Opinion
Dangote Refinery: Finally, a Solution Nigeria Can’t Import!
By Abiodun Alade
If there’s one burning question on the minds of Nigerians these days, it’s this: why are we paying between N1,000 and N1,500 for a litre of Premium Motor Spirit (PMS)?
Sadly, the very people who should be explaining this strange new reality have decided to stay tight-lipped with heads buried in the sand like ostriches. Meanwhile, those who have been milking the country’s oil wealth while keeping its four refineries comatose – have been busy peddling a lot of dubious narratives to discredit Dangote Petroleum Refinery. Apparently, some people would rather pull the wool over our eyes than let us see the real picture.
Let’s get one thing straight: the Dangote Refinery is not to blame for the price of PMS in Nigeria. In fact, without this refinery, we might be staring at petrol prices as high as N2,500 a litre – just like the recent strident gloomy predictions from oil marketers and analysts.
The real culprits in this price mess are the oil cabals and their cosy friends at the Nigerian National Petroleum Corporation Limited (NNPCL). These folks are busy trying to spin the tale that locally refined products are somehow more expensive than imported fuel, which, in their view, justifies the ongoing need to import fuel and keep those highly subsidised prices intact. Let’s pause for a moment and ask: since when did importing fuel become a better deal than refining it locally? That’s like paying extra for a loaf of bread because someone else baked it in their oven… miles away.
As with all global refineries, the Dangote Petroleum Refinery doesn’t set pump prices for petroleum products. Those decisions, much to the chagrin of the refinery’s critics, are based on market dynamics, government policies, and, the influence of some very powerful individuals. The real reason for the recent hike in petrol prices is a simple equation: subsidy removal plus the floating of the Naira.
As recently as August, reports showed that the NNPCL was selling petrol at half the actual cost of imported fuel. Officially, the pump price was N568 per litre, but the true landing cost was a shocking N1,100 per litre. So, the NNPC was generously “subsidising” fuel imports by almost N600 per litre – subsidising, that is, until the entire scheme became too expensive to sustain. So, naturally, prices were hiked to N855 per litre.
And here’s the kicker: the Federal Government racked up an eye-watering N5.1 trillion in under-recovery and energy security expenses on fuel imports in 2023. Guess where that money came from? The same pockets that should have been filled with healthcare, education, and infrastructure funds. Instead, we were left with an empty wallet and a bill that was too big to ignore.
Meanwhile, on the other side of the world, Guyana – the third-smallest sovereign state in the world, is generously handing out $100,000 cash grants to its adult citizens as part of its oil boom, while Nigeria – the most populous black nation on Earth – is amassing foreign debt to pay for fuel subsidies.
If the pricing template used to offset imported petrol costs was applied to products from Dangote Refinery, the price of petrol could be much lower than what we’re seeing today – possibly as low as N500 per litre. That’s right, N500. But of course, the government, apparently has decided not to restore the subsidies. After all, what was once intended as relief for the people has now turned into a siphoning operation.
According to a report by The Guardian Newspapers in October, oil marketers are making an extra 48% profit by smuggling petrol out of Nigeria to neighbouring countries, where the price is far higher. In Mali, the price is N2,266 per litre, in Cote d’Ivoire it’s N2,289, in Cameroon N2,196, and in Benin Republic N1,779. No surprises there, then, that daily PMS consumption in Nigeria keeps rising. And if the oil cabals get their way, we’ll be looking at a whopping 103 million litres per day – just like we saw in 2022.
The government is, understandably, trying to keep local prices aligned with those in neighbouring countries to curb smuggling. But honestly, until the greedy cabals are shown the red card and we finally declare that “business as usual” is over, the government strategy is dead on arrival.
While President Bola Ahmed Tinubu’s Naira-for-Crude initiative is certainly a step in the right direction, the floating of the Naira is still keeping petrol prices stubbornly high. Why? Crude oil is priced in dollars, so domestic refiners, including the Dangote Refinery, are still paying the exact dollar amount for crude, but now in Naira. And when you convert dollar to Naira, it’s expensive. For instance, a mere $90 per barrel now translates to over N150,000.
Currently, a litre of Nigerian crude costs between N890 and N910, before factoring in refining and logistics costs. So, what’s the magic number? How much can a refinery – domestic or foreign – realistically sell a litre of refined petrol for? That’s the million-naira question!
With the Naira-for-Crude policy, the expectation is that the Naira will stabilise over time. If that happens, petrol prices should eventually fall. Imagine, if the Naira strengthens to N1,000 to the dollar – the price of petrol could drop significantly. That’s what every genuine, patriotic Nigerian should be rooting for – not chasing after mythical dollars that only serve to put more pressure on the Naira.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, proudly stated that the government would earn about N700 billion monthly from the sale of crude in Naira and from the subsidy removal policies, compared to the $600 million it was previously spending on fuel imports. So, let’s do the math: one option helps the people, the other helps the oil cartels. No prizes for guessing which one benefits Nigeria in the long run.
Of course, the oil cabals won’t see the benefits because it will take away their free access to wealth, allowing them to continue living their best lives. Isn’t it funny that these same marketers who have been crying about petrol prices because of a lack of local refining capacity are now saying it’s cheaper to import fuel than to refine it here? Where were they when the government was doling out trillions for the turnaround maintenance of refineries? Suddenly, the landing cost of imports, which was as high as N1,400 per litre, has magically dropped to under N1,000. How convenient!
It’s clear that the cartels have been blending off-spec fuel while collecting subsidies for “premium” products. Or perhaps they’ve been stealing crude and blending it abroad – after all, crude theft in Nigeria is a well-known business, especially when it’s done using large vessels under the radar.
Already, Nigerians are seeing the benefits of the Dangote Petroleum Refinery in reducing the prices of other petroleum products like diesel and aviation fuel by over 45% and 35% respectively. Naturally, this earned Dangote a fair bit of flak from the oil cabals, who promptly wrote to President Tinubu, complaining that this “patriotic man” was ruining their business by alleviating the suffering of the people. Whoever knew that doing something good for the public could be so controversial?
Nevertheless, we’re confident that a similar reduction in PMS prices will follow once local refining capacity is fully embraced and stakeholders start putting Nigeria’s interests ahead of their own pockets. After all, if it works for diesel and aviation fuel, surely it’s not too much to ask that petrol prices follow suit – unless, of course, the oil cartels have a different agenda.
The Dangote Petroleum Refinery has chosen to rise above the noise, urging all stakeholders to put the nation’s progress and the welfare of its people above personal gains. Unfortunately, some prefer to keep spreading falsehoods about a private investment that is designed to propel Nigeria towards economic self-sufficiency.
For those still sceptical, I’ll say this: the Aliko Dangote I know is not the type to bow to propaganda, hate, or lies – especially when it’s all in defence of Nigeria’s national interest and the development of Africa.
Abiodun writes from Lagos
Opinion
Political crisis: I weep for Kano, Northern Nigeria
Ruqayyah Hamidu Muhammad PhD
The behind the scenes battle between the two prominent political figures of Kano state is affecting the political progress of the state and the entire northern region. The ongoing conflict in Kano State is more than a local issue; it is a matter of significant concern for the political progress and unity of the entire northern region of Nigeria. This rivalry has deep implications for governance, development, and regional solidarity. I am deeply shocked that we still have millions of sane individuals that support and encourage such attitude, let me open your eyes to the consequences of this battle, perhaps you see things differently and unite against it;
1. Undermining Governance in Kano State
Kano State, as a political and economic hub in Northern Nigeria, plays a pivotal role in the region’s progress. A divided leadership in Kano has severe consequences:
Distracted Leadership: Instead of focusing on policies and programs that benefit the people, resources and energy are being diverted toward political squabbles.
Delayed Development: Political instability creates a vacuum in decision-making, stalling critical infrastructure projects, economic initiatives, and social welfare programs.
Administrative Paralysis: Rivalries often lead to factionalism within government institutions, causing inefficiency and lack of coordination in service delivery.
2. Weakening Northern Political Unity
The northern region has traditionally relied on unity and consensus-building to maintain political influence in Nigeria. This rivalry is fracturing that cohesion and creating vacuums.
Factions and Divisions: The clash between the prominent political leaders polarizes supporters within Kano and across the north, creating camps that weaken the collective bargaining power of the region.
Loss of Regional Focus: Instead of collaborating to tackle shared issues such as insecurity, poverty, and youth unemployment, almajiranci, street begging, leaders are consumed by intra-party or inter-party conflicts.
3. Negative Perception of Northern Politics
These conflicts project a negative image of northern politics at the national and even international levels.
Leadership Crisis: Persistent fighting portrays northern leadership as disorganized and more interested in personal power than public welfare.
Reduced Influence: National political stakeholders may view the north as politically unstable, leading to reduced confidence in the region’s ability to present a united front.
Public Disillusionment: Ordinary citizens may lose faith in the political process, seeing it as a game of ego and personal ambition rather than a means to address societal challenges or issues
4. Impact on the Region’s Developmental Agenda
Kano’s position as a leader in commerce, culture, and population means its political health directly affects the broader northern region.
Economic Repercussions: Political unrest in Kano disrupts trade, investment, and business activities, which are critical for the northern economy.
Policy Inconsistency: Frequent political changes or standoffs can lead to abrupt shifts in policies, discouraging long-term development initiatives resulting in huge economics loses.
Stalled Regional Projects: Projects that require regional collaboration such as those in agriculture, education, and transportation may be delayed or abandoned due to lack of coordination.
5. Insecurity and Social Fragmentation
Political instability often exacerbates existing challenges, including insecurity:
Rise in Violence: Political feuds can trigger violent clashes between supporters, leading to loss of lives and property, further destabilizing the region.
Exploitation by Insurgents: Groups like Boko Haram and bandits exploit political disunity and weak governance to expand their influence in the region.
Ethno-Religious Tensions: The conflict may deepen existing ethno-religious divides, as politicians use identity-based rhetoric to mobilize support, leading to long-term social fragmentation.
6. Erosion of Political Ideals
One of the most damaging effects of this rivalry is the erosion of political ideals in the north:
Focus on Personal Agendas: The rivalry overshadows ideological debates and policy-driven leadership, reducing politics to a contest of personalities.
Youth Disenchantment: Young people in the north may become disillusioned with politics, seeing it as a tool for personal enrichment rather than societal progress.
Diminished Legacy: The contributions of Kano’s historical political leaders, who prioritized unity and development, are undermined by the current discord.
7. Spillover Effects Across the Northern Region
The instability in Kano has a ripple effect on the entire northern region’s politics and progress:
Divisive Influence: The rivalry may spill over into other states, encouraging similar conflicts among leaders who are aligned with either of the two factions.
Weakening of Political Alliances: Regional political blocs, such as those formed during elections, may lose their effectiveness due to infighting and loss of trust.
National Implications: The north’s reduced influence on the national stage could lead to diminished representation and marginalization in key decision-making processes.
Recommendations for Resolving the Conflict
To address the negative impacts of these conflicts and restore political progress, we need to come together as a people and implement the following;
Respected northern elders and traditional rulers (if we have any) should be encourage to come forward and mediate between these figures, emphasizing the importance of unity for the progress of Kano and the entire region. There is also need for civil societies members and the electorates to hold the leaders accountable, demanding and encouraging a focus on governance, collaboration on non-partisan issues such as insecurity, poverty alleviation, and youth empowerment rather than personal feuds. It is also high time that His excellency Governor Abba Kabir Yusuf activates the activities of the established council of elders, to promote dialogue and collective decision-making, which will eventually radiate within the entire northern region for a transformative Journey.
In conclusion, we need to shine our eyes and know that the rivalry between the prominent figures in Kano is more than a localized political battle. It is a threat to the northern region’s unity, development, and influence. Resolving this conflict should be given optimum and immediate priority and sustained efforts from stakeholders at all levels to refocus leadership on governance, regional collaboration, and addressing the pressing needs of the population than personal gain and ego.
Finally Allah says: “And hold firmly to the rope of Allah all together and do not become divided.. (Surah Al-Imran 3:103).
Ruqayyah Hamidu Muhammad PhD
Executive Director NASSDEV
Email: info@nassdev.ng
Tel: +234(0)8032014161
Opinion
The Rich Tapestry of Northern Nigeria
Saleh Adamu Kwaru, CNA, FCCSA (USA)
In the face of our challenges, we must recognize the immense potential that lies within the Northern Nigeria. A region brimming with untapped potentials is more than just a geographical expanse. It is a treasure trove of natural resources, a fertile ground for innovation, and a home to a vibrant and resourceful people.
From the vast agricultural lands of the Middle Belt to the mineral-rich deposits of the North-East, and the abundant natural resources of the North-West, our region possesses the essential raw materials needed to drive economic growth and prosperity. These diverse resources provide a strong foundation for various industries, offering opportunities for development and investment that can significantly enhance the region’s economic landscape.
A Shared Vision for the Future
Imagine a Northern Nigeria where every child, regardless of their background or location, has access to quality education. Where classrooms are equipped with modern learning tools, skilled teachers inspire young minds, and a strong emphasis is placed on STEM subjects to prepare our youth for the future. Picture a region where technology revolutionizes agriculture. Where farmers utilize innovative techniques such as precision farming and drone technology to increase yields, conserve water, and reduce reliance on harmful chemicals.
Imagine a region where agro-processing industries flourish, creating jobs and adding value to our agricultural products. Envision a Northern Nigeria where our abundant natural resources are managed sustainably for the benefit of present and future generations. Where renewable energy sources, such as solar and wind power, are harnessed to meet our energy needs. Where forests are protected, water resources are conserved, and biodiversity is preserved.
Mobilizing Our Strengths
We must harness the immense potential of our region by capitalizing on our greatest assets: our fertile land, our industrious people, and our rich cultural heritage. Through investing heavily in education, we can empower our youth to become the leaders, innovators, and entrepreneurs of tomorrow. Quality education will equip them with the knowledge and skills needed to drive economic growth and social progress.
For the region to attain sustainable development and equitable distribution of resources, we must foster a culture of integrity and accountability in leadership. Transparent governance, effective public service delivery, and the eradication of corruption are essential for building a prosperous and just society. Indeed, when we prioritize good governance, we can create an environment that attracts investment, encourages innovation, and empowers our people.
This transformation cannot happen in isolation. It requires the active participation of all stakeholders— the government, the private sector, civil society organizations, and the communities themselves. The government, through sound policies and effective implementation, can provide the necessary framework for economic growth and social progress. With investment huge in infrastructure, education, and healthcare, the government can create the conditions for businesses to thrive and individuals to prosper.
The private sector, with its resources and expertise, can drive economic growth and create jobs. Scale up investment in local businesses, promoting entrepreneurship, and adopting sustainable practices, the private sector can contribute to the overall development of the region. The civil society organizations play a crucial role in advocating for social justice, environmental protection, and good governance. In the course of community mobilization, awareness campaigns, and advocacy, civil society can help ensure that the benefits of development reach the grassroots level, improving the lives of all.
Our rich cultural heritage is a profound source of strength and identity, reflecting the vibrant history and diverse traditions of Northern Nigeria. Through promoting tourism and cultural exchange, we can showcase the beauty, diversity and uniqueness of our region with the world. This not only spurs economic growth but also fosters pride in our communities and encourages the preservation of our traditions and community empowerment.
Northern Nigeria’s potential is not confined within its borders; it reaches far beyond, promising substantial growth and development. Through fostering collaboration with neighboring regions and countries, we can build a strong and interconnected trade network that enhances economic opportunities. Regional partnerships can facilitate knowledge sharing, resource pooling, and collective problem-solving, leading to greater prosperity as well as pave the way for a mutually beneficial exchange of goods, services, and expertise.
A Clarion Call to Action
The time has come for us to unite and take decisive action to transform our fortunes. Let us advocate for policies that recognize and integrate the abundant resources of our region, fostering a shared vision for Northern Nigeria’s growth. Moreover, let us invest in our youth, equipping them with the necessary tools and opportunities to succeed. Their potential is immense, and nurturing it will drive the region’s future progress.
The future of Northern Nigeria is undeniably bright, but it is our collective responsibility to turn that potential into reality and to hold our leaders accountable, demanding transparency and integrity in governance to ensure our collective prosperity. Together, we can build a prosperous and sustainable future for all.
Saleh Adamu Kwaru, CNA, FCCSA (USA) is a retired CBN staff.
Opinion
The Menace of Begging and Misuse of Public Trust: A Call for Dignity in Kano State
Ruqayyah Hamidu Muhammad PhD
Begging (also known as panhandling) is the practice of imploring others to grant a favor, often a gift of money, with little or no expectation of reciprocation. A person doing such is called a beggar or panhandler. Beggars may operate in public places such as transport routes, urban parks, and markets. Some beggars adopt a persistent approach, approaching motorists in traffic, and creating nuisance along major highways. How ever begging, no doubt, is a downgraded act which leads to the image tarnishing as well as loss of prestige and dignity of any person engaging in it.
Islam prohibits begging as a profession, and considers it to be lazy work that goes against the strength that Allah gives. The Prophet Muhammad advised people to try to earn a living through lawful and good means, encouraging self-reliance and hard work. The only condition for one to beg is when he is extremely poor and in dire need, then such an individual can approach others for assistance and once his need is met, he goes back to his normal business. Islam frowns at taking begging as a means of livelihood.
Although contributing factor to this issue is the economic downturn, resulting in the closure of industries and factories, fuel subsidy removal, different acts of terrorism, leaving many without alternative means of livelihood. While discouraging begging, Islam also stresses the responsibility of those with resources to provide charity (zakat and sadaqah) to alleviate poverty and prevent people from resorting to begging.
The issue of begging, especially in places like Kano, where cultural and religious values encourage generosity, reflects a troubling misuse of kindness and a lack of systemic solutions to poverty. While the Islamic principles of charity (zakat and sadaqah) aim to create a safety net for the needy, the exploitation of this benevolence has led to social and urban challenges.
I want to commend and encourage the Kano State Government for its efforts to address the issue of begging, as it reflects a thoughtful recognition of the need to tackle this societal challenge. Taking decisive action against the menace of begging is crucial, not only to restore the dignity of individuals (who risk losing their sense of self-worth) but also to enhance the social and urban fabric of Kano.
The issue of paramilitary organizations like KAROTA (Kano Road and Traffic Agency), Federal Road safety Corps (FRSC) officials, and other related entities soliciting bribes or “begging” from motorists on Kano streets is indeed troubling. This practice undermines public trust in these institutions, compromises their integrity, and creates an atmosphere of lawlessness and embarrassment for both the authorities and the public.
To rebuild trust and professionalism, the government must make accountability and ethical behavior non-negotiable priorities. Ensuring that institutions like KAROTA and road safety agencies operate with transparency and respect for the public will not only enhance their effectiveness but also restore the dignity of both the enforcers and the citizens they serve.
The issues of begging and the misuse of public trust in Kano are deeply intertwined with broader societal and institutional challenges. While poverty and economic downturns have pushed many into desperation, the exploitation of kindness and corruption among enforcement agencies exacerbate these problems. Addressing these challenges requires a multi-faceted approach that combines compassion, accountability, and systemic reforms.
The Kano State Government’s efforts to tackle begging are commendable, and they should be bolstered with robust policies that empower individuals to seek dignified livelihoods. Similarly, eradicating unethical practices within paramilitary and traffic enforcement agencies must be a top priority to restore public trust and professionalism.
By fostering an environment of dignity, transparency, and responsibility, Kano can pave the way for a more equitable and harmonious society where charity serves its true purpose, laws are upheld with integrity, and every individual is encouraged to contribute positively to the community. Let this be a collective commitment to reclaim the soul and pride of Kano for the benefit of all.
Ruqayyah Hamidu Muhammad PhD, is the Executive Director Network for Awareness for Socio-economic Rights and Sustainable Development (NASSDEV).