CPPE: Some powerful forces bent on preserving fuel importation in Nigeria

The Centre for the Promotion of Private Enterprise (CPPE) says some powerful forces are bent on preserving fuel importation in Nigeria.

Muda Yusuf, chief executive officer (CEO) of CPPE, spoke on ‘Morning Brief’, an interview programme on Channels Television, on Tuesday.

Yusuf said some individuals who are heavily profiting from the importation of petroleum products are opposed to the transition to local production.

“There are powerful forces bent on preserving the status quo and by the status quo, I mean the continued importation of petroleum products,” Yusuf said.

“Apparently, a number of people are benefiting from that and such people are not really excited about this domestic production, which is the way to go.”

The CPPE CEO emphasised the need for political commitment to drive the transition from import dependency to local production, particularly focusing on petroleum products.

‘NNPC, DANGOTE REFINERY PRICING DRAMATISATION BAD FOR ECONOMY’

Yusuf also frowned on the public exchange between the Dangote refinery and the Nigerian National Petroleum Company  (NNPCL) Limited.

He urged both entities to resolve their differences internally, warning that public disagreements could harm investor confidence and the economy.

“I’m really worried about the dramatisation of the price, the cost that NNPC is buying from Dangote,” he said.

“When did NNPC start to tell us how much they bought petroleum products? They have been importing for ages.

“How many times have they told us, this is where we bought it from, this is how much we bought it. Why is it that it is when we are now buying from domestic sources, you are now giving us all sorts of statistics.

“So you are now giving the impression as if this current wave of pricing pieces is because you are buying from Dangote. That is the impression that has been created.”

Yusuf, however, said the real issue is the burden of petrol subsidy, which is overstretching the NNPC and the government.

“If you want to walk away from the subsidy, you make that announcement. You cannot tell us that what we are buying from Dangote is costlier than what we are importing in terms of landing costs. It is not possible,” he added.

On Sunday, the NNPC started lifting petrol from the Dangote refinery after a protracted period of price negotiations.

The national oil company said the refiner sold the product at N898 per litre.

However, Dangote refinery countered the claim, describing it as “misleading and mischievous”.

Following the dispute, NNPC, on Monday, released the estimated pump price of petrol based on prices set by the Dangote refinery.