Opinion
Farooq Kperogi: Conspiracy of price gouging between Dangote and NNPCL
Farooq Kperogi: Conspiracy of price gouging between Dangote and NNPCL
I had said to myself and to people close to me that I would never write again on the untenably rising prices of petrol in Nigeria because when I wrote column after column to presage the unfolding petrol-price-inspired cost-of-living tragedy, scores of people across the Nigerian political divide impassionedly disagreed with me because the presidential candidates to whom they abdicated their brains in 2023 also demonized “petrol subsidies” and promised to remove them.
But the extortionate prices Nigerians are still paying for petrol in spite of the well-justified hopes that the coming on stream of the Dangote Refinery would bring down prices—and the blindingly perplexing and never-ending cascade of blame games, accusations and counter-accusations between the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL)—compelled me to revisit this issue.
There appears to be a well-choreographed conspiracy between the Dangote Refinery and the NNPCL to take advantage of Nigerians by keeping petrol prices unjustifiably high. This is somewhat similar to what we call price gouging in the United States.
Price gouging occurs when businesses calculatedly raise the price of goods, services, or commodities to an excessively high level, especially during a crisis or emergency when demand spikes and supply is limited. In the context of fuel, price gouging is said to occur if a company or companies sharply increase fuel prices in response to supply shortages.
Although price gouging typically happens during natural disasters, pandemics, or situations where essential goods become scarce, it can happen anytime. It is, in essence, the exploitation of consumers’ vulnerabilities during critical times. That’s what I suspect is happening in Nigeria now.
NNPCL is the sole buyer and distributor of fuel from the Dangote Refinery. It controls the supply chain and effectively excludes independent marketers from accessing the refinery’s output. That’s not free-market capitalism; that’s state capitalism. That’s not deregulation; it’s regulated deregulation.
But the Dangote Refinery’s price regime is also puzzling. Oil industry expert Mr. Dan Kunle forwarded to me a WhatsApp message that breaks down the landing cost of petrol per liter, which added up to N1107. I haven’t verified the accuracy of the claim, but I assume that it must have some credibility to deserve being forwarded by Mr. Kunle whose knowledge of the industry I have a deep admiration for.
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The message says “based on publicly available data,” which it admitted “are subject to change and may vary depending on market conditions, exchange rates, and other factors,” Dangote Refinery is exempt from incurring costs related to freight (N86.48), jetty depot (N15.35), storage (N12.58), financing (N34.67), foreign exchange (N23.45), NPA charges (N10.58), NIMASA charges (N5.29), and customs duties (N51.17), and therefore should, by my calculation, charge no more than N518.35 per liter.
So it’s a mystery how Dangote and NNPCL agreed on N766. If Dangote Refinery acquired its crude oil in dollars, did it also cover salaries and operational costs in dollars? Crude oil is just one part of the overall production cost.
What’s more concerning, perhaps, is that ₦766 per liter cost seems to be the expected price even after Dangote begins purchasing crude in naira from the NNPC. How can this be justified, especially when the additional costs associated with exporting crude and importing refined products would no longer apply once Dangote receives domestic crude from October 1st?
Additionally, as my friend Professor Moses Ochonu pointed out during our August 31 “Diaspora Dialogues” show titled “Who Wants to Kill Dangote Refinery and Why,” under existing laws, NNPC is supposed to supply its own refineries with 450,000 barrels per day, which was historically sufficient to meet local demand before those refineries became defunct.
That crude was never meant for export. It only started being exported after the refineries stopped functioning. So, as Professor Ochonu pointed out, why not simply allocate that crude to Dangote Refinery, paying only for the refining process plus a modest commission or profit, and then sell the refined products to Nigerians at more affordable rates?
This approach would involve some level of subsidy, but that’s how the system was intended to function when state-owned refineries were operational. In any case, in spite of the sustained propaganda against subsidies, every serious country on earth dispenses subsidies, including energy subsidies, to its citizens. Nigerians are entitled to a subsidy on a quarter of the country’s crude output, and subsidizing petrol makes sense because of its broad impact on the economy.
Moreover, this method would be far less costly than the inflated and fraudulent subsidies that have been paid for imported fuel over the years.
I am, of course, aware that Nigerians have allowed themselves to be willingly brainwashed into assuming that there is no nexus between “subsidy removal” and petrol price hike. I hope the truth is becoming apparent now.
For example, in my April 29, 2023, column titled “Six Agenda Items for Tinubu’s Success,” I wrote, among other things: “Don’t increase petrol prices by other names. I know that there is now an artfully manufactured consent, particularly among the gilded classes in Nigeria, about the undesirability of ‘fuel subsidy.’
“I don’t care what it’s called, but any policy (call it deregulation, subsidy removal, appropriate pricing, etc.) that results in an arbitrary and unbearable hike in the price of petrol without a corresponding increase in the salaries of workers and an improvement in the living conditions of everyday people will sink Tinubu.
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“No responsible government shies away from subsidizing the production and consumption of essential commodities for its people. I have lived in the United States, the belly of the capitalist beast, for nearly two decades, and I can tell you that governments at both federal and state levels heavily subsidize petrol consumption—in addition to agriculture.”
In response, a Facebook friend who was inebriated with anti-subsidy propaganda retorted in the comment section: “I beg to disagree on your advice of his administration not removing fuel subsidy which has become [a] cesspool of corruption…. I prefer he use resources saved from its removal on foodstuffs, health and educational facilities as well as increase salaries of workers which PMB has commenced to FG workers with the 40% peculiar allowance to its staff with effect from last January and which arrears was paid with April Salary. Other points raised are apt.”
“At this rate,” I replied sarcastically, “I pray petrol price gets to 1,000 naira per liter so that everyone will get a taste of what I’ve been talking about.”
“Speculation, speculation and speculation!” he shot back. “Govt should be encouraged to put the refineries in good shape and encourage more private investors to build more just as Dangote and Ishiaku Rabiu [sic] are doing. All refineries should be supplied crude oil in naira and not buying in international oil prices in American dollars. Market forces would later force the prices down if monopoly is not allowed to fester just as happened when telecommunication was privatised and mtn simcard was 30k, others like Mtel, Glo, etc forced the price down and now costs next to nothing.”
Two weeks ago, I reminded him of our April 29, 2023, conversation and asked if he still stood by his arguments and what he thought about the N1,000 per liter prediction I made, which he had dismissed as “speculation.” I am still awaiting his response as I write this.
Well, Nigerians were flushed with enthusiasm at the prospect of the operation of the Dangote Refinery. They expected it to help reduce fuel prices, but the monopolistic control of NNPCL and the caginess and opacity of Dangote Refinery itself have spawned a jarring disconnect between expectations and reality.
As I have repeatedly pointed out, Nigeria, as an oil-producing country, should not withhold the reasonable expectation that its citizens benefit from lower fuel prices. To suggest otherwise is akin to giving someone a handful of cream while allowing their skin to remain parched — an act of neglect that borders on cruelty. Nigerians could more easily reconcile with elevated petrol prices if their country were not blessed with abundant oil resources.
Denying citizens the fruits of their nation’s wealth is no different from a wealthy parent who starves their own children while justifying the neglect by pointing to the deprivation of their less fortunate neighbors. Such a parent is not only irresponsible but unworthy of the trust and care of their children.
Farooq Kperogi: Conspiracy of price gouging between Dangote and NNPCL
Farooq Kperogi is a renowned columnist and United States-based Professor of Journalism.
Opinion
Ademola Lookman showed Davido and Kemi Badenoch that wisdom is not by age – Omokri
Ademola Lookman showed Davido and Kemi Badenoch that wisdom is not by age – Omokri
Recently, the singer David Adeleke was given a global stage to do whatever he wanted and deliver any message.
Sadly, Mr. Adeleke used the opportunity to speak in an American accent. Not only that, he used that American accent to talk down on Nigeria and tell the world not to invest in Nigeria because, as he put it, Nigeria’s “economy is in shambles”.
Coincidentally, a month after his faux pas, Kemi Badenoch, probably inspired by Davido, used her British accent to talk down Nigeria, calling us “a very poor country” where the police rob citizens.
But the interesting thing about her own case is that the next day, the BBC featured a panel of Conservative Party big shots, and one of them, Albie Amankona, a party chieftain from Chiswick, who is also a celebrity broadcaster, said, and this is a direct quote:
“If you are a Brexiteer, and you are saying we need to be expanding our global trade beyond the European Union, we want to be looking at emerging markets for growth, don’t slag off one of the fastest growing economies in Africa.”
Is it not strange that it took the BBC and a British politician to promote Nigeria as one of the fastest-growing economies in Africa?
And just when we thought it was all bad news, God gave us a breath of fresh air in the youthful Ademola Lookman, who used the global podium granted to him by his winning the 2024 African Footballer of the Year award to promote and project Nigeria and the Lukumi Yoruba language to the world.
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Wisdom is not by age. If not, Ademola Lookman, who is just twenty-seven, will not have displayed greater wisdom than David Adeleke, who is thirty-two, and Kemi Badenoch, at forty-four.
Mr. Lookman proved that the age of Methuselah has nothing to do with the wisdom of Solomon.
And it is not as though other ethnicities with global icons do not also project Nigeria. They do.
Dr. Mrs. Ngozi Okonjo-Iweala spoke Igbo on the podium of the WTO in Geneva. In terms of prestige, she is FAR above Lookman.
My campaign is not for the Lukumi Yoruba alone. It is for all sub-Saharan Black Africans to learn to speak their language and not use ability to speak English or another colonial language as a measure of intelligence.
Besides Lukumi Yoruba and Hausa, every other Nigerian language, including Fulfulde, is gradually dying out.
General Buhari is half Fulani and half Kanuri. Yet, he cannot speak either Fuifulde or Kanuri. But he speaks Hausa and English.
Fact-check me: In 2012, UNESCO declared Igbo an endangered language.
However, the Lukumi Yoruba are to be commended for their affirmative actions to advance their language and culture.
Let me give you an example. All six Governors of the Southwest bear full Lukumi names: Jide Sanwa-Olu, Seyi Makinde, Dapo Abiodun, Ademola Adeleke, Abiodun Oyebanji, and Orighomisan Aiyedatiwa.
No other zone in Nigeria has all its governors bearing ethnic Nigerian names as first and second names. They either bear Arabic or European names as first names or even first and second names.
If we truly want to be the Giant of Africa, we must take affirmative steps to preserve our language and culture so we can have children like Ademola Lookman.
Teach your language to your children before you teach them English. They will learn English at school. Being multilingual is scientifically proven to boost intelligence.
Fact-check me: In the U.S., Latino kids do not speak English until they start school. They learn Spanish as a first language.
Even if you relocate to the UK, the best you can be is British. You can never be English. And if your choice of Japa is the U.S., the highest you can be is an American citizen. You will never become a White Anglo-Saxon Protestant WASP.
Your power lies in balancing ancient and modern, Western and African, English (or other colonial languages) and your native tongue.
That is the way to reverse language erosion, like the Lukumi Yoruba.
Ademola Lookman showed Davido and Kemi Badenoch that wisdom is not by age – Omokri
Opinion
Kemi Badenoch’s Hate for Nigeria – Femi Fani-Kayode
Kemi Badenoch’s Hate for Nigeria – Femi Fani-Kayode
“I find it interesting that everyone defines me as a Nigerian. I identify less with the country than with my specific ethnic group. I have nothing in common with the people from the north of the country, the Boko Haram, where Islamism is. Being Yoruba is my true identity and I refuse to be lumped with the northern people of Nigeria who were our ethnic enemies, all in the name of being called a Nigerian”- @KemiBadenoch.
Dangerous rhetoric
Kemi Badenoch, MP, the leader of the British Conservative Party and Opposition in the @UKParliament, has refused to stop at just denigrating our country but has gone a step further by seeking to divide us on ethnic lines.
She claims that she never regarded herself as being a Nigerian but rather a Yoruba and that she never identified with the people from the Northern part of our country who she collectively describes as being “Boko Haram Islamists” and “terrorists”.
This is dangerous rhetoric coming from an impudent and ignorant foreign leader who knows nothing about our country, who does not know her place and who insists on stirring up a storm that she cannot contain and that may eventually consume her.
It is rather like saying that she identifies more with the English than she does with the Scots and the Welsh whom she regards as nothing more than homicidal and murderous barbarians that once waged war against her ethnic English compatriots!
All this coming from a young lady of colour that is a political leader in a multi-ethnic, multi-religious and multi-cultural country that lays claim to being the epitome of decency and civilisation! What a strange and inexplicable contradiction this is.
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Her intentions are malevolent and insidious and her objective, outside of ridiculing and mocking us, is to divide us and bring us to our knees.
I am constrained to ask, what on earth happened to this creature in her youth and why does she hate Nigeria with such passion?
Did something happen to her when she lived here which she has kept secret?
Kemi Badenoch’s Hate for Nigeria – Femi Fani-Kayode
Opinion
The cockroach called Dele Farotimi (1)
The cockroach called Dele Farotimi (1)
Tunde Odesola
(Published in The PUNCH, on Friday, December 13, 2024)
The official name for cage fight is Mixed Martial Arts. Street fight, known as ‘ìjà ìgboro’ in Yoruba, is the bane of Ibadan people, says the panegyric of Oluyole, the city of brown roofs scattered among seven hills. MMA, I think, is organised street fighting.
But, long before MMA became a global combat sport in 2000, little devils of St Paul Anglican (Primary) School, Idi-Oro, Lagos, and Archbishop Aggey Memorial Secondary School, Mushin, Lagos, engaged in ‘ìjà ìgboro’, the progenitor of Mixed Martial Arts. Retrospectively, I’m guilty of being part of the little devils of both schools.
Because, instead of heeding the ‘blessed are the peacemakers’ injunction in the Holy Scriptures, to ‘inherit the kingdom of God’, what we did as little demons that we were was to add fuel to the embers of hostility smouldering among fellow students.
As soon as you noticed two students in a heated argument, instead of you to sue for peace, the naughty reaction was for you to grab some soil in clenched fists and spread your fists towards the two disputants, daring both pupils to slap one of the outstretched fists: ‘Ení bá lè jà, kó gbon!’
‘Ení bá lè jà, kó gbon!’ was a call to arms. To prove you’re a lionheart ready to fight, you slap the clenched fist open and watch its content pour out to the ground.
So, in a jiffy, you would see friends who were laughing a while ago, engage in a free-for-all instanter. Regrettably, I initiated some of such fights and participated in not a few. You probably can’t grow up in Mushin and be fainthearted.
Taliatu Mudashiru was my friend and classmate in Forms 1 and 2. Occasionally, when I didn’t get dropped off at school by my father, and I had to make it to school on my own, I first trek from our Awoyokun Street residence to Taliatu’s house on Adegboyega Street before both of us would head up to Akinade Ayodeji’s house two blocks away en route to school.
I thought I was stronger than Tali, as we fondly called him, or Pali Tutu (Wet Cardboard) – if the caller was a mischievous classmate – until one day when we disagreed during a break-time chatter involving other classmates.
A peacemaker stepped forward with clenched fists, chanting, ‘K’éyin lè jà, k’émi lé wò’ran, Èsù ta’po si,’ evoking Baba Devil himself. I slapped one of the fists; Tali slapped the other! ‘Ha, Tali ke? I go kill sombodi!’
Toe-to-toe, Tunde rained blows. Tit-for-tat, Tali responded. We upturned desks and seats as the brawl spiralled to the delight of cheering classmates. But it was short-lived as the break-time bell saved the day. We swore at each other but classmates begged us, like peacemakers, to save our punches and wait till after-school hours to throw them.
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After school, excited classmates such as Taliatu Olokodana, Akinade Ayodeji alias Kuruki, Hakeem Adigun alias Slate, Jide Oladimeji alias Agama; Kunle Adeyoju alias Iron Bender, Sunday Pedro Oshokai, Sanmi Okuwobi, Sule Mustapha alias Maito; Olalekan Egungbohun, Kazeem Osuolale alias Oju etc led Tali and me to ‘Ojú Olómo ò to’, an arena so named because no parent or guardian’s eyes ever got to see what happened there.
Only Lukmon Yusuff aka OC, Jide Ajose and Segun Majekodunmi would have separated us if they were around. For his good-naturedness, Jide got the nickname Unreasonable while Segun was called Brother because he belonged to the Deeper Life Church and Yusuff got nicknamed O.C. because of his effectiveness as a football defender.
The ‘Ojú Olómo ò to’ was the playground of a primary school that had closed for the day. Impish classmates sat around the edge of the big field, leaving Tali and I at the centre to unleash the devilry in us.
Tali, bigger and an inch taller, was hoping to use his weight to an advantage, grabbing at me but I knew if he slammed me he would feed me with sand, so I used my fists to keep him off.
We wrestled and boxed and kicked and clawed for God knows how long. There was no referee. There was no timeout. There were only ringside viewers who laughed and cheered every kick and blow and the sight of blood. Tali and I bled all over, spent and gasped for breath.
Then I threw a punch, it caught Tali right in the face, and he first went down in a squat, before flattening out on his back. I should have jumped on him and finished him off, but I was barely breathing. I just left him and I turned away to look for my bag and shoes.
The following day, Tali was looking for me on the assembly ground. He appeared proud of us. He shook hands with me vigorously and we hugged for a long period – like warriors after a pyrrhic victory. He earned my respect, I earned his. Tali probably thought I was a sportsman for not finishing him off when he blanked out, but little did he know that all that was on my mind when he fell was me getting home. I probably would’ve fallen too if the fight had lasted longer.
There are similarities between my fight with Tali and the ongoing fight between one of Nigeria’s heavyweight lawyers, Aare Afe Babalola and human rights activist and lawyer, Mr Dele Farotimi.
I know Nigeria is broken and needs fixing urgently. I know that to fix it, something has to give. I know Nigeria’s coconuts of corruption must be cracked on skulls and the water thereof used as atonement for the nation’s corruption.
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I see many coconuts. I also see the head of Babalola and that of Farotimi. I see other heads, too. But whose skull(s) would crack open the coconuts?
I see a poisonous cockroach encircled by a brood of chickens. Among the chickens is the breed called Supreme. There’s also a breed called Appeal and another breed called High. There’s yet another breed called SANyeri, a name symbolising the breed’s big gowns. The chickens thrust their heads forward, sharply looking right and left, watching intently, communicating in esoteric language. What shall we do to this irritant?
Yet, the cockroach is adamant in the valley of jeopardy, six legs gangling, two antennas roving; person wey wan don die jam person wey wan kill am.
Tali Vs. Tunde. Today, I can’t even remember what caused the disagreement that snowballed into our fight, but I can never forget the pain of the fight. I had thought I would make light work of Tali but I didn’t see his gallantry coming.
Although I’ve never met Baba Babalola, he comes across as a man of commendable philanthropy and frankness. It’s only frankness that could make him stand by the Labour Party and its presidential candidate, Mr Peter Obi, in the 2023 presidential election when the elite of his tribe was queuing behind Asiwaju Bola Tinubu as ‘Shon of the Shoil’.
In the 2023 presidential election, I was neither BATified nor Atikulated just as I wasn’t Obidient. In some articles during the countdown to the election, I called for an overhaul of the 1999 Constitution before the conduct of the general elections, saying none of the presidential candidates would succeed as president if the Constitution wasn’t amended.
I also said there was no ideological difference among the All Progressives Congress, Peoples Democratic Party and Labour Party. If they were different, Nigeria wouldn’t witness six House of Representatives members of the Labour Party defecting to the APC recently, despite LP’s promise of a new Nigeria. While I predict more defections in the coming days, those already defected include Tochukwu Okere (Imo), Daulyop Fom (Plateau), Donatus Matthew (Kaduna), Bassey Akiba (Cross River), Iyawe Esosa (Edo) and Fom Daniel Chollon (Plateau).
In my recommendations, I called for devolution of powers to the states, resource control, independent candidacy and patriotism by the generality of Nigerians for a new order.
And I’ve not repented from my belief that elected Nigerian politicians loot the treasury according to the amount of money available in it, not because one was more decent than the other or one party was better than the other.
This is why I find the anti-corruption campaign of 56-year-old lawyer and human rights activist, Dele Farotimi, assuring though I’m not going to touch the libel stuff just yet.
Although Farotimi is an LP member, his rhetoric resonates with equity, fairness and justice – cornerstones of democracy.
However, there are concave and convex perspectives on the Babalola-Farotimi issue. In secondary school, Physics was intriguing to me, though I found its abstraction intimidating and perplexing. It was in Physics that I learnt about convex and concave lenses. I was taught in secondary school that both lenses are used for correcting short-sightedness and long-sightedness.
Tali died a long time ago. May his soul rest in peace. Baba Afe Babalola is 11 years older than my father who died last March at 84. May the Lord grant Baba Babalola more years in good health, and may he see the end of this war.
To be continued.
Email: [email protected]
Facebook: @Tunde Odesola
X: @Tunde_Odesola
LinkedIn: @Tunde Odesola
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