Ex-NDIC Boss Speaks on Dangote Refinery Importance, As Filling Stations Adjusts Petrol Price Again
- Former Managing Director of the NDIC, Umaru Ibrahim, has reiterated the importance of the Dangote refinery
- He stressed that the refinery, if supported, will end fuel scarcity and the country's reliance on imported petroleum products
- There is another round of petrol pump adjustments at filling stations across Nigeria as scarcity hits again
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Umaru Ibrahim, former Managing Director of the Nigeria Deposit Insurance Corporation (NDIC) has asked the federal government to give full support to Aliko Dangote's refinery.
According to him, the refinery is crucial to mitigate the negative consequences of fuel scarcity.
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However, Ibrahim who spoke at the 2024 Mid-Year Enterprise Risk Management (ERM) Conference organised by the Association of Enterprise Risk Management Professionals (AERMP) in Lagos.
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Ibrahim’s statement followed a dispute between Dangote refinery and Farouk Ahmed, chief executive officer (CEO) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
On July 18, Ahmed said local refineries, including the Dangote refinery, produce inferior products compared to the ones imported into the country.
Ibrahim advised regulators to engage in self-regulation to maintain credibility and relevance while adopting measures against risks.
He further urged regulators to exercise caution to prevent risks to the public and support Dangote refinery from operating optimally, adding that fuel queues had reappeared in Lagos, a development he described as a bad sign.
He said:
"“I expect the regulator to exercise more caution even if the regulator has all the facts. Regulators should not take actions that could harm or de-market the institutions they regulate.”
Fuel scarcity in Nigeria
There had been a resurgence of petrol scarcity in many parts of the country.
The Nigerian National Petroleum Company (NNPC) has attributed the petrol scarcity in parts of Lagos and Abuja to disruptions in the discharge operations of several vessels.
Olufemi Soneye, NNPC's Chief Corporate Communications Officer, assured that the company is collaborating with stakeholders to resolve the issues affecting petrol supply and distribution.
Filling station adjusts prices
Meanwhile, filling stations have increased fuel prices amid heavy traffic queues in Lagos.
Vanguard reports that, besides the NNPC, fuel stations sell at N650 per litre, while other independent marketers sell between N850 and N950 per litre.
As a result, black marketers have taken advantage of the situation, selling the product to desperate motorists at exorbitant rates of up to N1000 to N1400 per litre.
Black market dealers were seen hawking the product at Egbeda, Ikotun, LASU-Iba Road, Ikeja, and Agege, among other locations.
FG gives orders to regulators over Dangote refinery
Legit.ng earlier reported that the Nigerian government, via NMDPRA, expects fresh reports to confirm the sulphur content of the diesel produced by the Dangote Refinery, as the firm denied claims of inferior products.
The authority’s spokesman, George Ene-Ita, disclosed that the NMDPRA had done its job and would not engage in a media war with anyone over its chief executive, Farouk Ahmed, 's claims that the sulphur content on Dangote diesel is high.
He disclosed that the agency has about 15 engineers and scientists attached to the Dangote refinery. Their reports about the refinery’s sulphur content will be out on Monday, July 22, 2024
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Source: Legit.ng
