The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) says allegations made by Aliko Dangote, president of Dangote Group, against the leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), can deter potential foreign investors.
On Monday, Dangote alleged that Farouk Ahmed, NMDPRA’s chief
executive officer (CEO), “paid $5 million” to a Swiss secondary school for his
children’s education, describing the act as “economic sabotage and corruption”.
Releasing details of his allegations, in the newspaper
advert, Dangote listed the four children as Faisal Farouk, Farouk Jr., Ashraf
Farouk, and Farhana Farouk.
In a statement on Tuesday, Billy Gillis-Harry, national
president of PETROAN, said the action could erode confidence in Nigeria’s
regulatory institutions.
He, therefore, called on President Bola Tinubu to urgently
intervene to resolve the ongoing dispute in the downstream petroleum sector.
Gillis-Harry also called on the president to promote
dialogue over confrontation, uphold the provisions of the Petroleum Industry
Act (PIA), ensure fair competition, and restore stability and confidence in the
downstream industry.
He said ongoing allegations and verbal attacks “directed at
the leadership of the Nigerian Midstream and Downstream Petroleum Regulatory
Authority (NMDPRA) by Aliko Dangote, president of Dangote Group, are capable of
discouraging potential foreign investors and eroding confidence in Nigeria’s
regulatory institutions”.
‘PETROAN PASSES VOTE OF CONFIDENCE ON NMDPRA LEADERSHIP’
According to the statement, PETROAN, at its emergency
ordinary national general meeting held on Monday, passed a vote of confidence
on the leadership of the NMDPRA under the leadership of Ahmed.
PETROAN said the decision followed the reforms, strategic
governance, and regulatory clarity introduced by the NMDPRA in the Nigerian
downstream petroleum sector.
“Of serious concern are the negative public statements made
against Nigeria’s national refineries, suggesting that they are unattractive
for investment. PETROAN maintains that sound business ethics discourage running
down another entity’s business, irrespective of competition,” the statement
reads.
“PETROAN strongly condemns the announcement or pronouncement
of petroleum product prices by any individual, corporate body, or agency.”
PETROAN said Nigeria’s four refineries are viable for
acquisition and that the downstream petroleum sector remains business-friendly
and attractive to both local and foreign investors.
Furthermore, the association said the unresolved issues
“involving NUPENG and PENGASSAN in relation to Dangote refinery remain pending
and continue to compound the crisis in the downstream sector”.
PETROAN warned that failure to promptly resolve the ongoing
disputes and tensions could lead to supply chain disruptions, artificial fuel
shortages, job losses, declining investor confidence, regulatory uncertainty,
and unhealthy price manipulation in the sector.
The association further emphasised that only constructive
negotiation and fair commercial engagement are key to attracting importers to
local refineries.
“Such engagement must not be driven by compelling or brutal
price-ambushing strategies, which undermine market confidence and distort fair
competition,” PETROAN said.
“PETROAN believes that the current dirty price war is
already causing collateral damage to all parties involved. Most of the
aggressive price crashes appear designed to frustrate importers and are often
executed below cost.
“Consequently, all parties in the price war may be operating
at a loss in a bid to gain market dominance, a development PETROAN considers
unsustainable and harmful to the long-term stability of the downstream sector.”
The association also asked the Nigerian National Petroleum
Company (NNPC) Limited to hasten the process of engaging credible
private-sector partners for the rehabilitation, management, or co-ownership of
the national refineries.
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