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Energy Crisis: Domestic refining will address fuel scarcity, queues in Nigeria, says NBA

L-R: Fatima Aliko Dangote, Group Executive Director, Commercial Operations, Dangote Industries Limited (DIL); Aliko Dangote, President/CE of DIL; Yakubu Maikyau, President of NBA; and Devakumar Edwin, Vice President, Oil & Gas, Dangote Industries Limited, During the NBA Delegates Visit to Dangote Petroleum Refinery and Fertiliser in Lagos         Photo: Dangote Group

*The Nigerian Bar Association urges President Bola Ahmed Tinubu to implement his recent directive on crude supply to Dangote Petroleum Refinery and other modular refineries, stating the government and Nigerians’ support to the refineries will end ‘the reign of perennial fuel scarcity and attendant queues at filling stations’ in the country

Isola Moses | ñ

The Nigerian Bar Association (NBA) has urged the Federal Government on the full implementation of President Bola Ahmed Tinubu’s recent directive on crude supply to the Dangote Petroleum Refinery, and other modular refineries in the country.

Describing the establishment of the refinery as both nationalistic and patriotic endeavour, the NBA ─umbrella professional association of lawyers─ also asked the Federal Government and Nigerians to support the Dangote Petroleum Refinery to end the reign of perennial fuel scarcity and attendant queues at filling stations in Nigeria.

Dangote Group, in a statement, noted the Association, led by Yakubu Maikyau, President of NBA, who led other leaders and members of the legal association on a visit to the facility, Wednesday, August 21, 2024, in Lagos, further expressed disappointment that the major oil-refining project is encountering strong resistance from fuel importers, who have stifled the economy, and kept it reliant on imported refined petroleum products, despite Nigeria’s status as a leading crude oil producer.

Maikyau commended Aliko Dangote, President/Chief Executive of the Dangote Group, for remaining steadfast despite the opposition faced.

He further stated: “What I have seen today gladdens my heart, but at the same time, my heart is bleeding because of the neglect and opposition that such a laudable effort is facing.

“It is shameful, but as I mentioned to the President of the group, his continued steadfastness and resilience despite the opposition show that there is hope for this country.”

The President of NBA said: “I would describe Aliko Dangote as both a freedom fighter and an economic warrior. There is no one more honourable or patriotic than Dangote. He has proved this through his actions, not just words.

“This isn’t about what someone might tell you; we have witnessed the enormous investments he has made in this country.”

Maikyau as well urged the Federal Government to create a supportive environment for the refinery, aiming to transform Nigeria into a net exporter of refined petroleum products and to alleviate the severe hardships caused by fuel scarcity.

The NBA Chief lamented that it is shameful for the Dangote Petroleum Refinery to import crude from abroad and export refined products due to opposition from local players

Stated he: “I want to use this opportunity to call on the Federal Government to pay deliberate and conscious attention to what Dangote is doing.

“Anyone serious about turning around the fortunes of this country cannot ignore Dangote’s efforts. This is a people-centered investment that must be supported.

“This is the type of investment we need, and wherever such investments exist in this country, we urge the government to create an enabling environment for the benefit of the people.”

Maikyau also noted: “If we establish a supportive environment for this refinery to operate, we will eliminate the queues on our streets and resolve the difficulties associated with the scarcity of petroleum products.

“However, we will need the government to demonstrate a willingness to support this crucial venture. We have a facility here that can compete with the best in the world, but unfortunately, it is not receiving the support and recognition it deserves.

“It is disgraceful that with a refinery of this capacity, where 86 tankers can be loaded at once, we still face fuel shortages.”

In his remarks during the visit also, Ivo Takor, Vice-Chairman of the Epe Branch of the NBA, hailed the location of the refinery in the Ibeju-Lekki-Epe axis of Lagos State.

Takor stated that the project has the potential to resolve the long-standing issue of fuel importation, create jobs, boost foreign exchange, and save the country money currently spent on subsidising petroleum products.

He said: “The refinery is something every Nigerian should be proud of. It is a project that will move Nigeria away from its long-standing issue of fuel importation, which comes with its own set of problems.

“Currently, we are dealing with fuel scarcity and long queues. I believe that once this refinery is fully operational, these challenges will be resolved.

“Additionally, the refinery has the capacity to export some of its products, bringing foreign exchange into the economy.”

The NBA Epe Branch top executive stated: “It will also reduce the government’s expenditure on subsidies, allowing funds to be redirected towards improving infrastructure, education, and the health sector.

“Since its construction, many jobs have been created, and further job creation will follow when it becomes fully operational.”

He, however, noted that despite these benefits, there are some entrenched cartels against the full operation of the refinery.

Applauding President Tinubu for directing the supply of crude to both the refinery and modular refineries across the country, he emphasised the need for stringent monitoring to ensure compliance.

Takor further stressed that withholding crude from the refinery constitutes sabotage against the nation and should be met with appropriate sanctions.

“Unfortunately, it appears that there is a well-established cartel working against the full operation of this refinery, specifically those who do not want to supply it with crude oil. “It is illogical for Nigeria to export crude oil while the refinery also imports crude. This situation reflects the interests of entrenched forces who benefit from fuel importation, which negatively impacts the people and the economy,” said he.

The Vice-Chairman of NBA Epe Branch also asserted: “Fortunately, the president has issued a directive regarding the supply of crude to the refinery. However, beyond this directive, it is crucial to ensure compliance.

“Those who do not comply should face adequate sanctions, as failure to do so constitutes sabotage not only against the refinery but against the economy as well.”

Devakumar Edwin, Vice-President (Oil & Gas) at Dangote Industries Limited, informed the delegates, that the refinery was established primarily to source and refine local crudes for the benefit of Nigeria, while also exporting excess production to boost the economy.

Edwin noted that the lack of sufficient Nigerian crude supplies has necessitated importing crude from other countries and continents while exporting refined petroleum products abroad.

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