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 to SaharaReporters 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 told SaharaReporters 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.

Ekwutosblog 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 told SaharaReporters 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.

Price of Dangote’s fuel higher than other sources, we have to pity Nigerians – IPMAN

The Independent Petroleum Marketers Association of Nigeria, IPMAN, on Friday said that the price of fuel from Dangote Refinery, as of last week, was higher than the price of the product from other sources.

IPMAN said members must go where the price is lower and where they get profit, adding that they have to pity Nigerians.

Yakubu Suleiman, National Assistant Secretary of IPMAN, stated this on Friday while fielding questions on Arise Television’s Morning Show programme.

Suleiman argued that prices of petroleum products are determined by international pricing, insisting that Dangote is supposed to be disclosing the amount he’s going to sell his product.

He said: “Prices are determined by international pricing. Dangote is supposed to be saying like every day, ‘This is the price I’m going to sell this product’.

“But he cannot be able to do that unless he (Dangote) engages the stakeholders. And you cannot just say okay, we must only buy in his own depot.

“IPMAN cannot just sit down and say ‘We will tell our members, all of you go to Dangote Refinery and buy your product and load’. We cannot just do that. This is a deregulated system.

We have to source where products are much cheaper. Then we would inform our members to go and load product in any depot that the product is cheaper.

“If Dangote has a product and is selling N1000, let’s assume, and there are other places that are selling N900. We can’t just say because for the sake we are doing business with Dangote, ‘Okay go and do it’. It’s not profitable to us. We must go where the price is lower; where we get profit. That is it.”

Continuing, the IPMAN scribe added, “We are in a deregulated economy but Dangote is like trying to monopolize the whole issue. Fine. Let us know if there is monopoly in the whole system. But we believe that it’s now deregulation.

“Like last week, Dangote’s price is higher than other places. Because if you can go by the price, the international price, crude has already started coming down.

“If I could remember, as of last week, he gave N995 per litre, and you have to bring your cargo and load. How much will you pay the cargo? How much will be the other charges to your depot? And how much will go to the depot? And we expect independent marketers to go and sell it. Can we go and sell? Look at we have to pity Nigerians.”

CBN charges youths to save for a fulfilled future

The Central Bank of Nigeria (CBN) has charged Nigerian youths to cultivate the culture of saving for a fulfilled future.

The apex bank celebrated World Savings Day, yesterday, October 31, in Abuja.

The Acting Head of Consumer Protection Department of CBN, Mr. Ibrahim Yahaya, told journalists at the event, that CBN was committed to savings awareness creation, as according to him, savings provide the necessary pool of funds for investors to borrow from and grow the economy through productivity and job creation.

He said, “Central Bank of Nigeria today is celebrating the World Savings Day. It is an international event that is celebrated each year and its emphasis is to promote the importance of savings.

“We want to instill the culture of savings among the youth so that right from that age, as they grow up with the discipline and with the encouragement of the parents the children will learn to save for future events that may arise.

“It is very important to save because of eventualities. You know this life is full of a lot of journeys so you need to save in case any issue arises you will be able to have something to fall back on so as to address those eventualities.

“Savings are very important to national economic growth. Savings are part of deposits. It is from these deposits that banks lend and you know, lending drives economic growth.

“So what we have as deposits is what the banks use to lend out especially to the real sectors that drive economic growth.”

Mr. Yahaya encouraged the Nigerian public to continue to save, despite the high rate of inflation.

This comes as Nigerians question the point of saving when their money lose value daily due to inflation.