Dangote wants only refinery licence holders to import fuel

Dangote Group has suggested for inclusion in the Petroleum Industry Bill a provision that the licence to import petroleum products should be assigned only to companies with active refining licences.

The company, which is building a 650,000-barrels-per-day refinery in Lagos, said this would encourage investment in local refining.

The Chief Strategy Officer, Dangote Group, Aliyu Suleiman, in a presentation during a visit by members of the National Assembly’s Joint committee on PIB to the project site, highlighted several recommendations by the company.

He said, “Nigeria is exceptional in being a major oil producer with near zero refining capacity.

“Though the Dangote Refinery will help address this, there could be periods when petroleum products may need to be imported, such as when the refinery is undergoing turnaround maintenance or if demand grows to exceed capacity.”

The company recommended that the backward integration policy should be applied in the downstream petroleum sector to encourage investment in local refining.

“To support this, licence to import any product shortfalls should be assigned only to companies with active refining licences. Import volume to be allocated between participants based on their respective production in the preceding quarter. Such import will be done under the DSDP scheme,” he said.

According to Dangote Group, fuel imports into Nigeria are of very low quality, and this has harmful effect on health.
“It also impacts performance and durability of vehicles, especially high performance cars. ECOWAS members (including Nigeria) signed a declaration in February 2020 to adopt cleaner fuels,” it said.

The company suggested that to safeguard the health of Nigerians, imported petroleum products must conform to the Afri-5 specification (50 ppm sulphur) in line with the ECOWAS declaration of February 2020 on adoption of the Afri-Fuels Roadmap.

The company described the provision in the PIB for third-party access to pipelines as a source of concern

“Section 113(3) mandates the regulator to ensure third party access to facilities and pipelines for midstream and downstream petroleum operations. It is not clear how this would work but it means that a third party could potentially request to use any excess capacity at the refinery, fertiliser or trading facilities,” it said.

The company recommended that if this must be retained, the provision should be for tariffs to be on a willing-buyer, willing-seller basis, adding, “Bill currently attempts to provide a formula for calculating this.”

https://punchng.com/dangote-wants-only-refinery-licence-holders-to-import-fuel/


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Loading: The Federal Republic of Dangote

Trying to put up his monopolistic agenda in motion in petrochemical sector too. But note this, before the North will use you to indirectly front their economy diversionary to the North; the South would have by far become a separate country where there will be equity, Justice and peace.

Rugaria:
Loading: The Federal Republic of Dangote

It's so annoying. And that people don't see the potential danger one few hands managing the economy of multi millions is what's even more worrisome. They will call it hate

Why can't we have free commodities and products markets for goodness sakes

Fixey:



It's so annoying. And that people don't see the potential danger one few hands managing the economy of multi millions is what's even more worrisome. They will call it hate

Why can't we have free commodities and products markets for goodness sakes

It's very obvious, but when you complain about this man's uncanny brand of vicious monopoly/capitalism, folks make it look like you are just hating..
From flour, to grains and cement, he has managed to sponsor presidents who helped him push off his competitors. He will then monopolize the sector, fix prices as he feels and disappear into one of his mansions while ordinary people suffer.. Cement prices in Nigeria are higher than that of other countries where Dangote has cement plants! Yet he has licences for limestone here in Nigeria! The man is a daredevil capitalist who believes strongly in manipulatig the system to squeeze the last breadth out of the poor masses.. To think that he is even being used as the top example of successful entrepreneurs, that the young in this country should look up to is simply mind boggling..

Rugaria:


It's very obvious, but when you complain about this man's uncanny brand of vicious monopoly/capitalism, folks make it look like you are just hating..
From flour, to grains and cement, he has managed to sponsor presidents who helped him push off his competitors. He will then monopolize the sector, fix prices as he feels and disappear into one of his mansions while ordinary people suffer.. Cement prices in Nigeria are higher than that of other countries where Dangote has cement plants! Yet he has licences for limestone here in Nigeria! The man is a daredevil capitalist who believes strongly in manipulatig the system to squeeze the last breadth out of the poor masses.. To think that he is even being used as the top example of successful entrepreneurs, that the young in this country should look up to is simply mind boggling..

.

I'm tired of talking about his matter lest it's interpreted as envy. Let's just disintegrate so I can push for open market economy in my region. No one must control more than 25% stake in any industry.

Mr Dangote, don't push ur luck too far

I thought he was building a refinery to stop importation of fuel so why does he still have his eyes on importation.... These are not business men but criminal racketeers forcing the hand of the market to their advantage

Nigeria really need to practice more of capitalism.
God bless the northern oligarchs.

Most of you complaining, nothing stops you from participating in the economy. If it was an igbo or yoruba man who gave the suggestion, all the thread will be filled with how igbos and yorubas are good entrepreneurs.

Anyway, Rather than shouting crony capitalism and monopoly, dust your trousers, sell your properties, then use the money to start a business then grow it, then maybe you will be like dangote one day.

Atleast his crony capitalism is helping to reduce unemployment in Nigeria

Rugaria:
Loading: The Federal Republic of Dangote

1.There are over 20 licensees for refineries in Nigeria, out of which 4 are active. What Dangote is suggesting will also include these guys, including his arch rival and enemy BUA...

2.Secondly, you did not read the article...

Though the Dangote Refinery will help address this, there could be periods when petroleum products may need to be imported, such as when the refinery is undergoing turnaround maintenance or if demand grows to exceed capacity.”

The suggestion is when the said refinery is undergoing TAM....then imported fuel could be used to meet up with demand..

Of course, restriucting import to refinery licencees is bad economics...but it won't just benefit Dangote.

GamalNasser:
I thought he was building a refinery to stop importation of fuel so why does he still have his eyes on importation.... These are not business men but criminal racketeers forcing the hand of the market to their advantage

If you actually read the article, the importation would happen when the refinery is undergoing TAM or when demand exceeds supply.

Of course, we can have far more refineries if Government allows marketers set the price of petrol.

Nah eh! No qualms
This is so unsophisticated

Rugaria:
Loading: The Federal Republic of Dangote

So true bro, I don't like this either

Buh nigga hustle so your children will enjoy this
Kind Monopoly dangote is enjoying,
Hustle well and bomb steadily so your children won't come back to Nairaland and still complain about another man with mulla Monopolizing the country industries too

Godarz:


If you actually read the article, the importation would happen when the refinery is undergoing TAM or when demand exceeds supply.

Of course, we can have far more refineries if Government allows marketers set the price of petrol.

Untrue. If during periods of fluctuations is what thief Dangote is worried about, he shouldn't be fighting for restricting licenses of participating operators many that have been there decades before he came into business


See. Even the group head/CEO OF BUA petitioned the government against the monopolistic business stance Dangote cement is giving by the government and called for a halt. Example of an effect of his greed. A major equipment in Dangote's cement supply chain got damaged, cement price hiked from 2800 to 4000 Naira. In an open economy, Dangote will make the time to fix his machinery while other produces continue with production


Operators with Monopoly can end up causing war unlike free access economy because they would be vying to hold on to interests over social interests and would sponsor societal conflicts and wars. Example the last 2 presidential elections


The end result of excessively strong monopoly in businesses would ultimately lead to ownership and control of the people. We have plenty of such cases on the global stage, from the control of vaccines to who is free and who is not, to controlling people's lives and destinies is always the end product and not about business.


Business is about fairness and if Dangote is up for business, he should pursue fairness and open market and let Nigeria be.

My G

Dangote sef!

[img]https://media./images/d60ab2e28c1c78f3dbe1474415501fdb/tenor.gif[/img]

Ok

Godarz:


1.There are over 20 licensees for refineries in Nigeria, out of which 4 are active. What Dangote is suggesting will also include these guys, including his arch rival and enemy BUA...

2.Secondly, you did not read the article...



The suggestion is when the said refinery is undergoing TAM....then imported fuel could be used to meet up with demand..

Of course, restriucting import to refinery licencees is bad economics...but it won't just benefit Dangote.

@ the bolded,
Are you not contradicting yourself?

NA THIS MATTER WE JUST DEY SETTLE FOR HERE NOW

See the government using monopolistic they are praising as a model, hardworking businessman.
I bet Dangote operating in any European country would be a failed businessman.
Even an agbero given monopoly to be the only importer or contractor for agbero uniforms and tags in the whole of Nigeria would be a multimillionaire if not billionaire.

monopoly oppression from Dangote is too much

Remember all is vanity, God will judge everybody accordingly.

The wonders of the earth is that Southern Nigeria is blessed with brains and oil but ruled by illiterate north.

Who said we can't be our own country

Seen

ChimaAdeoye:
Typical Fulani man. They are greedy to a fault. They want to totally monopolize Nigeria and exclude everybody else.

The worst thing is that they are too shallow in reasoning that such behavior makes people to oppose them more vigorously. Very soon Dangote's refinery will be allowed to use only oil from Chad basin and not oil of the southerners. Lets keep going and see where all these plots by Fulani to emasculate other Nigerians will lead.

His suggestion would actually drive more people to be refinery owners and thus create more competition for him.

The only downside would be if the licensing of refineries is then restricted.

ShobayoEmma:
Trying to put up his monopolistic agenda in motion in petrochemical sector too. But note this, before the North will use you to indirectly front their economy diversionary to the North; the South would have by far become a separate country where there will be equity, Justice and peace.

Do you not know the Southerners are also behind him? There are those who work behind the scenes.

if the licensing is not restricted to only Dangote then it's a good idea.

We need more private refineries in Nigeria

'Shortfall because of turnaround maintenance'

But the last time I checked Dangote is not the only one building refinery in Nigeria nah!

OR

Would all refineries undergo turnaround maintenance at the same time?

Ayam not understanding o!