to the notorious ‘cement Armada’—a scandal from the 1970s, …Wants Him To Prioritize Local Refining
‘Dan Kunle likened the massive importation of petrol and diesel by NNPC and some marketers over the past four months during Nigeria’s oil boom, where hundreds of cement-laden ships flooded the ports, causing years of congestion.’
Energy expert Dan Kunle has warned that the continued importation of petrol and diesel by the Nigerian National Petroleum Corporation (NNPC) Limited and certain marketers, despite the Dangote Petroleum Refinery’s capacity to meet domestic demand, is a disservice to the country.
Recent reports indicate that NNPC, Oil Marketers Spent N5.5tn on Petrol, Diesel Importation in Four Months.
Speaking on a programme on Arise TV on Sunday, Dan Kunle likened the massive importation of petrol and diesel by NNPC and some marketers over the past four months to the notorious ‘cement Armada’—a scandal from the 1970s, during Nigeria’s oil boom, where hundreds of cement-laden ships flooded the ports, causing years of congestion, and national calamity.
Nigerian Cement Armada Scandal of the 70s
The scandal began slowly. Flush with oil money, Nigeria had embarked on a massive programme of public works; rebuilding after a brutal civil war. Domestic cement was in short supply, prompting the country to look for an outside source. In March 1974, the government supply agency requested the import of two million metric tons. The defence ministry, which needed 2.9 million metric tons for its own projects, ordered more than 16 million. The sudden demand came at a cost: Nigeria was paying about $115 for a ton of cement, nearly three times the world price at the time.
The cement came from just about everywhere. Government agencies negotiated contracts for Romanian, Greek, Spanish, and American cement, and cargo ships headed for Lagos, Nigeria’s main port. An oversupply of overpriced cement became the least of the government’s problems as half the world’s supply of the building material diverted towards Nigeria, vastly outstripping the Port of Lagos’s capacity. And the government of Nigeria faced a colourful and embarrassing problem that would ultimately involve gridlocked ports, a murdered businessman, a Romanian Princess, a Czech spy and millions of oil dollars. Together they caused the country untold reputational damage…
Kunle expressed his disappointment that, despite President Bola Tinubu’s directive and the Federal Executive Council’s decision to allocate local crude oil to domestic refineries, relevant government agencies are blatantly disregarding these directives with no consequences.
“I was expecting a transition following the Federal Executive Council’s decision in October 2024 to allocate local crude to domestic refineries, with Dangote Refinery being the key player due to its technical capacity. However, the situation hasn’t changed, and we’re still seeing a massive influx of imported fuel. It’s still a full import Armada, similar to the cement Armada. The level of imports we’re witnessing is unprecedented, raising serious concerns about what’s really going on. Is it an attempt to flood the market, introduce substandard fuel into Nigeria, and possibly frustrate Dangote Refinery? The mistake here is that Dangote Refinery is operational, already refining 550,000 bpd and producing high-quality products. This importation is completely unnecessary. It’s time to urge the president to act and end this petrol import racket once and for all,” he stated.
Kunle emphasised that it defies logic for certain individuals to continue pushing for imports, especially when countries like the United States are protecting domestic industries to boost their own economies. He added that the Dangote Refinery could ensure energy security, something the regulatory authorities have neglected for years.
He called on President Tinubu to demand a transition timetable from the relevant authorities outlining when Nigeria will shift from being an importer of refined products to a net exporter. Stressing that Dangote Refinery is a strategic national asset, Kunle urged the government to remove obstacles to its smooth operation.
“The Dangote Refinery is a national strategic asset. There’s no need for a court case. The federal government should step in. We don’t need a legal battle; the government should ask NMDPRA for a transition timetable to move us from importing petrol to self-sufficiency. If the president stays aloof, it will harm the country. No new investments will come if you treat an investment like Dangote’s as an enemy. The importers are the true enemies,” he said.
Kunle stressed that with Dangote Refinery’s capacity and the reported revival of the Port Harcourt and Warri refineries, Nigeria should be transitioning from reliance on oil imports to becoming a net exporter of refined petroleum products.
