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Dangote Refinery Faces Accusations of Creating Monopoly as Oil Marketers Deny Allegations
Dangote Refinery Faces Accusations of Creating Monopoly as Oil Marketers Deny Allegations....KINDLY READ THE FULL STORY HERE▶
A recent controversy has erupted between Dangote Industries and the Depot and Petroleum Products Marketer’s Association of Nigeria (DAPPMAN), after claims by Dangote’s Vice President, Devakumar Edwin, accused the group of reporting the refinery’s low-priced diesel to President Bola Tinubu. According to Edwin, the oil marketers were displeased with the refinery’s price cuts, as they allegedly hurt their businesses.
Allegations Against DAPPMAN
During a recent Nairametrics space session on X, Edwin revealed that oil marketers had reported Dangote Refinery to President Tinubu, arguing that the refinery’s low diesel prices negatively impacted their businesses. He noted that local marketers had stopped purchasing diesel and aviation fuel from Dangote, leading to a significant drop in sales, with the refinery selling just 29 tankers of diesel per day.
The low local patronage, Edwin explained, forced the refinery to export most of its diesel and aviation fuel. Diesel prices at Dangote Refinery had dropped significantly from N1,200 to N900 per litre, a move the marketers reportedly described as counterproductive to their business models.
DAPPMAN Responds to Accusations
Despite these claims, DAPPMAN has strongly denied the accusations. The association’s Executive Secretary, Olufemi Adewole, stated that the marketers never approached President Tinubu with such a complaint. Adewole’s letter to Senate President Godswill Akpabio, dated July 4, 2024, provided insight into the real concerns raised by DAPPMAN, which included maintaining fair competition within Nigeria’s downstream petroleum industry.
The letter titled, “An Urgent Call for the Sustenance of Deregulation and Free Market in the Downstream Petroleum Industry in Strict Compliance with the Petroleum Industry Act 2021,” outlined the association’s belief that monopolies in the industry, particularly in diesel supply, could harm not just the marketers but the broader economy.
Concerns Over Dangote’s Market Influence
DAPPMAN’s letter also highlighted a potential monopoly by Dangote Refinery, warning that allowing the refinery to be the sole supplier of Automotive Gas Oil (AGO) would restrict healthy competition. They stressed that other Nigerian entrepreneurs had invested over N3 trillion in the downstream sector and should not be forced out of business by Dangote’s dominance.
A significant point raised in the letter was the quality of the refinery’s diesel. The association claimed that Dangote’s AGO has a sulphur content exceeding 700 parts per million (ppm), far above the required 50/ppm. This discrepancy, according to DAPPMAN, is detrimental to both marketers and consumers, as the product doesn’t meet international standards. Yet, regulators have restricted marketers to sourcing only from Dangote Refinery, further limiting competition.
Monopoly Concerns and the Need for Policy Review
DAPPMAN expressed concerns over Dangote’s influence across multiple sectors, citing its dominance in industries such as cement, sugar, and salt production. The association argued that if unchecked, the refinery could monopolize the downstream petroleum market, making it difficult for smaller marketers to compete. They also accused Dangote Refinery of offering lower prices to foreign buyers, further disadvantaging local companies.
In response to these challenges, DAPPMAN called on the government to eliminate restrictions that force marketers to source products exclusively from Dangote. They recommended allowing free importation of petroleum products in line with international standards and promoting healthy competition until Nigeria’s other refineries, such as those in Port Harcourt and Warri, are fully rehabilitated.
In response to ongoing bandit attacks, the Nigerian military has reportedly taken full control of security operations in Alkaleri Local Government Area of Bauchi State.....KINDLY READ THE FULL STORY HERE▶
The army stated that criminal elements would find no safe haven in the area.
This move follows an appeal by Governor Bala Mohammed to the Federal Government for urgent intervention after armed bandits invaded communities in Alkaleri LGA.
On Tuesday, the governor received Major General Eyitayo Foluso Oyinlola, General Officer Commanding (GOC) of the 3rd Division of the Nigerian Army, at the Government House in Bauchi.
The GOC explained that his visit was in line with directives from the Chief of Defence Staff to take direct supervision of military operations in Alkaleri following recent security breaches.
He added that the deployment of additional troops aimed to restore lasting peace to the affected communities.
Assuring the governor of a robust military response, the GOC said proactive and coordinated strategies were being employed to eliminate criminal elements and prevent further attacks. Both kinetic and non-kinetic measures are reportedly in place to restore normalcy.
According to him, troops have intensified clearance operations, strengthened surveillance at key flashpoints, and enhanced collaboration with other security agencies to deter future incursions.
He also noted that intelligence-led operations are ongoing to dismantle criminal hideouts and disrupt the movements of armed groups, with additional logistics and manpower deployed to maintain a sustained security presence in Alkaleri and surrounding communities.
Public affairs analyst and activist, Blessing Akinlosotu, has called on the Nigerian Communications Commission (NCC) and the Nigerian Broadcasting Commission (NBC) to monitor social media content creators more closely to prevent abuse.....KINDLY READ THE FULL STORY HERE▶
Akinlosotu made the appeal in a statement on Tuesday, responding to the controversy involving President Bola Tinubu’s son, Seyi Tinubu, social commentator Martins Otse, aka VeryDarkMan (VDM), and content creator Mitchel Mukoro, known as King Mitchy.
Reports indicated that VDM alleged Seyi Tinubu and King Mitchy threatened his life over comments about a ₦100 million donation. Seyi Tinubu, however, dismissed the claim in a detailed statement over the weekend. The situation escalated further after reports suggested that King Mitchy attempted to harm herself.
Reacting to the incident, Akinlosotu criticized VDM for involving Seyi Tinubu unnecessarily and condemned King Mitchy for attempting self-harm.
She stressed, “I call on the Nigerian Communications Commission, the Nigerian Broadcasting Commission, and other regulatory bodies to pay closer and more serious attention to content being produced daily by creators across the country. Strong sanctions are needed, and some individuals should be held accountable to serve as a deterrent.”
Enugu State’s All Progressives Congress (APC) has elected Dr. Martin Chukwunweike as Chairman and Hon. Chukwudi Nnadozie as Secretary of a 37-member state executive. The leadership team, which includes 35 other members, emerged unanimously on Tuesday at the party’s state congress held at Okpara Square, Enugu. The APC national panel described the exercise as free, fair, and credible.....KINDLY READ THE FULL STORY HERE▶
Additionally, 15 zonal executives—five for each of the state’s three senatorial zones—were also elected.
Governor Peter Mbah of Enugu State praised party leaders and members for the peaceful and transparent conduct of the congress, while lauding President Bola Tinubu’s economic policies for boosting state revenues and enabling developmental projects in Enugu.
Governor Mbah said, “What we have achieved here demonstrates that we are part of one big family. Enugu State is not only a model of governance but also a model in politics. The merger of parties we achieved is genuine and not just a marriage of convenience.”
He congratulated the new leadership and urged them to continue the work of the Dr. Ben Nwoye-led Caretaker Committee, emphasizing the need to communicate his administration’s reforms and development initiatives to grassroots communities.
Highlighting the impact of President Tinubu’s policies, Mbah said, “The bold initiatives from Mr. President have increased funds for subnational governments. This has made our state transformations possible, including stabilizing the exchange rate, strengthening the naira, and raising foreign reserves to $50 billion for the first time in 13 years.”
On the benefits of APC membership, he added, “Through connecting to the centre, we’ve seen major projects approved, including the concession of Enugu International Airport, the railway extension from Aba, the South East Development Commission, and the high-pressure gas pipeline to unlock Enugu’s energy potential.”
In his acceptance speech, Chukwunweike pledged to work with his team to ensure the re-election of Governor Mbah and President Tinubu. “We will deliver. No governor has completed a tenure successfully in Enugu since 1999, and Governor Mbah will not be an exception, especially with his record and performance,” he stated.
Outgoing Caretaker Committee Chairman, Dr. Ben Nwoye, commended Mbah for uniting former APC and PDP members into one strong party structure. “We chose inclusion over exclusion, dialogue over division, and unity over personal ambition,” he said.
The APC National Deputy Chairman (South), Chief Emma Enukwu, encouraged the new leadership to prove themselves in the upcoming elections, emphasizing that political party leadership is measured by the ability to secure votes and win elections.
The five-member APC panel overseeing the congress, chaired by Hon. Loveth Idisi with Hon. Tobechukwu Okonkwo as secretary, described the exercise as transparent, successful, and credible, praising Mbah for the state’s development and cleanliness.
Other dignitaries present included Speaker of the Enugu State House of Assembly, Hon. Uchenna Ugwu; Senator Osita Ngwu; Hon. Martins Oke; Deputy Governor Barr. Ifeanyi Ossai; Secretary to the State Government, Prof. Chidiebere Onyia; and Chief of Staff Barr. Victor Udeh, among several other current and former political office holders.
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