HomeBusinessHouse of Reps Urges FG to Break Dangote Refinery Monopoly

House of Reps Urges FG to Break Dangote Refinery Monopoly

The House of Representatives has called on the Federal Government to direct the Nigerian National Petroleum Corporation Limited (NNPCL) and Dangote Refinery to allow independent marketers to lift fuel from the newly established refinery. This resolution was reached after member Oboku Oforji sponsored a motion of urgent public importance.

According to Oforji, despite Dangote Petroleum Refinery’s commencement of operations on September 15, 2024, only major marketers have been granted access to lift products from the refinery. He expressed concerns that this exclusivity spells monopoly and greed, stating, “The House is worried that NNPCL and the major marketers are exclusive off-takers… If this monopoly is not nipped in the bud, the suffering of Nigerians caused by the scarcity of PMS will continue.” ¹

Oforji noted that the late MKO Abiola had previously lamented the NNPCL’s lack of transparency and accountability. He emphasized that allowing only NNPCL and major marketers to lift Premium Motor Spirit is “not good enough.” Independent Petroleum Marketers Association of Nigeria (IPMAN) representatives have expressed fears that they may be forced to import fuel to sustain their businesses.

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On a positive note, Oforji commended the Dangote Group for commencing petroleum refining, marking a significant step towards Nigeria’s energy self-sufficiency. He highlighted the benefits of this achievement, including energy self-sufficiency, cost savings, foreign exchange conservation, and increased Gross Domestic Product.

The House urged Dangote Refinery to establish tank farms or depots across the country to enhance petroleum availability. To address the petroleum sector crisis, Speaker Tajudeen Abbas inaugurated a joint committee with the Senate, chaired by House Leader Julius Ihonvbere.

Other committee members include Kelechi Nwogu, Patrick Umoh, and Sada Soli. This move aims to investigate the crisis and provide recommendations for the way forward.

Dangote Refinery’s vice president, Olakunle Alake, had earlier addressed lawmakers, discussing challenges and milestones. He dispelled monopoly concerns, stating that Dangote Group aims to fill market gaps and support Nigeria’s economic growth.

Alake emphasized the need for flexible crude oil supply arrangements and equitable practices in the petroleum sector.

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