Nigerian Government Remains Neutral Amid NNPC and Dangote Refinery Controversy

Nigerian Government Remains Neutral Amid NNPC and Dangote Refinery Controversy

The Nigerian government has distanced itself from the ongoing controversy between the Nigerian National Petroleum Company Limited (NNPC Ltd) and the Dangote Petroleum Refinery, asserting that it is not intervening in the matter.

Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, made this clarification during a press briefing in Abuja on Wednesday.

Onanuga explained that with the deregulation of petrol prices, both NNPC Ltd. and Dangote, as independent entities, are responsible for resolving their disputes.

He stated, “The Premium Motor Spirit (PMS) regime has been deregulated. Dangote is a private company, and NNPC should remember it operates as a limited liability company. The controversy between them is their problem.”

He emphasised that the market dynamics would ultimately benefit consumers. “If NNPC’s prices are too high, the public can turn to the market for more reasonable fuel prices,” he noted.

Further addressing the situation, Onanuga highlighted the government’s commitment to promoting alternative energy sources such as compressed natural gas (CNG).

He mentioned that the government is subsidising conversion costs to encourage vehicle owners and transporters to adopt CNG, offering significant cost savings compared to petrol.

“The goal is to make transportation more affordable,” he said, adding that the government aims for around one million vehicles to operate on CNG.

In recent developments, the Dangote Refinery has started processing petrol, with plans to sell exclusively to NNPC Ltd. However, tensions have arisen over pricing, with claims from both parties leading to confusion and criticism.

The Dangote Refinery described accusations about pricing as “misleading,” while NNPC stated it purchased petrol at N898 per litre. The company expressed its desire for any discounts from the refinery to be fully passed on to consumers.

As discussions continue, the federal government maintains its stance of non-interference, promoting a competitive market environment while addressing the energy needs of the nation.