Adeyanju: Dangote Benefits from Unwarranted Government Support Should Price Fuel at N500

Deji Adeyanju, a prominent Nigerian activist and constitutional lawyer, has expressed skepticism about the benefits of fuel production from Dangote Refinery for Nigerians. In an interview with DAILY POST, Adeyanju argued that the introduction of Dangote’s fuel is unlikely to lower prices. He suggested that Dangote should sell his fuel at around N500 per litre, given that he acquires crude oil in naira. Adeyanju also discussed several other national issues. Here are some key excerpts:

Will Dangote Refinery lower fuel prices in Nigeria?

No, not at all. In fact, Dangote’s fuel might be more expensive than current market prices because he operates as a capitalist and is unlikely to offer subsidies. They claim that NNPCL will be the sole buyer to help subsidize the fuel, but this doesn’t make sense. Dangote’s fuel could be priced between N1300 and N1400 per litre, making it unaffordable for the average Nigerian. The idea that NNPCL is purchasing crude oil in naira is flawed; crude oil transactions are internationally priced in dollars. Since International Oil Companies (IOCs) handle the crude extraction and trade, it’s illogical for them to sell to Dangote in naira when they can earn more in dollars. There are numerous undisclosed issues at play here.

Why is Dangote receiving special treatment from NNPC?

It’s puzzling why NNPC is selling crude to Dangote when he should be sourcing it independently, just like other players in the industry. The refinery belongs to Dangote, so why the preferential treatment? NNPC should also privatize its other refineries to foster competition. Private ownership could lead to better management and operation of refineries, as the government has historically proven to be ineffective in managing business ventures. If the government allows the market to function freely, fuel scarcity and other issues could be resolved.

Will Dangote’s control over petrol prices skew the market?

Yes, it seems that the system is rigged. Market forces should dictate fuel prices, not Dangote. Governments worldwide subsidize products, but creating artificial scarcity is problematic. Why has fuel scarcity persisted if subsidy payments are still being made? There’s no clear mechanism to prevent Dangote from selling our crude oil at a subsidized rate outside the country, which could lead to ongoing scarcity and exploitation.

Will Dangote Refinery end Nigeria’s fuel scarcity?

It seems the government is giving Dangote unchecked authority in the oil sector. There are concerns about whether other fuel importers will be sidelined and how much Dangote will supply locally versus abroad. These are critical questions that need answers.

Impact of Dangote’s refinery on Nigeria’s economy

Dangote’s refinery won’t necessarily improve Nigeria’s economy. With fuel prices potentially rising to N1300 per litre, inflation could soar, worsening the economic situation. The refinery won’t offer significant benefits to Nigerians, given Dangote’s capitalistic approach.

Nigerians’ prospects under Tinubu’s administration

The current administration is likely to worsen Nigeria’s economic situation. Tinubu’s policies seem set to increase inflation, unemployment, and suffering. His leadership is characterized by ineffective propaganda rather than substantive governance. His recent trips to China and Qatar, marked by large, extravagant delegations, reflect poorly on his seriousness as a leader.

Views on the prosecution of EndBadGovernance protesters

It’s troubling that protesters are being prosecuted while bandits roam free. The current administration seems more concerned with suppressing dissent than addressing real security issues. The era of safe protest seems to be over, which is a troubling development for democracy.

Future of PDP with Wike’s comments

The PDP is struggling with internal divisions and alleged moles working against the party’s interests. Without significant reform, the PDP faces a bleak future in upcoming elections.

Possibility of a coalition against Tinubu in 2027

Currently, there’s little indication that Atiku, Kwankwaso, and Peter Obi will form a successful coalition to challenge Tinubu in 2027. Their level of seriousness and coordination remains questionable.