By Okafor Joseph Afam
November 4, 2024

Billionaire industrialist Aliko Dangote has come under scrutiny for allegedly misleading President Bola Ahmed Tinubu regarding his fuel storage capacity, claiming to have 500 million litres readily available. Reports indicate that Dangote is charging ₦990 per litre for fuel from his refinery, with a minimum purchase requirement of 1 million litres, all of which must be prepaid.

Sources familiar with recent discussions between Dangote and President Tinubu disclosed to SaharaReporters that during their meeting, Dangote misrepresented the volume of fuel in his storage. “Delays in loading are common. If buying with a vessel, the minimum purchase is 15,000 metric tonnes (approximately 20 million litres) at ₦971 per litre,” one source explained.

Further analysis revealed that the total costs associated with chartering a vessel, port fees, and discharging to a private depot amount to about ₦60 per litre, making the landing cost for private depot owners ₦1,031 per litre. This high cost has rendered it difficult for private depot owners to compete with Dangote’s pricing.

“Femi Otedola has suggested that private depot owners should sell their depots as scrap, which underscores the struggles in the market,” the source added.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has also been unable to purchase fuel at Dangote’s price, with members unable to afford ₦990 million for 1 million litres of Premium Motor Spirit (PMS).

Sources suggest that Dangote is targeting the Nigerian National Petroleum Company (NNPC) Limited as a primary buyer, intending for them to sell to other distributors. Reports indicate that he urged President Tinubu to compel NNPC to buy fuel from his refinery, but the President made it clear that such purchases would only happen if pricing was competitive.

“NNPC doesn’t want to buy from Dangote because they must cover their costs while also making a profit, which could lead to higher prices for consumers. NNPC does not want consumers to pay more,” one source remarked.

During the meeting, when questioned about the volume of fuel he claimed to have, Dangote reportedly expressed uncertainty about the current naira-to-dollar exchange rate, stating he was awaiting guidance from NNPC. President Tinubu countered this by suggesting that as a savvy businessman, Dangote should not need to rely on NNPC for such information.

Furthermore, Dangote sought to have the President fix the foreign exchange rate, but Tinubu refused. “Dangote also wanted the President to fix the naira-to-dollar exchange rate, and the President said ‘No’,” the source disclosed.

Representatives from the African Export–Import Bank (Afreximbank) were also present at the meeting, as the bank is interested in becoming the settlement bank for Dangote’s transactions. According to sources, Dr. Benedict Okey Oramah, the President of Afreximbank, is nearing retirement and is keen on protecting his investments in Dangote’s refinery, similar to the interests of former Central Bank Governor Godwin Emefiele.

Reports suggest that Oramah and Zacchs Adedeji of the Federal Inland Revenue Service (FIRS) are exerting pressure on NNPC to provide foreign exchange discounts and subsidies to Dangote. However, NNPC is resisting these demands, with plans reportedly underway to remove or sack NNPC management if they refuse to cooperate.

“They want NNPC to provide foreign exchange discounts and subsidies to Dangote, which NNPC is currently resisting,” the source added. “Plans are in motion to push for changes in NNPC management if they don’t comply, targeting a Kano man named Engineer Rabiu Suleiman for a potential leadership role.”