In the last one month, easily one of the most discussed issues in Nigeria is the allegation by the Dangote Refinery accusing the International Oil Companies (IOCs) of frustrating its operations by refusing to sell crude to it.
In a statement released in July, which later followed up by Alhaji Aliko Dangote himself, the company said the IOCs preferred to sell their crude to Asian countries or ask them to buy from the foreign subsidiaries instead of giving them priority as directed by Nigeria’s upstream regulatory body, the National Upstream Regulatory Commission (NUPRC).
The company said this development would significantly affect the price of its products because to increase because the trading arms offer cargoes at $2 to $4 per barrel, above NUPRC official price.
“When we entered the market to purchase our crude requirement for August, the international trading arms told us that they had entered their Nigerian cargoes into a Pertamina (the Indonesia National Oil Company) tender, and we had to wait for the tender to conclude to see what is still available”, the company said recently in a statement.
In addition to the allegation against the IOCs, Dangote and his group have also accused oil marketers of shady business practices such as importation of adulterated diesel.
Naturally, some Nigerians have in a fit of patriotic fervor, lined up behind the Dangote Refinery accusing both the Nigerian government and the NNPC Limited, which, like Dangote, is a business entity operating in the same market, of through a business owned by a Nigerian under the bus.
The picture has been painted of a government not supportive of indigenous investment in the Nigerian oil and gas sector.
But is this really the case? Is the Federal Government throwing Dangote to the sharks? Is it out to destroy his business as is being alleged by some Nigerians? The truth is, the allegations do not square with the reality on the ground but are largely driven by sentiments.
Before addressing the real issues, let me first of all make a point which discerning Nigerians will admit to be the truth and nothing but the truth. And this is the fact that there is no Nigerian businessman living or dead who has been as mollycoddled or pampered by successive Nigerian governments, as Alhaji Aliko Dangote.
