EXPOSED: How Dangote Lied To Tinubu Over 500 Million Fuel Storage Claims
Aliko Dangote, the billionaire industrialist, reportedly misled President Bola Ahmed Tinubu regarding his fuel storage capacity, claiming to have 500 million litres available.
It was gathered that Dangote is charging ₦990 per litre for loading at his refinery, with a minimum purchase requirement of 1 million litres, all of which must be paid for in advance.
Sources privy to the recent discussions between Dangote and President Tinubu disclosed that Dangote misled the president during their meeting by claiming he had 500 million litres of fuel in 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.
“The total cost of chartering a vessel, port fees, and discharge to a private depot is about 60 naira per litre, making the landing cost for private depot owners 971 + 60 naira. This is the reason why private depots are not buying,” one of the sources said.
The source said that as a result, no private depot owner can afford to compete with Dangote.
“Femi Otedola has suggested that private depot owners should sell their depots as scrap, which highlights the struggles in the market,” the source said.
The source explained that the Independent Petroleum Marketers Association of Nigeria (IPMAN) is unable to purchase because they cannot afford to pay ₦990 million for 1 million litres of PMS.
“Dangote’s target is to sell to the Nigerian National Petroleum Company (NNPC) Limited, which will then sell to other distributors,” the source said.
One of the sources also revealed that Dangote urged President Bola Tinubu to compel NNPC to purchase fuel from his refinery.
However, President Tinubu reportedly clarified that NNPC would only make purchases if the pricing was deemed reasonable, emphasizing that Dangote should treat NNPC similarly to other oil companies like Total and 11 PLC.
When questioned about the volume of fuel he claimed to have, Dangote reportedly expressed uncertainty about the current naira-to-dollar exchange rate, stating that he was awaiting guidance from NNPC.
“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 of the sources said.
The source added that Dangote appears to be aiming for a subsidy and a monopoly; however, President Tinubu has removed the subsidy, creating an environment conducive to monopoly.
“Dangote’s target is subsidy and monopoly, unfortunately President Tinubu had removed subsidy and this would bring monopoly.
“At the recent meeting, Dangote misled the President, claiming he had 500 million litres in storage. When the President asked him why he was keeping such volume, he stated that he was unsure about the naira-to-dollar exchange rate and was waiting for NNPC to provide a rate.
“The President pointed out that as a smart businessman, he should not need to wait for guidance from NNPC regarding exchange rates.
“Dangote urged the President to force NNPC Retail to purchase his fuel, but the President clarified that NNPC should only buy if the price is right and that Dangote should treat NNPC the same way he would treat Total and 11 PLC (formerly Mobil Oil Nigeria),” the source said.
It was also learnt that the billionaire businessman also wanted the President to fix the foreign exchange rate to use but Tinubu declined.
One of the sources said, ” Dangote also wanted the President to fix the naira to dollar exchange rate and president refused and said ‘No’.”
Sources said that African Export – Import Bank (Afreximbank) representatives also attended the meeting because the bank wants to become the settlement bank.
“The President of Afreximbank, Dr Benedict Okey Oramah is retiring next year from the bank, and he needs to protect his private investment in Dangote Refinery, just like former Central Bank Governor, Godwin Emefiele.
“Oramah and Zacchs Adedeji of the Federal Inland Revenue Service (FIRS) are doing everything possible to force NNPC to give foreign exchange discount and foreign exchange subsidy to Dangote. They are putting pressure on NNPC to give this foreign exchange subsidy and charge it to the federation account but NNPC is resisting that.
“They want NNPC to provide foreign exchange discounts and subsidies to Dangote, which NNPC is currently resisting.
“Now, plans are underway to push for the removal or sacking of NNPC management if they refuse to cooperate with them. They want to bring in a Kano man named Engineer Rabiu Suleiman,” the source added.
