The Case For Full Deregulation Of The Downstream Sector Of The Oil Industry Is Clear

TEMITOPE AJAYI 

With Aliko Dangote’s $20b dollars bet on immortality, it is apparent that Dangote Refinery will not sell its petroleum products below cost price.

Now that NNPCL has exited the sole offtaker role and marketers can buy their products directly from Dangote Refinery to sell, it also means that NNPCL and marketers can’t sell below their cost price from the refinery which is currently put at N977 per litre.

For the economy, the gains of Dangote Refinery and local refining of petroleum products are many. It is much more than the received notion that it would lead to cheaper fuel.

On a broader note, local refining guarantees energy security, availability and price stability. Beyond this, it will catalyze industrialisation, boost investment in downstream infrastructure, create thousands of good paying jobs across the value-chain and stabilise exchange rate. Ultimately Nigerians benefit and shared prosperity is enabled.