Lagos, Nigeria – September 18, 2024
Joe Ajearo, President of the Nigeria Labour Congress (NLC), has sharply criticized the ongoing dispute between the Nigeria National Petroleum Company Limited (NNPC) and the Dangote Petroleum Refinery, attributing it to alleged government policy reversals and fraudulent practices.
Speaking to journalists at the Murtala Muhammed Airport Terminal II in Lagos on Wednesday, Ajearo condemned what he described as unnecessary and unjust regulatory interference in the operations of the Dangote Refinery. He highlighted his concerns regarding the government’s attempt to dictate the pricing of products from the Dangote Refinery, which he argues undermines the principles of a deregulated economy.
Ajearo pointed out the disparity in cost between locally produced and imported petroleum products, emphasizing that it is unfair to set the same price for locally refined fuel as that for imported fuel, which includes additional costs such as landing fees.
“For a product produced locally without the burden of import costs, it is fraudulent to expect it to be sold at the same price as imported fuel,” Ajearo declared. He criticized the government’s actions as a betrayal of its promise to deregulate the sector, asserting that such policies are inconsistent with the principles of free market competition and choice.
He further questioned the rationale behind regulating the price of Dangote’s products, stating that such actions contravene the expected benefits of deregulation, which should ideally allow private sector entities to set prices based on market dynamics rather than government intervention.
Ajearo’s remarks reflect growing frustration among stakeholders regarding the current regulatory environment in Nigeria’s oil sector. He called on Nigerians to speak out against these policies, urging for a fair and competitive market where both government and private sector players can operate without undue interference.
The dispute between NNPC and the Dangote Refinery has sparked broader debates on the future of Nigeria’s deregulated oil sector and the role of government in managing industry practices.
