Private Refining of Petroleum in Nigeria, legacy of President Tinubu – TDF

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The Democratic Front (TDF) has said that the commencement of full operation by Dangote Petroleum Refinery would go down in history as a worthy legacy of the President, Bola Ahmed Tinubu.

In a statement signed by its Chairman, Mallam Danjuma Muhammad and Secretary, Chief Wale Adedayo, TDF argued that the pro-business approach of the Tinubu administration was a determining factor in bringing the refinery into the final completion.

The TDF said: “We hail President Bola Ahmed Tinubu for creating the enabling business environment which paved the way for Dangote Refinery to fully begin operations.

“TDF finds this achievement laudable in view of the fact that the concerted efforts by successive administrations to birth the operations of private refineries were not enough to make the Refinery operational until now.

“Even though the price per litre of fuel is still inconsistent with the yearning of the people who had hoped for more comfort, we are confident that it will reduce significantly, when profit-driven competition commences between domestic refineries when they all become fully operational.

“For us, the efforts made by President Tinubu to disentangle the nation from the clutches of fuel subsidy regime which almost crippled the country’s economic growth and prosperity in the last 40 years, aptly underscores his pedigree of selfless and patriotic service to the nation.

“We must understand that Nigeria’s dream for private ownership of Petroleum refineries has over the years been hampered, not by the absence of potentials in the organized private sector, but for lack of political will on the part of previous administrations, particularly governments before 2015, to deploy pro- business policies that will create the enabling environment for a sustainable profit-driven refining business to thrive.

“The President’s enormous knowledge of the capacity and untapped potentials of the Nigerian private sector was largely responsible for his bold decision to dismantle every barrier of protectionism, bureaucracy which enabled the successful commencement of a massive private refining business, with a 100% Nigerian- owned investment as its flagship.

“We believe the President deserves praises for making sure that private refineries in the country do not suffocate under the pressure of foreign exchange by approving the sale of crude oil to them in the local currency.

“The advent of private petroleum refineries under the Tinubu administration will galvanize a change in the existing paradigm between the petroleum market in Africa and the world.

“Already, the 140,000 bpd Grangemouth Refinery in Scotland, the oldest of the six refineries in the United Kingdom, has signalled its intention to close shop by laying off 400 out of 477 workers. Many people believe it is partly a result of Dangote Refinery commencing full operations.

“We believe that as the country with the largest petroleum refining potentials in Africa, Nigeria is presently poised to dominate the continent’s petroleum market exponentially through the windows of opportunities provided by the business-friendly reforms of the Tinubu administration.

“The cumulative benefits of the President’s success in positioning Nigeria as a potential hub of crude oil refining in Africa, can best be appreciated from the magnitude of various petroleum products and chemicals that will meet the demands of both domestic and international energy markets.

“Expectedly, trade surplus will tremendously increase. There would be a higher rate of employment for young Nigerians, and the nation’s Gross Domestic Product (GDP) will soar to the envy of the global economy. This will pave the way for the realization of the much anticipated $1bn economy.”

TDF added that if President Tinubu was thinking of the next election, he would have been reluctant to introduce reforms.

“So we congratulate President Tinubu for finding the courage to toe the difficult path that previous administrations and politicians thinking of the next elections would naturally avoid.

“It takes patriotism and statesmanship to subjugate political ambition to collective national interest, as President Tinubu has done with his forward-looking economic reforms.

“We urge Nigerians to continue to show understanding and perseverance in the face of economic challenges. The current high cost of living is transitional and temporary. The rollout of PMS by Dangote Refinery signifies the end of the difficult transition from the era of unsustainable regulated petroleum market to the sustainable private sector- led production.

“The upcoming competition in the market and the federal government’s decision to invest heavily in Compressed Natural Gas (CNG) will provide alternative energy for transportation that is bound to reduce the high cost of living. And this, we predict, will happen in the next few months,” it added.

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