Dan Kunle: DAPPMAN should’ve acquired NNPC refineries to compete with Dangote refinery

Dan Kunle, a renowned energy expert, says the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) should have acquired the Nigerian National Petroleum Company (NNPC) Limited refineries to compete with Dangote Petroleum Refinery.

Kunle spoke on Tuesday during Arise Television’s ‘Morning Show’.

On September 13, DAPPMAN questioned the quality of the refinery’s products, warning against “monopoly” by the plant.

However, the refinery denied the claims.

Speaking on the issue, Kunle said stakeholders had been engaging with DAPPMAN since the removal of the subsidy and the deregulation of the entire midstream and downstream sector.

The expert added that stakeholders had expected DAPPMAN to mobilise its members as soon as it became clear that the Dangote refinery was coming on stream — either by raising new capital to invest alongside Dangote or by pursuing their own independent investments.

“They would have mobilised capital and negotiated with the federal government to sell the existing government-owned refineries to them and use their money to rehabilitate it and compete with Dangote. They didn’t do that,” he said.

“They now see clearly that the day has broken from darkness. So 12 hours of darkness is over. Light has come, and the light in this case is Dangote refinery.”

Kunle argued that, when weighed against the benefits of exportation, importers are simply interested in dumping products in Nigeria.

“So the game is just over for the local importers. Because if you export everything out and they are importing, it means they are importing inflation to the country while Aliko is exporting competitiveness outside the country,” he said.

“So if all this noise will continue to distract Dangote refinery and distract new potential investors like BUA, who will now become very afraid of going to the sector, it means they will now even reinforce the status of Dangote to be the single player.”

The energy expert said this is because their actions would scare away all other investors, even though the association is not investing.

“So in fact they have become even an enemy of the state. That is where the security agency has to come in,” he said.

Furthermore, Kunle said Dangote refinery was offering Nigeria a “carrot” while DAPPMAN was offering the country a “scorpion,” saying Nigerians will undoubtedly rally behind the refinery.

“The price that DAPPMAN wants to protect is against the citizens of Nigeria. If you take the gantry price from Dangote refinery today and deliver it across the country, you will be saving by not taking the product from the single-port mooring (SPM),” Kunle said.

“Because it will cost N75 a litre if you go via SPM, that is coastal vessels to Apapa, Warri, Port Harcourt, and Calabar. It means that N75, you and I will pay it.

“Then the demurrage for importing is about $1 billion per year.”

However, Kunle said Dangote refinery had ended such expenses.