Shenanigan. This ten-letter word evokes anger especially when it is deployed to retard a person, organization or country. It could be deadly. It is like truck knocking down man. This is exactly what is playing out at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). This agency’s Chief Executive Officer, Farouk Ahmed, fully deploys Shenanigan in its day-to-day activities. This is more pronounced when it comes to regulating importation of petroleum products. It has been ongoing for over two years. At NMDPRA, licenses for the importation of petroleum products are being irresponsibly issued. Ahmed cares less about local refiners. He cares less about Nigeria’s economy. He cares less about the negative impact on Nigeria’s limited forex. Scandalous!
President of Dangote Industries Limited, Aliko Dangote, a major stakeholder in local refining of petroleum products, consistently fires hot shots at Ahmed’s shenanigans at NMDPRA. Dangote resumed this week, with a call for the investigation and prosecution of Ahmed for “economic sabotage and undermining of domestic refining in the country.” Ahmed has been conspiring with international traders and oil importers to frustrate local refining through the continued issuance of import licenses for petroleum products, so says Dangote.
Clearly, the unending issuance of licenses for fuel importation is harming local production and discouraging investment in domestic refining. Traders are influencing regulation and undermining the integrity of the sector. This year alone, import authorizations for billion litres of PMS were issued by NMDPRA, despite the availability of substantial domestic refining capacity. The persistent issuance of import permits weakens the sector. Modular refineries are already struggling under the current policy environment and on the brink of extinction. The downstream petroleum sector is under severe strain from entrenched interests profiting from importation of petroleum products at the expense of national development.
Dangote needs the support of patriotic Nigerians as he battles the powerful interests in the oil sector. It is indeed troubling that African countries continue to import refined products despite long-standing calls for value addition and domestic refining. Dangote is right when he professed that “The volume of imports being allowed into this country is unethical and does a disservice to Nigeria.”
Dangote adds: “I am not calling for his Ahmed’s removal, but for a proper investigation. He should be required to account for his actions and demonstrate that he has not compromised his position to the detriment of Nigerians. What is happening amounts to economic sabotage.”
Ahmed is not only drunk on power. He is also money-drunk. Dangote alleges that Ahmed is living beyond his legitimate means, claiming that four of his children attend secondary schools in Switzerland at a cost of $5 million per annum. He insists that such expenditure raised serious questions about potential conflicts of interest and the integrity of regulatory oversight in the downstream petroleum sector.
Dangote is so sure of this money-drunk aspect of Ahmed. He has his facts, declaring, “The Code of Conduct Bureau (CCB) or any other body deemed appropriate by the government, can investigate the matter. If he denies it, I will not only publish what he paid as tuition in those secondary schools, but I will also take legal steps to compel the schools to disclose the payments made by Farouk.
“I send my own children to secondary schools here in Nigeria. How many Nigerians can afford to pay $5 million for secondary school tuition, not university education? In his (Ahmed) home state of Sokoto, many parents are struggling to pay as little as N10,000 in school fees.”
What I find disturbing about Ahmed’s shenanigans at NMDPRA is that the man he reports to has chosen to remain silent. I am talking about the petroleum minister, who happens to be President Bola Tinubu. NMDPRA is one of the agencies under the petroleum ministry. There is no way Ahmed will continue his reckless issuance of fuel importation licenses without the approval of Tinubu. I guess Ahmed has the backing of the President. Tinubu’s silence is a confirmation of this. Ahmed can’t act without the approval of the President. This is the same President that has been talking about “Nigeria first” policy. We are not supposed to be importing what we can produce, so says Tinubu. Unfortunately, he has been authorizing the importation of petroleum products; the products we have in excess in Nigeria.
Tinubu must immediately halt the importation of petroleum products into this country if he truly loves Nigeria. He must encourage local refineries. This is the only way forward for Nigeria.