•Says over 500m litres waiting for buyers
By Egena Sunday Ode
President of Dangote Group, Alhaji Aliko Dangote, has advised petroleum marketers to stop importation of petrol as his subsidiary, Dangote Refinery, has enough stock to satisfy local demand.
He said Dangote Refinery presently has over 500 million litres of petrol stocked in its tanks awaiting evacuation by buyers.
He said the stock, given the rate of current local fuel consumption, can last the country 12 days even with zero importation.
The business mogul spoke at the Aso Rock Presidential Villa, Abuja on Tuesday after a meeting of the implementation Committee On Sale Of Crude and Petrol in Naira with President Bola Tinubu.
He said: “Yes, with enough supply of crude, we can actually produce much more than 30 million liters every day. At full capacity, we can even supply whatever is being consumed. But what I estimated as consumption, which I believe may be about 30, 32 million that one we can even start producing that by next week, so it is not really an issue, because, as we speak today, we have 500 million liters in our tanks.
“So 500 million liters in our tanks even if there’s no production or no imports, this will take the country more than 12 days, with no imports, with no production, nothing. So we are very ready. We are more than ready.
“And you know, I’m also putting my own name online by giving Mr President my word that, yes, we will be able to supply the market minimum 30 million per day, and we’ll be ramping up. So we’re ready. We’re more than ready.”
On why petrol scarcity has persisted in the country despite his boast of huge product stock, the Richest Man in Africa said his company is not involved in retailing and can, therefore, not do much to help in that regard, urging that retailers should come forward and buy off the available product rather than resort to importation.
He also expressed his company’s capacity and readiness to continue to satisfy local demand for fuel as long as the NNPC fulfills it obligation of selling crude to them.
“Well, one thing that you have to understand is that we are producers. I have a refinery. I’m not in the business of retail. If I’m in the business of retail then you hold me responsible. But what I’m saying is that, the retailers should please come forward and pick.
“If they don’t, come forward and pick, what do you want me to do? So, I am expecting either NNPC or the marketers to stop importing, they should come and pick because we have what they need. And you know, as they removed, I will be pumping. I don’t know whether you understand what it takes to keep half a billion liters inside our tank. It’s costing me money every day.
“If I will be able to collect the naira, I can actually charge somebody 32% in interest. So right now, that’s what I’m losing. And you are talking about 500 million, I mean, we don’t print money. But the issue is that if they come and collect, then you will not see any queues in the filling stations.
“We have what it takes for them to come and collect. We are not retailers. We also don’t have trucks to send. We have a factory, we have where they can load. If they come and pick they will go and sell and they have been doing that with importation. So if they’ve been doing that with importation, if it’s true, they are doing 55 million, I see no reason why they won’t come and collect our own and distribute.”
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had said earlier that the meeting with President Bola Tinubu was to review the crude for naira policy to the Dangote Refinery.
According to him, “We have today (yesterday), had a session with His Excellency Mr. President, to review the implementation of his bold initiative, endorsed fully by the Federal Executive Council, of selling crude to local refiners, who then sell their product in naira to the Nigerian public.
“This initiative which was initiated by Mr. President, is made possible also by the courageous and bold investment, also of the Dangote group, in a local refinery of 650,000 barrels per day refining capacity.
“Today, the implementation committee and the sub committee have worked assiduously with all stakeholders, the regulators, NNDPRA, NUPRC, NIMASA, NNPC, NPA the Navy and a host of other stakeholders to ensure that this important initiative is implemented, and it is being implemented as we speak.
“And what made it most possible is that now we have market pricing of petroleum products. And relatedly, we have market pricing of foreign exchange that has set the economy on the path to industrialization, because with private sector refining of crude oil, we now have raw materials, not just for agriculture, but for industry, for chemicals, for paints, for building materials for textiles.
“And of course, this is Mr. President’s strategy and his policy of making conditions right for the private sector to invest, create jobs and grow the economy.
“Likewise, the market pricing of petroleum products, has also paved the way for NNPC to restore its balance sheet, restore its financial fortunes, and of course, to give the federation, federal state and local governments more funding in order to allow them to meet their obligations, salary payments to workers, social services to the population generally, and of course, key infrastructure development.”
He added: “The economy has been set well and truly on a path, although it’s early steps, and there is much to be done, but we can now see a clear path to industrial development for modernization of the Nigerian economy, because the key prices are right, and it is encouraging private sector investment.
“On that note, I believe that what happened in the meeting was that all are committed to ensuring that this all-important effort is sustained, and that whatever the teething problems, whatever the initial obstacles to successful implementation of local sale in naira of crude petroleum to domestic refiners and the correlating sale of petroleum products in baira is fully achieved.
“There’s the determination which starts right from the very top from Mr. President downwards. There’s a commitment to make this work. We had AFREXIM Bank as part of the meeting, and AFREXIM Bank is one of the financial institutions that will assist and actually be an intermediary to ensure that the parties, the seller of the crude, the buyer of the crude, are able to complete their transactions, no matter the fact that the foreign exchange market is volatile and moves all the time.”
Dangote described the meeting with the President as a good one.
He said, “You heard what the Chairman of the Committee on naira for crude on Petroleum product actually, just said, based on our meeting, and I think we’ve had a very, very good meeting where now, we will use a market determined exchange rate and also the crude price.
“With that, Mr. President also directed that, NNPC will buy, marketers will also buy. They will be buying just like any other, that is NNPC retail at the end of the day. We have also AFREXIM Bank , which I think they are now going to be the in- go in between.
“They will now make sure that they’re going to be like the settlement bank between Dangote, other refiners, and NNPC, in terms of crude, and then in terms of the selling of the products, this thing will actually revive also a lot of industries. Industries that are in plastic, industries in cooking gas, which is LPG, industries like aviation, so also industries that will buy gas, oil, not only petroleum. I mean, PMS.
“So, all this, the President asked and I said that the consumption is not going to be that much. I believe, with this increase of price, we, as we are ramping up because it’s a brand new refinery. So obviously you are now at about 420,000 barrels per day, we still have one ……. to go.
“Once we get there, we have enough naira crude, we’ll be able to fully satisfy the market. But when NNPC refineries work going, then Nigeria will be actually one of the biggest in exporter of Petroleum products in history. So today, as we speak, the meeting went extremely, very well, and Mr. President has also said that he will support domestic industries.
“And by supporting domestic industries, he is not going to allow our refineries not work. So our refineries will work. And also, it will be a win, win situation. We will attract more investment into the country. So, with this I can tell you that yes, the meeting went extremely very well.”
