News
Dangote refinery insists international oil companies are frustrating its crude supply demands
Nasiru Yusuf Ibrahim
The Management of Dangote Industries Limited (DIL) has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its various interventions in the oil company’s crude supply requests from International Oil Companies (IOCs), and for publishing the Domestic Crude Supply Obligation (DCSO) guidelines to enshrine transparency in the oil industry.
KANO FOCUS reports that the Vice President, of Oil & Gas, Dangote Industries Limited, Mr. DVG Edwin however said: “If the Domestic Crude Supply Obligation (DCSO) guidelines are diligently implemented, this will ensure that we deal directly with the companies producing the crude oil in Nigeria as stipulated by the PIA.”
Edwin insisted that IOCs operating in Nigeria have consistently frustrated the company’s requests for locally produced crude as feedstock for its refining process.
He highlighted that when cargoes are offered to the oil company by the trading arms, it is sometimes at a $2-$4 (per barrel) premium above the official price set by NUPRC. “As an example, we paid $96.23 per barrel for a cargo of Bonga crude grade in April (excluding transport). The price consisted of $90.15 dated Brent price + $5.08 NNPC premium (NSP) + $1 trader premium. In the same month, we were able to buy WTI at a dated Brent price of $90.15 + $0.93 trader premium including transport. When NNPC subsequently lowered its premium based on market feedback that it was too high, some traders then started asking us for a premium of up to $4m over and above the NSP for a cargo of Bonny Light”
“Data on platforms like Platts and Argus shows that the price offered to us is way higher than the market prices tracked by these platforms. We recently had to escalate this to NUPRC”, Edwin said and urged the regulatory commission to take a second look at the issue of pricing.
Edwin’s response came against the background of a statement by the Chief Executive Officer of NUPRC, Engr. Gbenga Komolafe, in an interview on ARISE News TV said that “it is ‘erroneous’ for one to say that the International Oil Companies (IOCs) are refusing to make crude oil available to domestic refiners, as the Petroleum Industry Act (PIA) has a stipulation that calls for a willing buyer-willing seller relationship.”
Edwin noted that “The NUPRC has been very supportive to the Dangote Refinery as they have intervened several times to help us secure crude supply. However, the NUPRC Chief Executive was probably misquoted by some people hence his statement that IOCs did not refuse to sell to us. To set the records straight, we would like to recap the facts below.
“Aside from Nigerian National Petroleum Corporation Limited (NNPCL), to date, we have only purchased crude directly from one other local producer (Sapetro). All other producers refer us to their international trading arms.
“These international trading arms are non-value adding middlemen who sit abroad and earn margin from crude being produced and consumed in Nigeria. They are not bound by Nigerian laws and do not pay tax in Nigeria on the unjustifiable margin they earn.
“The trading arm of one of the IOCs refused to sell to us directly and asked us to find a middleman who would buy from them and then sell to us at a margin. We dialogued with them for 9 months and in the end, we had to escalate to NUPRC who helped resolve the situation,” Edwin stated.
According to him, “When we entered the market to purchase our crude requirement for August, the international trading arms told us that they had entered their Nigerian cargoes into a Pertamina (the Indonesia National Oil Company) tender, and we had to wait for the tender to conclude to see what is still available.
“This is not the first time. In many cases, particular crude grades we wish to buy are sold to Indian or other Asian refiners even before the cargoes are formally allocated in the curtailment meeting chaired by NUPRC.
“However, we would like to urge NUPRC to take a second look at the issue of pricing. NUPRC has severally asserted that transactions should be on a willing seller / willing buyer basis. The challenge however is that market liquidity (many sellers / many buyers in the market at the same time) is a precondition for this. Where a refinery needs a particular crude grade loading at a particular time then there is typically only one participant on either side of the market.
“It is to avoid the problem of price gouging in an illiquid market that the domestic gas supply obligation specifies volume obligation per producer and a formula for transparently determining pricing. The fact that the domestic crude supply obligation as defined in the PIA has gaps is no reason for wisdom not to prevail”, Edwin stated.
Aminu Abdullahi
The adolescent girls initiative for learning and empowerment AGILE has been described as a major catalyst to educational development.
KANO FOCUS reports that the Emir of Rano, Alhaji Muhammad Isa Umaru, made the indication while receiving AGILE team in his palace.
According to him, Kano has witnessed significant progress in girl child education facilitated by AGILE, hence the need for traditional institutions and relevant stakeholders to contribute their quota to achieve the desired objectives.
He noted that, Rano Emirate has been at the forefront of ensuring enrollment retention and completion of girls education through various initiatives.
The emir called on the Adolescent Girls Initiative for Learning and Empowerment (AGILE) to upgrade the girls school in his community.
The monarch said, the school, located beside the palace, requires expansion to accommodate a larger number of students.
The traditional ruler suggested that AGILE should visit the school to assess its condition, saying that, relocating the school to a bigger location had been earlier considered.
In his remarks the permanent secretary Kano state ministry of education Alhaji Bashir Baffa explained that, they were at the palace to seek for support and blessings form the royal father.
He said, AGILE has fostered an enabling environment for girls through promoting behavioral changes through communication campaigns engagement with traditional rulers and advocacy.
He maintained that, the team has embarked on advocacy visits to all relevant stakeholders at community and state levels on the importance of girls education.
Alhaji Baffa hinted that the state government had declared a state of emergency on education, hence the need for the traditional institution to contribute its quota to achieve the desired objectives.
He posited that, the team will visit the school to see possible ways of intervening for the development of education.
The permanent secretary also used the opportunity to condole Rano emirate over the killing of its indigenes in Uromi.
KANO FOCUS reports that, earlier the team has paid a similar visit to Karaye Emirate council as part of efforts to advocate for support from the traditional institution and relevant stakeholders.
Aminu Abdullahi Ibrahim
The Kano State Ministry of Education’s Adolescent Girls Initiative for Learning and Empowerment (AGILE) Project, supported by the World Bank, has successfully renovated over 1,300 senior and junior secondary schools in the state in the last three years.
KANO FOCUS reports that the state commissioner for education, Alhaji Ali Haruna Makoda, disclosed this during a visit to the Karaye Emirate on Tuesday.
He added that the AGILE program has enrolled more than 30,000 girls through targeted outreach, grants, and its Second Chance education initiative.
Makoda further revealed that the state government has finalized plan to construct 130 new schools in rural communities, with over 35,000 girls already benefiting from financial assistance under the scheme.
He urged the Karaye Emirate to lend full support to the program and prioritize girls’ education.
In his remarks, the Emir of Karaye, Alhaji Muhammad Maharaz, pledged the emirate’s commitment to advancing girls’ education in Kano State.
He commended the state government and the commissioner for their dedication to the programme’s success.
“It is our collective responsibility to support this initiative,” the Emir stated, calling for measures to ensure beneficiaries complete their education with strong academic outcomes.
The commissioner’s delegation consist of the Kano State AGILE Project Coordinator, Malam Mujitapha Aminu and other members of State Programme Implementation Unit (SPIU).
Aminu Abdullahi Ibrahim
Bayero University Kano (BUK) on Monday celebrated the 50th anniversary of its Faculty of Education and inaugurated its Alumni Association at the Convocation Arena of the university’s new campus.
KANO FOCUS reports that the event was graced by government officials, education stakeholders, and alumni all gathered to commemorate the faculty’s contributions to Nigeria’s educational sector.
In her keynote address, the State Minister for Education, Mrs. Suwaiba Sa’id Ahmad announced the Federal Government’s Sector Renewal Initiative designed to transition Nigeria from a resource-based to a knowledge-based economy.
She highlighted that the aim of the renewal initiative consists of – Reducing the number of out-of-school children; combating learning poverty; nhancing skills development and human capital for the labor market
The minister noted that the initiative prioritizes Technical and Vocational Education and Training (TVET); Science, Technology, Engineering, and Mathematics (STEM); Digital literacy and education quality assurance.
Mrs. Ahmad disclosed that the Federal Government had disbursed ₦35 billion to 261 beneficiaries under the Nigerian Education Loan Fund (NELFUND), with BUK among the top beneficiaries.
“So far, the scheme has received 420 applications, and we are scaling up investments,” she stated.
She further confirmed that President Bola Ahmed Tinubu approved ₦120 billion to boost TVET programs, with plans to train 650 youths in technical, vocational, and digital skills over the next two years.
Emeritus Professor Sani Ahmad Sufi, former Permanent Secretary of the Ministry of Education, praised the faculty for its high-quality graduates.
“Our pride lies not just in the number of graduates produced yearly, but in their impact across Nigeria and beyond,” he said.
He added that the faculty has produced Nigeria’s largest pool of graduate teachers many of whom hold key positions nationally and internationally.
The National Chairman of the All Progressives Congress (APC), Dr. Abdullahi Umar Ganduje applauded the faculty for its significant role in advancing education in Nigeria.
The event concluded with awards presented to distinguished alumni and supporters of the faculty in recognition of their contributions to its growth.
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