Since the off-script ‘subsidy gone’ pronouncement of the current president during his inauguration last year, Nigerians have been subjected to harrowing experiences in their quest to get the fuel, which is essential for everything – transportation, providing power at homes and businesses. Dangote Refinery’s petrol is expected to provide stability.

Morning show anchors at Arise TV and Channels TV, and other journalists were apparently more exultant than members of the Dangote Refinery management today when the refinery owners announced it had commenced the production of petrol. The fuel will hit pumps Thursday latest, breaking a jinx and ending the shame of a country that would rather export crude oil and collect refined petroleum products in exchange. It has been 28 years since Nigeria last refined a litre of petrol.

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At the national interest level is the joy that the opacity that surrounded petrol importation and distribution will finally come to an end. NNPC, the sole managers of the importation of petrol in the last few years, have always advanced reasons it was unable to meet local demand.

From smuggling of petrol to neighbouring countries to rain and thunderstorms affecting loading at jetties, to Nigerians buying petrol in kegs for their generators, among many other asinine reasons, as the cause of the perennial fuel queues.

Just a few days ago, the state oil company admitted it was in the red to the tune of US$ 6.8 billion. That, many people pointed out, is the real cause of the current fuel scarcity. 

Unable to move forward, NNPC had been waiting for petrol from Dangote Refinery to meet the growing huge gaps in supply.

The private refinery will not sell its petrol at subsidised rates, just as it has been selling diesel and aviation fuel at market rates. With NNPC jerking up the pump price of petrol to ₦895/litre on the eve of receiving petrol from Dangote Refinery, many analysts have pointed out that the real subsidy on petrol is the difference between the ₦586/litre NNPC sold the product yesterday to its new ₦895/litre; that is, about ₦309/litre, not the often touted ₦614/litre.

I would like to commend the people of Nigeria and the government of President Bola Tinubu for providing us with a platform for growth, development, and prosperity. I also want to thank him personally for introducing the idea of exchanging crude for Naira. This initiative will contribute to the stability of the Naira. With this refinery in operation, we will have a clear picture of Nigeria’s true consumption. We will be able to track every truck and shipload,” was how Aliko Dangote, President of the Dangote Group announced the commencement of loading of locally refined petrol.

The $20billion refinery is the single biggest private sector-led project in Nigeria and one with the potential to reverse the decades-long shameful practice of importing petrol despite the existence of four government-owned refineries. Although the statement above is celebratory, underneath is still a combative stance.

This rallied Nigerians behind Dangote, with former President Olusegun Obasanjo pitching in, thereby putting pressure on the government, which then acceded to delivering crude oil cargos to the local refineries as enshrined in the Petroleum Industry Act, and, even more importantly, these deliveries will be settled in Naira.

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Dangote Refinery is expected to bring some modulation to petrol pricing which has oscillated between ₦586/litre and ₦1,200/litre since last year.

Even more important, he is also expected to finally end the corrupt fuel importation regime that defied the solution for over two decades. After all, the loans he took to build the refinery must be repaid, and also turn a profit.

Adewole Ojo

Adewole Ojo is the Editor-in-Chief of Meiza Nigeria. He can be reached on adewole.ojo@fourpoints.ng.