Dangote Refinery: NNPC To Blame For Lack Of Crude, Not IOCs, Says Kelvin Emmanuel

Economist Kelvin Emmanuel says the Nigerian National Petroleum Company (NNPC) is liable for Dangote Refinery not getting capable crude locally, alternatively than International Oil Companies (IOCs). 

Emmanuel said this successful an interrogation with ARISE NEWS connected Sunday, arsenic helium urged the National Assembly and the President to question NNPC’s inability to supply Dangote Fefinery with the $1.7 cardinal feedstock required to finalise the acquisition of 20% of the Dangote Refinery.

“I bash not hold that the IOCs are to blasted for the concern with the deficiency of feedstock. I deliberation the blasted points straight to the NUPRC and the NNPC and the information that a batch of the Nigerian crude lipid has been negotiated connected crude lipid swap agreements…and past home crude lipid proviso obligations to refineries that, successful my opinion, are not existent. The IOCs person what they telephone outgo oil. They person 40%. 

“So, if the IOCs wage their royalties and taxation lipid to NNPC and they fulfil their home crude lipid proviso obligations successful enactment with conception 109 of the PIA, the IOCs bash not beryllium the Dangote Refinery a close of archetypal refusal for its feedstock due to the fact that each crude lipid they get successful Nigeria really is exported successful fossil agreements that they already person with clients years ahead. So, I deliberation we request to situate the blasted wherever it belongs and it belongs connected the shoulders of NNPC.

“So, these are the questions the nationalist assembly and the president should inquire the NNPC; wherefore were you not capable to wage the $1.7bn successful feedstock to implicit the acquisition of 20% that volition marque you ain a 5th of the largest refinery successful Africa and arguably the world, that has the imaginable to nutrient $28bn successful gross connected a yearly basis?

“Between 2019 and 2024, NNPC has borrowed $12bn dollars done Afrexim and they person staked astir 250 cardinal barrels of crude lipid arsenic collateral successful reserved basal lending for that loan.”

Emmanuel underscored Nigeria’s agelong past of importing petroleum products and the important fiscal concern made successful refinery attraction implicit the years. 

He besides expressed disappointment successful the NMDPRA’s stance connected Dangote Refinery, peculiarly the assertion that Dangote aims to halt the importation of petrol and diesel.

“The question is Nigeria has been importing petroleum products for 52 years. In the past 20 thing years, the authorities has spent 12 trillion successful crook astir attraction and the refineries are inactive dead. In my opinion, I don’t deliberation those refineries should beryllium relied connected anyways. So, if an entrepreneur takes up the situation of investing $20bn to physique a refinery, the authorities should enactment him.

 “I americium really amazed that the NMDPRA brag inactive has a job. Isn’t it the extremity to trim oregon destruct the request for imports? Nigeria spends $2.4bn monthly connected vigor imports. With a afloat operational Dangote Refinery, we could nutrient 49.4 cardinal liters of PMS, 26 cardinal liters of diesel, and 12 cardinal liters of Jet A1 daily.”

Emmanuel defended the prime of the Dangote Refinery’s diesel, noting that its output is importantly superior to that of imported diesel, opining that Dangote volition hitch disconnected lipid importation successful Nigeria.

“I would accidental that the Dangote Refinery is going to hitch disconnected the importation business. The trial that has been done astatine the Dangote refinery produces diesel astatine 87.6 parts per million. The trial that was done for TotalEnergies downstream and Metrics Energy…Total produced astir 1824 parts per cardinal diesel for imported diesel into Nigeria and Metrics Energy produced astir 2,254 parts per cardinal for imported diesel into Nigeria.

“So, his diesel is mode amended than what is imported into Nigeria and if the National Assembly wants to bash better, they tin enlistee SGS which is 1 of the reputable gasoline investigating firms successful the world.”

Chioma Kalu

The station Dangote Refinery: NNPC To Blame For Lack Of Crude, Not IOCs, Says Kelvin Emmanuel appeared archetypal connected Arise News.