PIB Would Permit Only Dangote Refinery, NNPC To Import Fuel

Dangote refinery and the Nigeria National Petroleum Corporation will be the only two entites permitted to import petroleum products into Nigeria if the senate version of the Petroleum Industry Bill is passed.

This was revealed in a report by Sahara Reporters.

However, the law makes it impossible for even modular refiners like Walter Smith to import the product, as a clause in the concerned section provides that licenses be given based on the refining record of the permit holder.

By the time the bill becomes law, the Dangote refinery, which has a 650,000-barrel per day refining capacity, would be in operation, making him the only license holder that would be able to import any substantial amount of petrol.

The law also provides for the continuation of the NNPC’s Direct Sale Direct Purchase contract, which experts have questioned for being fraught with inconsistencies.

Having provided for the introduction of a free market in Section 205 a, the Senate version of the PIB goes ahead to contradict this stance in Section 317h.

The first subsection says:

“The Authority shall apply the Backward Integration Policy in the downstream petroleum sector to encourage investment in local refining.”

Backward integration primarily refers to a move by companies to source materials they imported prior locally.

Within the context of this bill, however, the Senate states what it considers as backward integration;

“To support this, license to import any product shortfalls shall be assigned only to companies with active local refining licenses.”

The law further goes ahead to rule out small players.

“Import volume to be allocated between participants based on their respective production in the preceding quarter.”

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Posted: at 12-07-2021 09:47 PM (3 years ago) | Addicted Hero

Why should we be importing petrol instead of fixing Port Harcourt, Warri and Kaduna refineries to be refining the crude oil here at home which will bring down the cost of Kerosene and Petrol. All these politicians need to face firing squad for corruption and gross incompetence.

Posted: at 12-07-2021 11:45 PM (3 years ago) | Upcoming

na wa ooo

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Posted: at 13-07-2021 06:22 AM (3 years ago) | Addicted Hero

All Nigerian loots is in Dangote company
If you loot money and hide under his company you
Are safe .
Dangote is the second president of nigeria

Posted: at 13-07-2021 07:00 PM (3 years ago) | Upcoming