Crude Greedy
In 2021, the NNPC signed a joint deal with the energy company ‘Vitol’ and local Oil Marketing and Trading Company ‘Matrix Energy’ for $1.5 billion. This advance funding was in exchange for 15,000 barrels of crude oil per day for each company for five years.
Many, including oil industry experts, were surprised by the presence of Matrix in the deal. Vitol is one of the biggest international players in the energy sector: it has financial leverage to win the NNPC oil swap deal and a ready international market for the crude it receives.
The selection of Matrix energy as the second winner, however, was odd to watchers. Recent events could be validating those concerns from 2021, as it appears that the well-connected MD of Matrix, Abdulkabir Adisa Aliu, with disclosed links to the head of the NNPC, Mele Kyari, has a game in play.
Going by previous reports, Mr. Abdulkadir had been plugged into the NNPC power circle by the late Mr. Abba Kyari – then Chief of Staff to President Muhammadu Buhari.
By the time the late Mr. Kyari went out of the picture, Matrix energy had become a conduit for wheeling and dealing by the closed, top NNPC network who needed a vehicle like Matrix to drive their schemes.
Sticky situation?
The Dangote refinery is an incredible achievement. Nigeria should be celebrating this success. Are a few individuals out once again out to spoil the party instead?
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What makes this story ironic to the casual looker is the fact that the NNPC has taken a 20% stake in Dangote’s refinery and will pay back this investment with both cash and crude oil. Hence, on the surface, it appears a straightforward matter and in the interest of Nigerians for the refinery to start functioning as early as possible.
But there is a catch: the 5-year crude-for-cash deal Mele Kyari had delivered to Matrix and Vitol will last until 2026.
For Matrix, a minnow in the industry, it needs to continue the importation of refined petroleum into the country and maintain its sale at the current high prices to service the financing it required to corner the Mele-NNPC deal.
In view of this web between Matrix and NNPC, it is not difficult to consider why petrol pump prices must not crash anytime soon – as projected when the new refinery starts to function.
Who is pulling the strings?
In addition to the issues with his refinery, the Lagos headquarters of Mr. Dangote’s businesses were raided this January, by officers of the Economic and Financial Crimes Commission (EFCC). The public reason was the connection with a probe into favourable exchange rates handed out by the country’s former central bank chief Godwin Emefiele.
But events point the compass needle elsewhere – at a grand scheme to choke the refinery operations which is where the bulk of the forex went. Any further delay in the starting of refining is good news to the shadowy powers as hundred percent importation of petrol will continue.
Rumours are flying about who is to blame for this but the idea that Tinubu would have anything to gain from such a crusade is bordering on fantasy.
For starters, do the men who created the NNPC-Matrix deal have the cojones to draft the President himself into their scheme? Perhaps not. The likeliest course of action in this case would be to stick to their tested script – using the powerful men around the Presidency just as they did during the Buhari days.
But Mr. Tinubu is no fool. He knows the people of Nigeria will not look kindly on those who are found to be behind this scheme.
As usual, these individuals close to him are keen to wield the power that their proximity to him affords them. And they don’t care what it costs Nigeria in the process.
Whatever his relationship with Aliko Dangote, Tinubu is well aware that the presence of the richest man in Africa investing in Nigeria during his tenure can only be a positive, both for his Presidency, as well as the country.
And Bola Tinubu is evidently aware of this. At the recent Nigerian Economic Summit in Abuja, he had justifiably praised Dangote for his efforts. “You are doing well. Keep doing the good things you are doing. Keep investing in Nigeria,” he commented.
Thus, Tinubu must not allow his men to cause a scandal of this hue as it will live long in our collective memories.
Those found responsible will have a hard time trying to excuse their actions, because, just like crude oil, this scandal will stick to them and be almost impossible to wash out.
We should get our cheap petrol.
– Public Affairs commentator, Jide Abdulgafar, writes from Ibadan.
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