Home spotlight NNPC boss Mele Kyari refutes Dangote’s claim that some ”NNPC people” own...

NNPC boss Mele Kyari refutes Dangote’s claim that some ”NNPC people” own blending plants in Malta where substandard petroleum product is shipped from

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* Emir Sanusi says, “People in NNPC don’t want their lucrative subsidy scam to end”

With Chairman of Dangote Group, Aliko Dangote, alleging that some Nigerian National Petroleum Company (NNPC) Limited staff members and oil traders operate a blending plant in Malta, an island nation in Europe, Emir of Kano, Muhammadu Sanusi II said, “people in NNPC don’t want their lucrative subsidy scam to end.”

Meanwhile, the Group Chief Executive Officer of NNPC, Mele Kyari, has responded to allegations made by Africa’s richest man, Aliko Dangote, that some ‘’NNPC people” operate a blending machine in Malta, an Island country in Southern Europe, from where they now ship substandard products into the country.

While speaking at the House of Representatives on Monday, July 22, Dangote said:

“Some of the terminals, some of the NNPC people and some traders have opened blending plants somewhere off Malta. We all know these areas. We know what they are doing”

Responding to the claim via his social media handle today July 23, Kyari said he does not operate any blending machine anywhere in the world and neither does he know of any staff of NNPC who operates a blending machine in any part of the world. 

His statement reads:

”I am inundated by enquiries from family members, friends and associates on the public declaration by the President of Dangote Group that some NNPC workers have established a blending plant in Malta thereby impeding procurements from local production of Petroleum products.

To clarify the allegations regarding blending plant, I do not own or operate any business directly or by proxy anywhere in the world with the exception of a local mini Agric venture. Neither am I aware of any employee of the NNPC, that owns or operates a blending plant in Malta or anywhere else in the world.

A blending plant in Malta or any part of the world has no influence over NNPC’s business operations and strategic actions.

For further assurance, our compliance sanction grid shall apply to any NNPC employee who is established to be involved in doing so if availed and I strongly recommend that such individuals be declared public and be made known to relevant government security agencies for necessary actions in view of the grave implications for national energy security.”

Dangote made these revelations over the weekend during a meeting with the louse of Representatives, leadership led by Speaker Tajudeen Abbas and Deputy Speaker Benjamin Kalu.

Dangote emphasised that the Dangote Refinery products are far better quality than the imported ones.

“The bad fuel imported into the country has damaged many cars. I still stand by what I said. Go to filling stations, you can check the quality. That is the only way,” he stated.

He further claimed, “We know where they blend these things. Some of the NNPC people and some traders have opened a blending plant somewhere off Malta. We all know these areas. We know what they are doing.”

Pulse.ng writes that Nigeria, Africa’s most populous nation, faces significant energy challenges, with all its state-owned refineries currently non-operational.

The country relies heavily on imported refined petroleum products, with the state-run NNPC being the major importer.

Fuel queues are common, and the price of petrol has tripled since the removal of subsidies in May 2023, exacerbating the difficulties faced by citizens who rely on petrol for their vehicles and generators amid unreliable electricity supply.

According to Channels TV, Dangote’s $20 billion refinery in Lagos began operations last December with a capacity of 350,000 barrels per day.

The facility aims to reach its full capacity of 650,000 barrels per day by the end of the year.

While the refinery has started supplying diesel and aviation fuel to marketers, petrol supply is expected to commence in August.

During his meeting with federal lawmakers, Dangote reiterated the importance of transparency and accountability in the oil industry.

He dismissed claims that products from his refinery are substandard and urged the green chamber to investigate the quality of diesel and petrol at filling stations across the country.

Watch the video below.

Weighing in on the matter, Muhammadu Sanusi II said that Alhaji Aliko Dangote should not be blamed for buying dollars at lower rates at the time he was building his refinery because that was the actual rate the apex bank was selling to everybody at that time.

The 16th Emir of Kano commented on the issue through the SOP Chat Group.

He initially said: “I honestly do not think it is a good idea for me to make comments on these issues, but some comments surprise me, and I just have to say something.”

The emir then went on to add: “Aliko Dangote did not fix the price at which the CBN sold dollars. Everyone who got dollars from the CBN got dollars at the same rate if they bought on the same day. So we cannot blame him for buying dollars at a rate the CBN itself decided to sell to its customers.

“So the question for me is this. Let us forget the man Dangote. If the Central Bank were to prioritize a single enterprise for forex allocation, how many enterprises can we think of that are worthier than a refinery like this one?

“Consider the drain on our forex from importing petroleum products; the tens of billions of dollars of forex spent abroad; the huge losses due to theft in the name of subsidy.

“By the way, how much forex did Dangote buy from the CBN at this subsidized rate? How much forex did NNPC take from the federation account in the same year in the name of running and turning around its dead refineries? What are we benchmarking against?

“If any Nigerian came to me as a Central Bank Governor with a project like this refinery, I would recognize immediately its potential impact on the economy and give it all the support needed.

“Let our views on forex policies not becloud our sense of priorities. Once the CBN decided to sell dollars at the below market, it would be forced to ration the limited dollars available.

“To my mind, giving dollars for the construction of a refinery is better than rice importers and, indeed, almost every other enterprise apart from education and health, given the impact on the macro.”

On the argument by NNPC that relying on one refinery is bad for our energy security, Muhammadu Sanusi II said: “This is most laughable. On the contrary, relying on a local refinery is far more secure than these imports.

“It is a very rich argument from an entity that had taken billions of dollars in the name of turnaround maintenance and not produced a drop of product from four refineries because it is more profitable to continue extracting rent in the name of subsidy. If NNPC activated its refineries, there would be no monopoly. Then, we can see the sulphur content of its products and compare them to Dangote’s.”

He continued: “Until then, keeping quiet is the honourable option for it, NNPC and its spinoffs have lost any right to talk until they fix the mess they have thrown us into

“In any case, if the Dangote refinery is unable to meet local demand, the gap can be filled by imports, these people in NNPC do not want to end their lucrative subsidy scam, and I don’t think they will end it.

“But as a nation, if we do not thank Dangote for what he has done as an African to deal a hammer blow to multinationals and the rentier system and for structural change in this economy through value added in various sectors, we should not condemn him.

“Also, we tend to repeat stories without evidence. We hear about Dangote getting favourable taxation but no one has said what this tax is, if he got it alone or if it was offered to a sector or to pioneers, and if such a practice is in fact normal to encourage investment.”

The emir concluded: “Instead of killing Dangote, we should try and make more like him. Nigeria always kills its heroes and its best because of envy and pettiness.”

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