By Ochereome Nnanna
The #EndBadGovernment protests largely flopped partially because they demanded for the restoration of the petrol subsidy. In life, better be careful what you wish for because it might actually come true!
If for any reason President Bola Tinubu acceded to this demand, the engine of his government would knock. Petrol is selling between N640 and N800 per litre, and it is still scarce. Imagine returning it to N180? All petrol stations will close shop, and we will be buying at the black market between N1,500 and N2,000 per litre. The train has left the subsidy station, and it will never come back.
We should be looking at the next best thing: full
activation of Nigeria’s indigenous refining capacity. Nigeria is at the
threshold of this historic achievement, far more than she ever was in 2011 when
former President Goodluck Jonathan wanted to remove subsidy amidst 100 per cent
import dependency. At that time, one of Organised Labour’s conditionalities
before accepting full deregulation of the downstream sector was that our
refineries must first be reactivated. Otherwise, Nigerians would be abandoned at
the mercy of fuel import sharks.
Today, Nigeria is on the verge
of exiting fuel importation. All the four government refineries in Port
Harcourt, Warri and Kaduna are on course for reopening for full operations, as
we keep hearing. More importantly, the Dangote Refinery, one of the largest of
its type in the world, will go into full capacity operation in a matter of
days. We also have other upstart modular refineries in Owerri and Port
Harcourt, awaiting crude supply from the NNPCL.
President Tinubu recently
ordered the NNPCL to supply all these facilities with adequate crude oil at our
Naira rate. The pressure of activists should be on the president, who doubles
as Petroleum Minister, to sign an agreement with these domestic refiners. They
should be supplied crude at a concessionary rate that will enable them sell to
the domestic market at an affordable price. Nigerians will welcome petrol price
of N250-N300 per litre with jubilation. We have the oil, and we have the
refineries. They can export at international prices. This is the good
government we are clamouring for.
Cheaper fuels will not be a mere
Father Christmas gesture. It will be a major production bailout. It will send
idle hands back to work and give value to the Naira. It will reduce criminality
and make people feel better about their country and government. After more than
30 years of starving Nigerians of locally-refined petroleum products and
squeezing their pockets, we deserve a break, a breather.
But, are we going to get it? Why
is it that, two weeks after Tinubu ordered NNPCL to supply crude to the
refineries and in Naira, Dangote is still complaining of noncompliance?
Secondly, the supply in Naira without addressing the need to subsidise the
crude for domestic supply of refined products will not address the astronomical
cost of fuels. It only eases the foreign exchange headache of the refiners
without addressing the pockets of the consumers. There is little in it for the
people.
Most importantly, what is the
truth behind the “Malta refinery” rumour? Aliko Dangote accused “some NNPC
people and some traders” of owning blending plants in Malta. The name of
Tinubu’s family was also dragged into the controversy. A company they have an
interest in, Oando, recently denied the allegation that it is a shareholder in
oil blending plant, Raz Hansir Oil Terminal Ltd, in Malta.
The inability of Dangote and
others to commence full operation, including the refusal of NNPCL to supply
them with crude since their completion are things Nigerians cannot explain. Are
there people within the power structure of the industry whose personal
interests will be hurt by Nigeria’s re-emergence as a net exporter of refined
oil products?
It is the duty of President
Tinubu to put Nigeria first and remove those obstacles. He must constantly and
transparently demonstrate to Nigerians that his family’s interests are not
placed above those of Nigeria in the oil sector which he rules. He must not be
seen as the problem in our oil sector. That will not endear him to the people.
*Nnanna
is a commentator on public issues
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