![\"\"](\"https:\/\/theblogonline.com\/wp-content\/uploads\/2024\/11\/3f13c40c-53b8-4b57-80f4-8c0d1a13ec76-211x300.jpeg\")
<\/p>\n
Insiders privy to recent discussions between Dangote and President Tinubu shared with SaharaReporters that Dangote overstated his storage capacity during their meeting, claiming he held 500 million litres of fuel in reserve.<\/span><\/p>\n \u201cLoading delays are frequent. For vessel purchases, the minimum buy is 15,000 metric tonnes, or around 20 million litres, at N971 per litre,\u201d one source explained. \u201cAdditional costs, including vessel chartering, port fees, and discharge fees to a private depot, amount to about 60 naira per litre, which makes the total landing cost for depot owners N971 plus 60 naira. Private depots aren\u2019t buying due to these high costs.\u201d<\/span><\/p>\n This competitive pricing makes it difficult for private depot owners to compete with Dangote. \u201cFemi Otedola even suggested that private depot owners sell their depots as scrap, highlighting the market\u2019s difficulties,\u201d the source added.<\/span><\/p>\n The source noted that the Independent Petroleum Marketers Association of Nigeria (IPMAN) cannot afford the N990 million required for 1 million litres of PMS.<\/span><\/p>\n \u201cDangote\u2019s aim appears to be selling to the Nigerian National Petroleum Company (NNPC) Limited, which would then distribute to other buyers,\u201d the source continued.<\/span><\/p>\n Reportedly, Dangote urged President Tinubu to mandate NNPC to buy fuel from his refinery. However, Tinubu responded that NNPC would only purchase at fair market prices and advised Dangote to treat NNPC as he would other companies, like Total and 11 PLC.<\/span><\/p>\n When questioned about his fuel reserves, Dangote expressed uncertainty over the current naira-to-dollar rate, indicating he was awaiting guidance from NNPC.<\/span><\/p>\n \u201cNNPC doesn\u2019t want to buy from Dangote because they must balance their costs with profitability, which could increase consumer prices. NNPC wants to avoid burdening consumers with higher prices,\u201d said one source.<\/span><\/p>\n The source added that Dangote\u2019s approach suggests a push for subsidy and monopoly, but President Tinubu\u2019s removal of fuel subsidies has shifted the market dynamics.<\/span><\/p>\n \u201cAt their recent meeting, Dangote falsely claimed to have 500 million litres in storage. When the President questioned his storage strategy, Dangote cited uncertainty about exchange rates and dependence on NNPC for guidance,\u201d the source explained. \u201cThe President noted that a savvy businessman wouldn\u2019t need NNPC\u2019s input to understand exchange rates.\u201d<\/span><\/p>\n According to sources, Dangote also requested the President to fix the naira-to-dollar exchange rate, a request Tinubu declined.<\/span><\/p>\n Representatives from the African Export\u2013Import Bank (Afreximbank) also attended the meeting, with the bank reportedly seeking to become the transaction settlement bank for Dangote Refinery. Sources say Afreximbank President Dr. Benedict Oramah, who is set to retire soon, is motivated to protect his private investment in the refinery.<\/span><\/p>\n \u201cOramah and Zacchs Adedeji of the Federal Inland Revenue Service (FIRS) are exerting pressure on NNPC to grant foreign exchange discounts and subsidies to Dangote, pushing to have these costs absorbed into the federation account,\u201d another source revealed. \u201cNNPC is currently resisting this move.\u201d<\/span><\/p>\n The source added that there are efforts underway to replace NNPC\u2019s management if it does not yield to these demands, with plans to potentially bring in Engineer Rabiu Suleiman from Kano to lead NNPC.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Billionaire industrialist Aliko Dangote is said to have misrepresented his fuel storage capacity to President Bola Ahmed Tinubu, claiming a supply of 500 million litres.<\/p>\n","protected":false},"author":1,"featured_media":20530,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[5887,2753,9337,9338,339,7067,193],"class_list":["post-20527","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-dangote","tag-fuel","tag-fuel-storage","tag-n990-litre","tag-nnpc","tag-subsidy","tag-tinubu"],"_links":{"self":[{"href":"https:\/\/theblogonline.com\/index.php?rest_route=\/wp\/v2\/posts\/20527"}],"collection":[{"href":"https:\/\/theblogonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theblogonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theblogonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/theblogonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20527"}],"version-history":[{"count":1,"href":"https:\/\/theblogonline.com\/index.php?rest_route=\/wp\/v2\/posts\/20527\/revisions"}],"predecessor-version":[{"id":20529,"href":"https:\/\/theblogonline.com\/index.php?rest_route=\/wp\/v2\/posts\/20527\/revisions\/20529"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theblogonline.com\/index.php?rest_route=\/wp\/v2\/media\/20530"}],"wp:attachment":[{"href":"https:\/\/theblogonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20527"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theblogonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20527"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theblogonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}