NUPENG, Let The Oil Flow

The wrangling between the Dangote Refinery and members of Nigeria’s oil workers’ unions has brought to the fore the challenges that entrepreneurs face in their efforts to build credible organisations. It is a challenge that must be tackled swiftly.

The recurring bickering between Dangote Refinery, on one hand and the National Union of Petroleum and Natural Gas Workers and petroleum marketers association on the other over the distribution of refined petroleum products to retailers by Dangote Refinery is, to say the least, unnecessary.

The first point that all the gladiators involved in this dispute must understand is that Dangote is a private investor and, therefore, the Dangote Refinery is a private enterprise. We are now operating a deregulated economy, not one run by arbitrariness. The unions should also know that the days of government-controlled, loss-making refineries are over. What is needed now is cooperation by all parties involved, not confrontation. We advise the unions to consult more before taking further actions.

Dangote’s entry into the oil refining business in Nigeria has changed the narratives in this segment of the industry in favour of ordinary Nigerians. For the first time, for instance, the NNPC is not the one driving the prices of fuel in the country. Nigerians cannot forget in a hurry how NNPC hoisted its inefficiency on a nation with its attendant recurring scarcity and corruption in the industry.

These union members were around when the nation’s four refineries were run down; we did not see protests over that, nor against the importation of fuel. It is, therefore, unfortunate that the only man who summoned the courage to invest his money into this sector is being vilified and antagonised, instead of being supported.

To that extent, it is clear that what is happening now in the industry is a proxy war. It is the beneficiaries of that old system that are fighting the emerging scenario driven by efficiency.

Therefore, a word of caution to the unions! They should be reminded that they were all around when Nigerians experienced recurring shortages of petroleum products amid scandals. How much did they contribute to bringing about the current change in the country?

Now we have a man who has invested his money to solve the perennial problem and, in addition, created jobs for millions of Nigerians.

 In a good business environment, such an investor should be respected and protected by the State. So, the government of the country should not be a disinterested bystander in this matter. It should protect Dangote’s investments. He should not be made to suffer any loss because he chose to invest in solving a national problem. We also call on the federal government to provide a level playing field to the participants in the industry.

The industry regulators need to step in and address the issues at stake. This is a regulatory matter and must not be allowed to degenerate any further. There are laid-down rules that govern activities in the sector. Where are the red lines? Are there infringements, and if so, what are the consequences? The government, through the regulatory agencies supervising the industry, issued a permit for the establishment of a refinery of this size. What did they expect when they issued this licence?

Dangote should not be expected to produce and store that volume of products, given the limited space they must face. Therefore, they must assert their responsibility over the industry they regulate. They should have a firm grip on the dynamics of the market.

We at Daily Trust advise Nigerians to take up the challenge of building more refineries as Dangote has done. The market is open and exists for all potential players to meet the requirements. We also advise against monopoly in the industry, so regulatory agencies must step in to ensure that all the players operate within the limits of the law.

The laws regulating monopolistic tendencies must be applied, but we warn against any form of witch-hunting. The National Assembly- must also step in to ensure that the right things are being done by all parties involved in the disputes. This relates to market reforms; therefore, Nigeria’s experience from the telecom sector can be useful here.

One fact is incontrovertible: Dangote stepped out to salvage the nation’s economy. In doing so, he obviously exposed those behind the sufferings of the masses for decades of unending petrol scarcity in an oil-producing country. He provided relief to all Nigerians, so the government should not sit back and watch some interest groups destroy what he built in the interest of the public.

Dangote is not asking the operators not to operate in the industry, but for his organisation to be allowed to operate in the sector within the ambit of laws.

 Nigerians are interested in the availability of petroleum products, they do not want a return to the dark days of long fuel queues and all stakeholders in the industry owe it a duty to the nation to ensure this.

•Written By Daily Trust Editorial Board