Kelvin Emmanuel, an energy expert, has accused the Nigerian National Petroleum Corporation (NNPC) of mismanaging the country’s deregulation processes and energy transition. According to him, the NNPC favours the importation of Premium Motor Spirit (PMS) over supplying the Dangote Refinery with adequate crude oil feedstock for domestic refining.
During an interview with Trust TV’s Abdullahi Ahmed, Emmanuel stressed that NNPC has yet to issue an official statement confirming the deregulation of the market. He believes this reluctance allows NNPC to shift the blame onto Dangote Refinery, creating the illusion that rising fuel prices are the refinery’s fault. However, Emmanuel pointed out that in September 2024 alone, NNPC imported 814,000 metric tons of PMS—equivalent to 1 billion litres—and has already booked cargos up to December. Instead of using its crude intervention stock to support Dangote’s refinery, NNPC continues to swap crude oil with international traders to obtain PMS for Nigeria.
Energy Security Concerns
Addressing concerns about relying solely on Dangote Refinery for energy security, Emmanuel posed a critical question: “How many companies in Nigeria have invested $10 billion in the last 30 years?” He emphasised the sheer scale of Dangote’s refinery, which is the seventh largest in the world. Given the high barrier to entry for building a refinery of that size, he argued that the government should collaborate with Dangote to achieve full backward integration rather than worry about a monopoly.
Emmanuel further challenged critics, urging those complaining about monopolies to invest their funds in Nigeria rather than keeping them abroad.
Deregulation Delays and Confusion
During the interview, Emmanuel highlighted the government’s incomplete deregulation process. While the Minister of Information has claimed that deregulation has shifted the responsibility away from the government, citing factors such as foreign exchange and the Middle East crisis, Emmanuel dismissed these justifications. He questioned why Nigeria, an OPEC member and major oil producer, struggles to supply crude oil feedstock to a new refinery, while countries like India—without domestic oil production—maintain massive refining operations without shortages.
Systemic Failures and Substandard Imports
Emmanuel expressed frustration with NNPC’s continued importation of substandard petrol into Nigeria, despite its failed turnaround maintenance efforts, which have cost $24 billion over the past two decades. He questioned why NNPC still imports low-quality PMS when the Dangote Refinery is capable of producing premium fuel that meets Nigerian regulatory standards for sulphur content and octane levels.
“There’s no economic justification for importing substandard products when we have a domestic refinery that can meet all of Nigeria’s demand,” he said, adding that the ex-refinery price from Dangote is cheaper than the landing cost of imported PMS.
Blame Games and Rising Costs for Nigerians
Emmanuel also criticised the ongoing blame game, noting that the rising fuel prices have severely affected Nigerians, disrupting transportation, increasing business costs, and making it harder for families to make ends meet. He called for greater transparency and accountability from the NNPC, questioning why the promised crude oil supplies for Dangote Refinery in October have not yet materialised, despite the capacity to meet these needs.
Emmanuel condemned the NNPC’s practices, urging the corporation to stop importing substandard products and fully support the domestic refining capabilities of Dangote Refinery to stabilise the market and provide Nigerians with affordable fuel.
