Presidency, Manufacturers agree on privatisation of Port Harcourt, other Refineries

• As Dangote withdraws suit against petrol import licences amid new import tariff

Director-General, Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, mni, has called for the full privatisation of all government-owned refineries, saying it is evident that the country may never succeed in restoring them to functionality under the present dispensation.

In a statement issued recently, the DG MAN said selling off the refineries would stop the commitment of scarce financial resources to an evidently irredeemable venture.

In the same vein, the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, has declared that the Federal Government is open to selling the refineries of the Nigerian National Petroleum Company Limited (NNPCL).

Ajayi-Kadir, however, commended the recent approval of the 15 per cent import tariff on petrol and diesel, adding that it aligns with the Nigeria First agenda and MAN’s long-standing advocacy for local content development and patronage of Made-in-Nigeria goods.

According to him, this has reassured domestic manufacturers and exemplified the government’s commitment to guaranteeing energy sufficiency and security, as well as improving the overall well-being of Nigerians.

He stressed that it would help promote local value addition, strengthen domestic refining capacity, conserve FX and advance Nigeria’s long-term industrialisation objectives.

The DG MAN also noted that this development would ensure that the Naira-for-crude arrangement that would guarantee effective and reliable supply of crude to local refineries and reduce pressure on scarce FX succeeds.

“It will also attract more investors, including holders of the 30 refinery licences to commit resources in the sector. There is no better path to fixing Nigeria’s economy than protecting local industries, encouraging local patronage, fostering value addition and promoting industrial development anchored on local content,” he added.

He lamented that despite being blessed with enormous oil resources, the country still commits scarce FX in billions of dollars to import refined petroleum, noting that supporting local refining capacity through appropriate policy will improve the Naira’s stability and foster a more favourable macroeconomic environment for investment.

He opined that the tariff will accelerate operational eagerness of domestic refineries, reduce disruptions and stabilise energy supply to industries.

Ajayi-Kadir reiterated that the new tariff would accelerate the country’s journey towards energy sovereignty, industrial competitiveness and sustainable economic growth, all anchored on the strength of Made-in-Nigeria.

He expressed the commitment of manufacturers to the Federal Government’s Nigeria First policy, especially on local content development and homegrown industrialisation,

In a related development, the Federal High Court in Abuja, has dismissed the N100 billion suit filed by Dangote Petroleum Refinery to challenge the issuance of licences for the importation of petroleum products into the country.

Dangote Refinery filed the suit in September last year against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), NNPCL, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited and Matrix Petroleum Services Limited.

In the suit, the refinery sought an order voiding the import licences issued to the NNPCL and the private companies.

However, the judge, Mohammed Umar, dismissed the suit after the Dangote refinery’s lawyer applied for its withdrawal yesterday.

The plaintiff, through its lawyer, C.O. Adegbe, informed the court that it filed the notice for the discontinuation of the suit on July 28.

She told the court that the plaintiff had agreed with the defendants that the matter be struck out.

The discontinuation of the suit came about two weeks after President Bola Tinubu approved a 15 per cent import duty on petrol and diesel.

The President’s approval was contained in a letter with reference no: PRES8197/HAGF/100/71/FIRS/40/88-2/NMDPRA/2, dated October 21. The letter was addressed to the Attorney General of the Federation and Minister of Justice, Federal Inland Revenue Service (FIRS) and the NMDPRA.

Essentially, the tariff would ensure that imported petrol is not cheaper than that of Dangote, which produces virtually all of Nigeria’s local consumption. The implementation of the tariff will commence in approximately a month, following the request by the Chairman of FIRS, Zacch Adedeji, whose memo prompted the presidential approval.

The tariff allows for a 30-day window and adds to the controversy around petrol import and production in Africa’s largest oil producer. The letter, titled ‘Re: introduction of a market-responsive import tariff framework on Premium Motor Spirit (PMS) & Diesel,’ was signed by Damilotun Aderemi, the Private Secretary of the President.