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Obajana: Committee Asks Kogi Govt. To Claim Accrued Dividends From Inception

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2 years ago

October 8, 2022

Halima Ibrahim

IPMAN: Nigerians Will Smile Once We Begin Lifting Dangote Petrol The National President, Independent Petroleum Marketers Association of Nigeria (IPMAN), yesterday assured that Nigerians have nothing to worry about immediately the association begins to lift premium motor spirit (PMS) directly from the Dangote Refinery. He said with the sale of crude oil to the refinery in naira, Nigerians would be the better for it. Notwithstanding the IPMAN pronouncement, oil marketers, under the aegis of PETROAN (Petroleum Retail Outlets Owners Association of Nigeria), said they’ll go ahead on continuing the importation of fuel into the country. Nonetheless, Maigandi assured that there was no cause for alarm. He spoke with The Nation while reacting to reports that the Nigerian National Petroleum Company (NNPC) Limited, has officially ended its exclusive purchase agreement with Dangote Refinery, thereby opening up the market for other marketers to directly buy petrol from the 650, 000 barrels per day capacity refinery. Although neither NNPCL nor Dangote Refinery has confirmed nor denied report, the development signifies that NNPC will no longer act as the sole off-taker, allowing marketers to negotiate prices directly with Dangote Refinery.. “This is a welcome development for us (IPMAN), “Maigandi said, adding,“if NNPCL can buy directly, then why can’t we buy directly?; this thing about price shouldn’t be a concern. We are buying petrol at over N800 per litre from NNPC. I don’t want to say much about this but let’s see how everything works out. “The sale of crude oil in naira to Dangote Refinery I believe will make the price to be favourable. We, as IPMAN, are ready for business. Nigerians should not panic about the pricing because immediately we start lifting directly from Dangote Refinery given the naira sales regime, they will laugh, it is a promise,” Maigandi assured. According to him, the independent marketers, prior to yesterday, had not been buying Dangote petrol from the NNPCL because the association was awaiting at what price it would be sold to them. “All the while we haven’t been buying (Dangote petrol) directly from the NNPCL till now because we were still awaiting how they would sell the product from Dangote Refinery to us; so anyhow they want to sell to us is fine, but we prefer taking it directly from Dangote Refinery, that is the best option for us,” he said. The Chief Executive Officer, Center for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, however noted that there is need for more clarification from the NNPCL because it is glaring that as a matter of state policy, there is still some measure of subsidy in the current PMS pricing. This, he argued, was what created a situation where it was only the NNPCL that was buying petrol from Dangote Refinery ab initio and selling to other marketers at a rate that was marginally subsidized. According to Yusuf, it is important to now clarify whether government has now taken a decision to do away with subsidy and expose the citizens and marketers to the full elements of market forces. He argued that Dangote Refinery is a private business entity that obtained loans for its business and has to recoup and repay its creditors. Therefore, he further explained, if all marketers buy directly from Dangote, it means subsidy has been completely removed because it would be sold at market price. The CPPE boss also noted that with the recent policy of crude sale in naira to the refinery, it may be possible for the Dangote refinery to now sell to marketers directly at the same price NNPCL may have been selling to them. “If this can accommodate preserving the price NNPCL was selling to marketers, that will make up for the subsidy that had existed before and that will be great for all,” Yusuf said. Notwithstanding, he made it known that there is a need for policy direction on this development so that there is no confusion that may cause another round of petrol scarcity and create another confusion. “It is important to note that this is not a time to embark on a policy that will further increase the cost of goods and services because the citizens are already over stretched, businesses are suffering inflation is very high. “So from a social perspective, it is not a good policy decision to completely deregulate the prices of petrol at this time because of what Nigerians are going through. NNPC needs to speak out because the more they keep quiet then the more they create room for all manner of innuendos which could also create a lot confusion. It is advisable that government should sustain the marginal subsidy it is giving on petrol in the interest of the vulnerable in the society,” Yusuf said. Meanwhile, petrol marketers under the aegis of Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) yesterday insisted they are currently negotiating to import 100,000 metric tons of the product monthly. According to the association, depending on the domestic refineries for petrol has crippled their businesses to the extent that only 500 out of over 6,000 retail outlets are still operational. The situation may liquidate their businesses and place them under the receivership of their lenders if they do not seek alternatives to Dangote Petroleum Refinery and Petrochemicals that is interested in the export market and the Nigerian National Petroleum Company Limited (NNPCL) that its Port Harcourt Refinery has failed to commence production at the August target. PETROAN President, Dr. Billing Harry made this known to The Nation. “We are exploring the possibility for us bringing our own product. We are advancing on that. We are trying to arrange to bring 100,000 metric tons per month,” he said, adding that the move is still in the pipeline. He explained that his association is tired of depending on the 650,000barrels per day Dangote plant, whose body language has indicated that the company is more interested in the export market. Aside from that, he said the refinery has kept them guessing for too long without communicating its terms of engagement to them. “That is the only option because we can’t depend on Dangote. Dangote clearly has his mind more focused on the export market,” he added. According to him, there was a speculation that the refinery has planned to sell the product to them directly. He wondered why the company refused to inform the marketers since it has the different associations phone numbers. He urged the refinery to partner directly with PETROAN, which has over 6,000 retail outlets. Harry said “NNPCL, from rumour, we are hearing NNPCL is saying he (Dangote) can deal with us directly. That is not the way to work. We should be able to talk to him (Dangote). We should be able to hear from him. There is no need to say we want to sell to you when you can reach us and we can agree or disagree instantly.” Meanwhile, Harry said it was surprising the marketers were yet to get an official communication about the pricing from the refinery. According to him, it was through the rumour mill the members learnt the refinery would sell petrol at N766 per litre. He said surprisingly, the refinery and NNPCL were yet to agree on one pump price. On how the state-owned NNPCL has dashed the high hope of commencing production from its Port Harcourt Refinery in August, he recalled the members were patriotically waiting for Dangote to produce its fuel but since the product cannot get to them they have to seek alternatives. His words: “PETROAN has been in the forefront of insisting that in-country refining of product should be the order of the day. “If we have a petroleum product that is refined in Nigeria and not being able to reach us in distribution, then we have to find alternative methods. “Port Harcourt Refinery we expected and anticipated that at least August we should have started doing public business, we didn’t see that and we also have not heard any definitive and productive business engagement. So when there is that situation, we have over 6,000 retail outlets, out of which number that is doing business is not up to 500. You can say that is a redundant business and before you know our financial partners will start calling for our retail outlets and therefore cripple us. So, if there is any option we can get we have to get it.” NATION

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Dangote is distorting facts – Govt

The Kogi State Government has again debunked claims by the Dangote Group that Obajana Cement Factory is owned, 100 per cent, by the Conglomerate, insisting that there was no valid acquisition.

The state government also vowed to recover all accrued dividends from profits made over the years by the Dangote Group, including accrued interests on same.

As a first step, the Specialised Technical Committee on the Evaluation of the Legality of the Alleged Acquisition of Obajana Cement Company Plc by Dangote Cement Company Limited has expressly asked the Kogi State Government to cancel the existing seven Certificates of Occupancy.

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This was part of the recommendations contained in the report of the 10-man committee, headed by the Secretary to the State Government, Dr. (Mrs) Folashade Ayoade, and submitted to Governor Yahaya Bello of the state.

Reacting to an official statement by the Dangote Group on Friday, the Commissioner for Information in the state, Kingsley Fanwo, said it was important to make it clear to the general public that the state had all the relevant documents to prove that the purported acquisition of Obajana by Dangote was null and void.

He noted that Kogi State indigenes would not be intimidated into forgoing their birth rights to any individual or institution, no matter how highly placed, adding that Governor Yahaya Bello was committed to his inaugural promise that his administration “shall exist for the sole purpose of serving the superseding interests of the people of Kogi State”.

“We want to assure the good people of Kogi State that, with God on our side, what belongs to the state shall be recovered, including all dividends and interests on profits from inception till date. The Dangote Group is just distorting facts to save its face,” Fanwo said.

The detailed Committee report, which was made public on Thursday, by the SSG, also charged the government to take steps to recover Obajana Cement Company Plc now changed to Dangote Cement Company Plc.

Ayoade had revealed with documents that the purported transfer of Obajana to Dangote Industries Limited, was “invalid, null and void”.

She disclosed in the report that three Certificates of Occupancy for Obajana Cement Company Plc, which were solely owned by the Kogi State Government at the time, were used to obtain a loan of N63 billion by Dangote.

According to her, the Committee, in view of its findings, has therefore recommended that Kogi State should take steps to recover the Obajana Cement Company from the Dangote Group.

Stressing the aberration in the arrangement, the SSG said, “Agreement between Kogi State Government of Nigeria and Dangote Industries Limited, dated 30th July 2002 and supplemental agreement dated 14th February 2003, as contained in Exhibit 71 of the Judicial Commission of Inquiry Report, purporting the transfer of Obajana Cement Company Plc to Dangote Industries Limited, are all invalid, null and void.

“There is no evidence of consideration paid by Dangote Industries Limited to Kogi State Government from the alleged transfer of Obajana Cement Company Plc and no dividend was paid to the state from the profits realised from the inception of Dangote Cement Company Plc to date.

“By the assignment of the three certificates of occupancy, the title in Obajana Cement Company Plc, still vests in Kogi State Government as the sole owner. The three documents were used to obtain a loan of sixty-three billion naira only (63,000,000,000.00) to finance the construction of the cement plant in Obajana.”