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NNPC Ltd Refutes Claims of Sole Offtaker Status, Clarifies Domestic Market is Open to Competition

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3 months ago

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The Nigerian National Petroleum Company Limited (NNPC Ltd) has responded to a statement issued by the Muslim Rights Concern (MURIC), which claimed that the company’s actions are undermining the Dangote Refinery Limited (DRL) and monopolizing the domestic petroleum market. Specifically, MURIC asserted that NNPC Ltd has become the sole offtaker of products from the Dangote Refinery and that this would prevent the refinery from offering lower fuel prices to the Nigerian market.

In a detailed rebuttal, NNPC Ltd has categorically denied these allegations, clarifying that the company is not the exclusive buyer of products from the Dangote Refinery or any other domestic refinery. The company emphasized that the Nigerian petroleum market operates under a deregulated, competitive framework where market forces determine pricing.

NNPC Ltd stated that the pricing of Premium Motor Spirit (PMS) and other petroleum products from refineries, including the Dangote Refinery, is influenced by global market forces, not by the actions of the NNPC. The recent fluctuations in the pump price of PMS, the statement clarified, are a result of these global dynamics. According to NNPC Ltd, these changes in PMS prices do not hinder the Dangote Refinery or any other domestic refinery from offering lower prices.

If current prices are perceived as high, it presents an ideal opportunity for domestic refineries like the DRL to step in and offer lower-priced alternatives to the Nigerian market,” the NNPC statement read.

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NNPC Ltd further reiterated its commitment to a free market environment, highlighting that any domestic refinery, including DRL, is free to sell its products directly to marketers on a “willing buyer, willing seller” basis. In such a deregulated system, no single entity, including the NNPC, can control the entire market.

“NNPC Ltd has no intention or desire to become the sole distributor for any refinery in a competitive market. The notion of NNPC being the sole offtaker does not arise, as refineries can sell to any marketer,” said Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd.

The statement also addressed concerns regarding lower pricing associated with domestic refining. NNPC Ltd explained that there is no automatic guarantee that domestic refining would result in lower prices for consumers. Global parity pricing still applies, and only if market prices outside Nigeria are higher would NNPC Ltd consider fully offtaking PMS from the Dangote Refinery.

NNPC Ltd also pointed out its significant financial stake in the Dangote Refinery, stating, “The NNPC Ltd cannot undermine a business in which it holds a multi-billion-dollar stake.”

In its closing remarks, NNPC Ltd expressed disappointment over MURIC’s claims, suggesting that the advocacy group should have conducted thorough research before making public statements. “As an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and have the potential to incite ordinary Nigerians against NNPC Ltd,” Soneye said.

NNPC Ltd continues to emphasize its commitment to maintaining transparency and fostering a competitive, deregulated petroleum market that benefits all Nigerians.

 

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Kano State Hosts 8th Annual Audit Forum to Enhance Transparency and Accountability

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10 hours ago

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November 21, 2024

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The 8th Annual Audit Forum, organized by the Office of the Auditor General of Kano State, was held recently, focusing on strengthening transparency and accountability in public financial management. .

Isma’ila Musa, the Auditor General of Kano State, welcomed the participants and highlighted the constitutional and legal mandates that guide the auditing process. “Sections 125(2) of the 1999 Constitution of the Federal Republic of Nigeria (as amended) and 36(i) of the Kano State Audit Law, 2021 (as amended) mandate the Office of the Auditor General to audit the accounts and financial statements of the State Government and all Offices and Courts,” he stated.

Musa expressed immense gratitude to His Excellency, Engineer Abba Kabir Yusuf, the Governor of Kano State, for his support in making the event possible. “It is very important to note that a strengthened fiscal transparency will help build trust in governance,” he emphasized. He added that the Audit Forum is a reform intended to reduce opportunities for corruption and abuse of public resources, thereby increasing the efficiency of public expenditures.

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The Auditor General also acknowledged the contributions of various officials, including the Hon. Commissioner Ministry of Planning and Budget, the Accountant General, the Executive Chairman of Kano Internal Revenue Services, and former Auditors General, among others. “My sincere appreciation to all the invitees here present for honoring our invitation. I wish us a successful 8th Kano State Annual Audit Forum,” Musa concluded.

In his remarks, the Chairman of the House Committee on Public Accounts, Honorable Tukur Fagge, praised the exercise for its potential to enhance resource management and ensure the success of the tasks at hand. “This exercise will enhance resources management and will realize the success of the task,” Fagge stated.

Sarkin Shanon Kano, Shehu Muhammad Dankadai, who served as the royal father of the day, also graced the event, adding to the significance of the occasion.

The forum underscored the commitment of the Kano State Government to upholding transparency and accountability, reflecting the administration’s dedication to effective and efficient service delivery.

 

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Breaking: Former Secretary of Federal Electoral Commission, FEDECO, Ahmadu Kurfi Passes On at 93

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16 hours ago

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November 21, 2024

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Late Alhaji Ahmadu Kurfi

 

A former secretary of the Federal Electoral Commission, Alhaji Ahmadu Kurfi, has passed away.

A family source, Jafar Yakubu, informed NIGERIAN TRACKER about the death of the pioneer secretary of the Federal Electoral Commission, who supervised the 1979 general election.

 

Jafar Yakubu said Alhaji Ahmadu Kurfi died at the age of 93 and his Janaza funeral prayers will take place by 2:30 PM at Kurfi in KATSINA state .

 

Dr. Amadu Kurfi, OFR, was born in 1931. He was a former chairman of the then Marketing Board, former Federal Permanent Secretary of the Federal Ministry of Defence, and the first person to acquire a BSc degree in the whole of Katsina State, at University College London in 1957.

 

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President Tinubu Sacks UNIZIK Vice-Chancellor, Registrar

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1 day ago

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November 20, 2024

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The governing council of the Nnamdi Azikiwe University has been dissolved by President Bola Tinubu.

The president dissolved the council and approved the removal of the institution’s vice-chancellor Bernard Odoh and the university registrar, Rosemary Nwokike.

A statement by Bayo Onanuga, the special adviser to the president on information and strategy said the action by Tinubu follows allegations of procedural violations in the appointment of the Vice-Chancellor.

He also said that the council led by Greg Ozumba Mbadiwe and including five other members—Hafiz Oladejo, Augustine Onyedebelu, Engr. Amioleran Osahon, and Rtd. Gen. Funsho Oyeneyin was accused of bypassing due process to appoint an unqualified candidate, prompting federal intervention.

Onanuga said, “The sacking of the governing council and officials followed reports that the council illegally appointed an unqualified vice-chancellor without following due process.

He added that following the controversial appointment, the Federal Government stepped in to address the rivalry between the university’s Senate and the governing council of the institution.

“The government expressed concern over the council’s apparent disregard for the university’s governing laws in its selection process”, Onanuga added.

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