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Marketers fault Dangote’s 500,000-litre fuel delivery threshold

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The Dangote Petroleum Refinery has introduced a minimum purchase requirement of 500,000 litres of petrol for oil marketers wishing to benefit from its free delivery scheme, sparking debates across Nigeria’s downstream petroleum sector.

The refinery confirmed the new condition this week, stating that only marketers who buy half a million litres or more qualify for no-cost transportation of products. At the refinery’s gantry price of N820 per litre, this translates to a minimum outlay of about N410 million, equivalent to at least 11 trucks of 45,000 litres each.

A senior refinery official, who asked not to be named, explained, “Yes, the Minimum Order Quantity for the free delivery is 500,000 litres.”

The requirement has raised concerns among independent petroleum marketers, who argue that the benchmark is too high for most operators to meet. The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, confirmed that members were struggling with the threshold.

“Yes, it is true. We have to buy a minimum of 500,000 litres. That requirement has not been easy to follow,” he said. Ukadike explained that the association was compiling a list of members who could pool resources to meet the refinery’s benchmark.

According to him, without such collaboration, the free delivery scheme could be hijacked by middlemen, leading to profiteering and bureaucracy in the fuel supply chain.

“The current situation would bring back middlemen. We usually just buy one truck before, but now we have to buy 11 trucks. That is why we are encouraging members to group themselves to access products directly from Dangote,” Ukadike stressed.

See also  Only 44% of social benefits reach poor Nigerians – World Bank

Energy analyst Olatide Jeremiah, Chief Executive Officer of Petroleumprice.ng, criticised the requirement, describing it as unrealistic for the majority of retail station owners. “At ₦820 per litre, marketers must raise over ₦400m to qualify. How many operators can afford that? Many will have no choice but to rely on wholesalers,” Jeremiah said.

He argued that the policy could inadvertently strengthen middlemen, undermining the refinery’s goal of reducing costs and providing direct delivery to retailers. “The only way to eliminate middlemen is to allow marketers to load and pay per truck. Requiring 11 trucks per order risks keeping depot operators and wholesalers in business, which is exactly what Dangote wants to avoid,” he warned.

Earlier this month, the Dangote Refinery unveiled a free delivery initiative, backed by 1,000 compressed natural gas-powered trucks, aimed at cutting supply chain costs and ensuring cheaper pump prices for Nigerians.

The refinery, which boasts a capacity of 650,000 barrels per day, is Africa’s largest and began commercial operations last year. Its entry into the market has been hailed as a potential game-changer for Nigeria’s energy landscape, with expectations of improved domestic fuel supply and reduced dependence on imports.

Several major marketers, including Conoil Plc, Eterna Plc, Golden Super, Nepal Energies, Kifayat Global Energy, and Riquest & Gas, have already partnered with the refinery to benefit from the free logistics scheme.

However, the scheme has triggered strong opposition from tanker owners and fuel distributors. The President of the National Association of Road Transport Owners, Yusuf Othman, criticised the initiative, arguing that it undermines existing agreements between his members and fuel buyers.

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“NARTO members own over 30,000 trucks, and we cannot do fuel distribution free of charge. Many of our members took bank facilities to buy trucks based on signed contracts. If Dangote delivers fuel directly for free, those agreements collapse,” Othman lamented.

He also cited provisions of the Petroleum Industry Act (PIA), arguing that the refinery’s direct free delivery violates regulatory guidelines.

Stakeholders now fear that instead of reducing costs, the new threshold could distort the market, leaving small operators sidelined while wholesalers reassert control.

Analysts warn that depot operators and middlemen, who typically thrive on bulk purchases, may continue to dominate distribution. Smaller filling station owners, lacking the resources to buy 11 trucks at once, may find themselves dependent on intermediaries once again.

Jeremiah reinforced this concern, noting that middlemen could easily resell products with additional margins, undermining the refinery’s effort to lower pump prices.

“If nothing changes, the refinery is only encouraging middleman activities, and depot operations will remain viable. That would defeat the original purpose of the free delivery programme,” he said.

While the Dangote Refinery’s initiative was designed to cut costs and reduce pump prices, the implementation has exposed structural weaknesses in Nigeria’s downstream sector.

IPMAN is pushing for collective purchasing to help smaller operators participate, while experts recommend revising the policy to allow per-truck loading. Industry watchers argue that without adjustments, the refinery risks alienating the very marketers it needs to ensure broad distribution nationwide.

For now, the free delivery programme remains under scrutiny, with stakeholders awaiting possible revisions. The debate highlights the delicate balance between economies of scale for the refinery and inclusivity for independent marketers in Nigeria’s evolving fuel supply chain.

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X offers changes to blue checkmarks after $138m EU fine

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Elon Musk’s X has offered to make changes to its blue checkmark for “verified” accounts, a European Commission spokesman said Friday, after the platform received a 120-million-euro ($138 million) fine.

The European Union slapped the fine in December on X for breaking its digital rules, including through the “deceptive design” of its blue checkmark.

“X has submitted remedies in relation to its blue checkmark. The commission will now carefully assess the proposed remedies,” EU spokesman for digital affairs Thomas Regnier said.

He did not provide details about what X had submitted.

X risked periodic financial penalties had it not submitted any remedy.

“We have to value the fact that after a constructive exchange with the company, the company has taken its obligation seriously and has submitted us remedies,” Regnier told reporters in Brussels.

When contacted by AFP, X did not provide comment immediately.

Blue checkmarks, long free of charge at what was previously known as Twitter, were intended to signal the identity of certain users — such as celebrities, journalists and politicians — had been verified in an effort to build trust in the platform.

But after Musk bought the platform, he allowed users to pay to get one.

X in February announced it had filed an appeal with the EU’s top court against the fine, which was the first ever under the bloc’s Digital Services Act (DSA).

But Regnier said the commission still expected X to pay it by Monday, and to provide further remedies on other breaches by April 28.

The fine came under a probe started in December 2023.

See also  Only 44% of social benefits reach poor Nigerians – World Bank

That investigation continues as EU regulators study how X tackles the spread of illegal content and information manipulation.

X has often been in the EU’s sights.

The 27-nation bloc in January began another DSA probe into the company’s AI chatbot Grok’s generation of sexualised deepfake images of women and minors after a global outcry.

AFP

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Akwa Ibom to drive large-scale farming with equipment leasing firm

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Akwa Ibom State Government has said it will soon inaugurate its Agric Equipment Leasing Company as part of efforts to promote large-scale mechanised farming in the state.

Governor Umo Eno disclosed this while fielding questions from Government House correspondents shortly after inspecting the progress of work at the company’s facility located at Ekpri Nsukara in Uyo on Thursday.

In a statement obtained from the Government House Press Unit on Friday, the governor commended the contractor for the progress recorded at the project site.

“There is a lot of improvement in the work done here to get the company kick-started in earnest.

“The contractor has given her word that the project will soon be inaugurated, and I hold her to that,” he said.

Eno explained that the essence of the project is to encourage farmers to embrace large-scale farming in order to boost productivity, increase earnings and ensure food sufficiency in the state.

“The farming season is here again, and we are putting everything in place for this project to function optimally. There are over 25 tractors with tracking devices and two low-bed trucks in readiness for the agriculture programme.

“What we intend to do here is to lease these equipment to our farmers across the state at subsidised rates so that they can utilise it for improved farming productivity.

“These farming equipment range from ploughs to harvesters and other implements that will help improve farming output,” he said.

The governor noted that the initiative forms part of his administration’s strategy to mechanise farming methods in the state in order to achieve large-scale crop production and increase farmers’ profits.

See also  Price Of Rice Reduces In Market

Speaking on the government’s tree-crop revolution programme, Eno assured that the initiative would commence once the rainy season sets in, noting that such crops thrive better during the rainy season.

“The nursery for palm seedlings has already been established, and the necessary enumeration of farmers has been conducted across the state.

“Within the next two weeks, the seedlings will be distributed to farmers for planting across the state,” he added.

The governor urged farmers to take advantage of the various agricultural programmes introduced by the government to enhance large-scale farming output and improve economic growth in the state.

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Forum dismisses claims of N210tn missing in NNPC accounts

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A coalition of professionals under the Ajiyya Solidarity Forum has dismissed allegations that about N210tn is missing from the accounts of the Nigerian National Petroleum Company Limited (NNPC).

Addressing journalists on Thursday, ASF National Coordinator, Usman Hamza, described the claim as “mathematically impossible” and politically motivated.

The group’s position is in response to a recent claim by the Chairman of the Senate Public Accounts Committee, Ahmed Wadada, that the NNPC Limited could not account for about N210tn.
Hamza said such a figure was misleading.

“Senator Wadada’s claim of N210tn ‘unaccounted for’ funds is a mathematical impossibility designed to shock the public,” Hamza said.

He argued that the claim did not align with Nigeria’s fiscal reality, noting that the country’s entire 2024 national budget stood at about N28.7tn.

“To suggest that a single entity ‘lost’ nearly eight times the national budget is an insult to the intelligence of Nigerians,” he added.

The forum also condemned threats of arrest warrants against former officials of NNPCL, including former Chief Financial Officer, Umar Ajiya, describing the move as part of a coordinated campaign of political blackmail.

According to the group, the Senate committee may have misinterpreted financial figures by combining accrued expenses and receivables in a way that falsely suggests missing funds.

“We consider that the committee has erroneously ‘netted’ N103tn in accrued expenses, largely joint venture liabilities, with N107tn in receivables owed to NNPCL. Labelling money owed to a company as ‘missing funds’ is a professional travesty,” Hamza stated.

During the ongoing review of the financial records of Nigerian National Petroleum Company Limited, the Senate Public Accounts Committee, chaired by Wadada, had raised concerns over alleged discrepancies running into trillions of naira.

The ASF maintained that the allegations ignored the broader financial and structural reforms undertaken by the national oil company in recent years.

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Furthermore, Hamza mentioned that the tenure of former CFO Ajiya coincided with the transition of the national oil firm into a commercial entity under the Petroleum Industry Act, a reform that ended decades of opaque financial reporting.

“Mr Ajiya’s tenure saw the transition of NNPC into a commercially driven entity and the publication of the first audited financial statements in 43 years,” the forum stated.

ASF defended the N5.9bn cost incurred during the transition process of NNPC to NNPC Limited, saying it covered complex legal and structural reforms required to transform the former state corporation into a limited liability company.

The forum warned that politicising the Senate’s oversight role could damage Nigeria’s credibility in the eyes of international investors.

“Using the Senate’s hallowed chambers to pursue personal vendettas damages Nigeria’s reputation with international investors,” Hamza said.

The forum further called on the leadership of the Senate to institute an independent ethics investigation into what it described as an alleged demand for bribes linked to the ongoing oversight process.

“We call on the Senate leadership and its Ethics Committee to investigate the alleged bribe demand connected to this oversight exercise,” he said.

He urged lawmakers to stop what he described as the harassment of officials who have already submitted several technical responses to the committee.

“Public accountability should be pursued through a sober forensic review of facts, not through sensational claims and phantom numbers,” he added.

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