried.

On fuel quality, Edwin noted that the refinery has the best laboratory in the world, boasting “No refinery can come and challenge that they have more equipment than us,” he stated.

He added that the petroleum refinery has adopted what he called the Euro 5 grade, saying this is the grade which is acceptable in Europe or the US.

“Our product can be exported to any part of the world, the best in quality, the lowest in sulphur. In terms of pollution, we have no pollution. So, we are producing the best quality products. That is how we are already exporting our product.

“Our aviation jet fuel has gone to Europe, and we are exporting our diesel. So, the refinery has been successfully launched and producing the products,” he added.

The Dangote boss disclosed that one of the philosophies of the business is that wherever it is going to operate, the business should be highly environmentally friendly.

And then, also, every business we go in, we focus on the cost of production and the energy efficiency. And the same thing, philosophy, has been adopted here. So, as we start producing, we find that the energy costs are the lowest.

  • ‘Dangote Not Monopolist’

The vice president expressed concern that some people still accuse the President of the Dangote Group, Aliko Dangote, of being a monopolist, saying the founder was in business to create wealth and job opportunities, even while making profits.

He disclosed that the money being made by Dangote is being reinvested into the country, creating more wealth in the country, and adding to the Gross Domestic Product.

“So, we invest our profits and borrow, and we are investing. This is how Alhaji Aliko has been investing in businesses.

“We are making money, yes, but where is the money going? It is not going to Dubai, it is not going to Switzerland, to some bank accounts. It is not going to buy properties. When I joined him in 1991, Alhaji Aliko had a house in the United States, he had a house in the United Kingdom; everything is sold today, and he is still living in his 35-year-old house.

“He has not even added more houses within the country. Everything he’s putting into manufacturing, creating employment and creating wealth, and yet he is being called a monopolist,” he stated.

Industry sources confirmed to our correspondent on Sunday that the Dangote PMS would hit the market soon.

The sources, who pleaded anonymity, told our correspondent that the government and the Dangote Group are working out modalities for the circulation of the product.

A government source hinted that the sale and distribution of the PMS is being sorted out with the Federal Government.

The source added that only the NNPC would be authorised to sell the Dangote fuel at the moment.

Recall that the Dangote petrol was supposed to have been out since June, but the refinery battled crude shortage and entered into a brawl with the Nigerian Midstream and Downstream Regulatory Authority, which accused the refinery of producing substandard diesel.

The intervention of the Federal Government that crude oil should be supplied to the refinery in the local currency seems to be yielding the desired result.

Recall that Dangote and other local refineries have repeatedly accused international oil companies of not selling crude to them.

Recently, the Federal Government announced that the crude deal would commence in October.

The management of Dangote Group also alleged that the IOCs insisted on selling crude oil to its refinery through their foreign agents, saying the local price of crude oil will continue to increase because the trading arms offer cargoes at $2 to $4 per barrel, above Nigerian Upstream Petroleum Regulatory Commission official price.

The group also alleged that the foreign oil producers seem to be prioritising Asian countries in selling the crude they produce in Nigeria.

Recall that last month, the Dangote refinery engaged in an exchange of words with the NUPRC over the alleged supply of 29 million barrels of crude oil to the refinery.

The Dangote Group had accused the NUPRC of failing to effectively enforce the domestic crude supply obligations regulations, saying the refinery had yet to get enough crude locally.

Reacting, the NUPRC debunked the claim, stating that it facilitated the supply of over 29 million barrels of crude oil to Dangote from January to June 2024.

The NUPRC argued that it had facilitated the domestic supply of crude oil to Dangote refinery and other refineries using the monthly production curtailment platform.

However, in a swift response, the company denied receiving 29 million barrels of crude from any source.

 

Credit: The Punch

BIG STORY

UBA, Wema, GTB Resume International Transactions On Naira Cards After Years Of Suspension

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Three commercial banks in Nigeria have revealed the recommencement of international transactions on their naira cards. In separate messages to customers, the United Bank of Africa (UBA), Wema Bank, and Guaranty Trust Bank (GTB) confirmed that the service is back on their naira cards. This change comes about three years after several banks halted international transactions on naira debit cards.

In a recent notice to customers, UBA stated the resumption is part of its ongoing commitment to delivering seamless and improved banking experiences. “In line with our continued commitment to providing you with seamless and enhanced banking experiences, we are pleased to inform you that all UBA Premium Naira Cards, including Gold, Platinum, and World variants are now enabled for international transactions,” the message read. “This means you can now use your Premium Naira Card for everyday payments, online shopping, POS, and ATM transactions across the world, with more ease and flexibility. If you haven’t used your card recently, now’s a great time to rediscover the convenience and prestige that comes with being a UBA premium cardholder.”

In its own statement, Wema Bank informed customers they could now “pay in dollars” using their naira cards. “Your Wema Naira Mastercard just went global! Now you can pay in dollars on all your favourite international platforms; Amazon, eBay, AliExpress? Netflix, Spotify, YouTube,” the bank noted.

In an email to customers, GTB explained that users can spend up to one thousand dollars every quarter with its naira card worldwide. “We are pleased to inform you that you now have a quarterly limit of $1,000 on your GTBank Naira Card to pay for all your favourite things anywhere in the world,” it said. “Withdrawals at ATMs Abroad: $500 quarterly. Online and POS Transactions: $1,000 quarterly. Kindly note that the quarterly limit of $1,000 covers all transactions including ATM cash withdrawals abroad, purchases on international websites, POS payments outside Nigeria, and more.”

WHY BANKS ARE MAKING THE SHIFT

Ayokunle Olubunmi, head of financial institutions ratings at Agusto & Co, explained that the improved liquidity in the foreign exchange (FX) market encouraged banks to restart global transactions with their naira cards. “The moderating premium on the parallel market transactions and the reduced arbitrage opportunities is also responsible for the decision,” he said.

Charles Sanni, chief executive officer of Cowry Treasurers, told TheCable that the smaller spread between the official and parallel market rates likely influenced the move. He added that interest rates are very high in Nigeria, which discourages borrowing to speculate on foreign exchange. “The naira has also continued to appreciate against the other major currencies of the world. More so, there has been increased diaspora remittances based on the new policy of the Central Bank of Nigeria (CBN) on opening of accounts for non-residents, particularly Nigerians in diaspora,” he explained.

Sanni also pointed to renewed confidence in FX management by the federal government and the CBN, noting improvements in fund transfers and capital repatriation. He mentioned that factors such as an improved credit rating for Nigeria, the clearance of FX backlogs, a “new trading platform, increase in oil prices from geopolitical conflicts, and banks capitalisation” also played a role.

Between July 2022 and January 2023, several other banks had also temporarily stopped international transactions on ATMs and POS channels. The pause was due to severe FX scarcity, which posed a risk to vital sectors of the economy.

In July, Standard Chartered Bank halted international transactions on its naira visa debit card. First Bank of Nigeria (FBN), on September 21, 2022, announced it would stop international transactions on its naira Mastercard. Three months later, Guaranty Trust Bank (GTBank) suspended global payments on its naira Mastercard, and Zenith Bank followed suit on January 9, 2023.

Flutterwave, Eversend, and other fintech platforms also suspended their virtual card services for international transactions.

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BIG STORY

BREAKING: Court Finds Natasha Guilty Of Contempt, Fines Her N5 million

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The Federal High Court in Abuja on Friday convicted the senator representing Kogi Central Senatorial District, Natasha Akpoti-Uduaghan, for contempt over a satirical apology she posted on her Facebook page on April 27.

Justice Binta Nyako, delivering judgment in the suit filed by Senator Akpoti-Uduaghan challenging her suspension, began with the contempt application submitted by the Senate President, Godswill Akpabio.

Akpabio, in his application, argued that the senator’s social media post breached an earlier court order that restrained all parties from speaking to the press or posting on social media about the matter.

Akpoti-Uduaghan’s counsel contended that the post was unrelated to the court’s order on her suspension but was about a separate matter involving sexual harassment claims against the third respondent (Akpabio).

However, Justice Nyako ruled that after reviewing the post and the application before her filed by the third respondent, she was convinced it was connected to the suspension case before the court and therefore declared the plaintiff guilty of contempt.

The judge directed Akpoti-Uduaghan to publish an apology in two national newspapers and on her Facebook page within seven days. She also imposed a fine of N5 million.

 

More to come…

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BIG STORY

BREAKING: Court Orders Senate To Recall Suspended Natasha Akpoti

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A Federal High Court sitting in Abuja on Friday ruled that the Nigerian Senate exceeded its powers by suspending Senator Natasha Akpoti-Uduaghan for six months, ordering her to be immediately recalled to the Red Chamber.

Justice Binta Nyako, delivering the judgment, described the suspension period as “excessive” and lacking a solid legal basis.

The court stated that both Chapter 8 of the Senate Standing Orders and Section 14 of the Legislative Houses (Powers and Privileges) Act, which the Senate relied on, do not specify a maximum suspension length. Therefore, their application in this situation was considered overreaching.

The judge noted that since the National Assembly is only mandated to sit for 181 days in a legislative year, suspending a lawmaker for about the same length of time effectively silences an entire constituency, calling it unconstitutional.

“While the Senate has the authority to discipline its members, such sanctions must not go so far as to deny constituents their right to representation,” Nyako ruled.

However, the court agreed with Senate President Godswill Akpabio on a different issue, ruling that his decision to prevent Akpoti-Uduaghan from speaking during a plenary—because she was not in her designated seat—did not violate her rights.

Nyako also dismissed Akpabio’s argument that the judiciary should not interfere in what he described as an “internal affair” of the legislature, saying fundamental rights and representation fall squarely within the court’s jurisdiction.

In a separate twist, the court imposed a monetary penalty on Akpoti-Uduaghan for violating an earlier court directive that barred both parties from making public comments about the ongoing legal proceedings.

The fine amounts to millions of naira.

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