Chief Olisa Agbakoba, a former president of the Nigerian Bar Association (NBA) on Monday says the Nigerian National Petroleum Company Limited (NNPCL) is not a regulatory commission and thus has no business fixing the price of Premium Motor Spirit, popularly called petrol in Nigeria.

While the NNPCL said it loaded petrol at Dangote Refinery at N898 per litre, the Dangote Refinery described the statement by the NNPCL as misleading and aimed at derailing the progress achieved towards alleviating energy insufficiency and insecurity, which had plagued the country for decades.

Speaking in an interview with TheScrutiny, Agbakoba argued that under the Petroleum Industry Act (PIA), NNPCL is now a private limited company.

According to him, the NNPCL has sidelined and is doing the job of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) which has the primary responsibility of regulating and overseeing the upstream petroleum sector in Nigeria.

“We often overlook the underlying conceptual problems because it is a diagnosis of those problems that will lead us to the answer of the possibilities of free flow of petroleum. In the context of that analysis, one must be prepared to say that the price might not be the issue”.

“There are two things here – price and availability. So, I think the context is to determine what is the legal and regulatory framework relating to the oil and gas industry? The first point is to note that the oil and gas industry by Section 44 of the constitution is a natural resource that belongs to the federation, Nigerians”.

“The other point is that under Section 16 of the constitution, it is for the government to regulate the process by which our natural resources and general economic policies is driven. The problem I have and what is causing all the confusion is the challenge around what exactly is the Petroleum Industry Act (PIA)? The act clearly makes NNPC a private operator but NNPC seems not to be a private operator, it seems to be a regulator. If not, why will NNPC be setting prices?”

“I think the matter will be easier to resolve if we have a clear space for policy makers who are the regulators and a clear space for the private sector actors who are the ones producing fuels like Dangote. There will be no interplay of regulatory and private sector forces”.

“So, why is NNPC setting the price? I don’t think that is the duty of the NNPC. Under PIA, it is recognised that the NNPC is a private limited company. As such, it has been incorporated as a private limited company under the Company and Allied Matters Act (CAMA)”.

“So, if NNPC is a private limited company, why is it still setting prices? Why is it the only one that regulate the total monopoly over crude oil? That is not the job of a private sector actor. So, the NNPC seems to be doing the job of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC)”.

“NNPC is duplicating the work and side-lining the regulatory commission. When they do that, you have the sort of confusion that we are witnessing now.” Agbakoba said.
https://thescrutinyng.com/2024/09/16/nnpcl-a-private-company-has-no-business-fixing-petrol-prices-agbakoba/

Toh

Didn't NNPC purchase fuel from Dangote? If they do, are they not the one who know how much they buy it and how much to give it out to the marketers?

U no go ever get sense

helinues:
Toh

Didn't NNPC purchase fuel from Dangote? If they do, are they not the one who know how much they buy it and how much to give it out to the marketers?

Figger:
U no go ever get sense

Mr over sense, why not dispute what I have written without throwing as usual tantrums

Go and build your own Refinery.

So what Is the work if NUPRC Wastage of tax payer money

eep it up, good

I often wonder at the basic lack of understanding often displayed by some lawyers.

This is a recurring issue with Mr Agbakogba and Mr Falana because they often chook mouth into things outside the law that they don't really understand.

Especially Mr Falana, you see him jumping from one news station to another pontificating on every topic from international economics, to science, monetary and fiscal policies among others, and in most cases, he just misfires, showing very little knowledge of the subject matter. Yet he has convinced himself that he is an expert in everything.

Mr Agbakogba:

1. NNPCL has not set any price. As a buyer, NNPCL approached Dangote refinery, a manufacturer, on a willing buyer, willing seller basis. They negotiated and agreed a price.

ÑNPCL, then announced to potential buyers the price it would sell to them.

How does that constitute 'setting the price of petrol' in Nigeria. Petrol importers are free to sell at any price they like. Is NNPCL forcing them to sell their petrol at a stipulated price?

2. You say crude oil is a natural resource. Yes, but it stopped being a natural resource the moment the country sells to and receives payment from a 3rd party buyer.

The crude that Dangote refinery bought ceased to be a natural resource the moment the government was paid for it. And from that moment, the government can't dictate to Dangote refinery how much he can sell the byproducts of the crude.

So, any suggestion that the government, NUPRC, or NNPCL can dictate price to Dangote refinery because the crude is a natural resource is clearly wrong.

Also, the suggestion that NNPCL is doing the work of or sidelining the NUPRC is not supported by evidence.

As you rightly stated, under the PIA the NUPRC has responsibility to regulate. But in law, regulation does not mean setting prices.

How can NUPRC, a regulator, set the price of petrol between 2 private companies.

So, which regulator sets the price of a trailer-load of indomie between indomie manufacturer and its distributors? None abi.

That's because it is a matter for a buyer and seller to determine the price at which they trade.

It is no different with Dangote refinery and NNPCL.

Ofcourse NNPCL's sole shareholder, ie the government, may/will be having their own discussions with the NNPCL behind the scene to try and get the best price possible from Dangote refinery. That is perfectly legitimate.

As for Mr Agbakogba's question concerning NNPCL role as a sole off taker:

Well, again that is a matter for the seller and the buyer. Infact, Dangote refinery must be happy it will deal with only one buyer instead of thousands with all the associated headache.

It seems NNPCL is also happy with the arrangement. No problem then.

Finally, Mr Agbakogba will know that the concept of sole off taker is common in large utility and commodity transactions of national importance because it has some unique advantages.

That is why most electricity GENCOs in Nigeria have only one or a handful of off takers. For complex revolving transactions involving huge recurring financial transfers, the sole off taker model is often a preferred option.

So NNPCL being a sole off taker is not the strangest or the most controversial thing in the world.

The off taker concept also explains why you and I can't go to Kainji dam to buy our electricity! The operator of the dam would rather sell all its generated power to one or a few Discos.

You submission that NNPCL didn't set the price is debatable

If NNPCL didn't set the price why did NNPCL approached DANGOTE refinery,made it a condition and agreed to be the sole MARKETER?

Why did NNPCL not allow other marketers to buy directly from DANGOTE refinery and make them buy from NNPCL

Why did NNPCL not disclose the price it sells the CRUDE per barrel in NAIRA equivalent to DANGOTE and let see whether it's same rate it sells to international market in dollars,for Nigerians to know whether it's discounted to Dangote.

If NNPCL want to be fair,transparent and neutral,it should have allowed all marketers approach Dangote independently and that creates an equal level playing field

My resolve here is NNPCL has something to hide that's why it announced the Price at which it wants to sell to other marketers while Dangote denied it sold to NNPCL at the price published.at this point the profit margin between the price Dangote sold the products to NNPCL isn't known or disclosed,e.i this is how much Dangote sell to us and this is how we are selling as NNPCL to the public for accountability and transparency

Which also gives a clear indication that NNPCL can claim it still pays subsidy while buying from Dangote refinery at it's acclaimed price when compared to the much higher price in naira of landing cost petrol internationally if imported

quote author=DeLaRue post=132035023]I often wonder at the basic lack of understanding often displayed by some lawyers.

This is a recurring issue with Mr Agbakogba and Mr Falana because they often chook mouth into things outside the law that they don't really understand.

Especially Mr Falana, you see him jumping from one news station to another pontificating on every topic from international economics, to science, monetary and fiscal policies among others, and in most cases, he just misfires, showing very little knowledge of the subject matter. Yet he has convinced himself that he is an expert in everything.

Mr Agbakogba:

1. NNPCL has not set any price. As a buyer, NNPCL approached Dangote refinery, a manufacturer, on a willing buyer, willing seller basis. They negotiated and agreed a price.

ÑNPCL, then announced to potential buyers the price it would sell to them.

How does that constitute 'setting the price of petrol' in Nigeria. Petrol importers are free to sell at any price they like. Is NNPCL forcing them to sell their petrol at a stipulated price?

2. You say crude oil is a natural resource. Yes, but it stopped being a natural resource the moment the country sells to and receives payment from a 3rd party buyer.

The crude that Dangote refinery bought ceased to be a natural resource the moment the government was paid for it. And from that moment, the government can't dictate to Dangote refinery how much he can sell the byproducts of the crude.

So, any suggestion that the government, NUPRC, or NNPCL can dictate price to Dangote refinery because the crude is a natural resource is clearly wrong.

[/quote]

DeLaRue:
I often wonder at the basic lack of understanding often displayed by some lawyers.

This is a recurring issue with Mr Agbakogba and Mr Falana because they often chook mouth into things outside the law that they don't really understand.

Especially Mr Falana, you see him jumping from one news station to another pontificating on every topic from international economics, to science, monetary and fiscal policies among others, and in most cases, he just misfires, showing very little knowledge of the subject matter. Yet he has convinced himself that he is an expert in everything.

Mr Agbakogba:

1. NNPCL has not set any price. As a buyer, NNPCL approached Dangote refinery, a manufacturer, on a willing buyer, willing seller basis. They negotiated and agreed a price.

ÑNPCL, then announced to potential buyers the price it would sell to them.

How does that constitute 'setting the price of petrol' in Nigeria. Petrol importers are free to sell at any price they like. Is NNPCL forcing them to sell their petrol at a stipulated price?

2. You say crude oil is a natural resource. Yes, but it stopped being a natural resource the moment the country sells to and receives payment from a 3rd party buyer.

The crude that Dangote refinery bought ceased to be a natural resource the moment the government was paid for it. And from that moment, the government can't dictate to Dangote refinery how much he can sell the byproducts of the crude.

So, any suggestion that the government, NUPRC, or NNPCL can dictate price to Dangote refinery because the crude is a natural resource is clearly wrong.

If that is the case. Why did NNPCL monopolize PMS from dangote refinery. Why is NNPCL the only off taker of dangote refinery PMS. Why not allow everyone including independent market to also by pms from dangote refinery

helinues:
Toh

Didn't NNPC purchase fuel from Dangote? If they do, are they not the one who know how much they buy it and how much to give it out to the marketers?

how is the related to what Agbakoba is saying

engineerboat:


how is the related to what Agbakoba is saying

Read and comprehend

F117nighthawk:

quote author=DeLaRue post=132035023]I often wonder at the basic lack of understanding often displayed by some lawyers.

This is a recurring issue with Mr Agbakogba and Mr Falana because they often chook mouth into things outside the law that they don't really understand.

Especially Mr Falana, you see him jumping from one news station to another pontificating on every topic from international economics, to science, monetary and fiscal policies among others, and in most cases, he just misfires, showing very little knowledge of the subject matter. Yet he has convinced himself that he is an expert in everything.

Mr Agbakogba:

1. NNPCL has not set any price. As a buyer, NNPCL approached Dangote refinery, a manufacturer, on a willing buyer, willing seller basis. They negotiated and agreed a price.

ÑNPCL, then announced to potential buyers the price it would sell to them.

How does that constitute 'setting the price of petrol' in Nigeria. Petrol importers are free to sell at any price they like. Is NNPCL forcing them to sell their petrol at a stipulated price?

2. You say crude oil is a natural resource. Yes, but it stopped being a natural resource the moment the country sells to and receives payment from a 3rd party buyer.

The crude that Dangote refinery bought ceased to be a natural resource the moment the government was paid for it. And from that moment, the government can't dictate to Dangote refinery how much he can sell the byproducts of the crude.

So, any suggestion that the government, NUPRC, or NNPCL can dictate price to Dangote refinery because the crude is a natural resource is clearly wrong.

Why is NNPC not allowing other private Companies to buy the fuel directly from Dangote

helinues:


Read and comprehend

What stops NNPCL from their own refinery


why must they be the only one to lift petrol from dangote if they got nothing to hide

engineerboat:


What stops NNPCL from their own refinery


why must they be the only one to lift petrol from dangote if they got nothing to hide

Irrelevant questions to the topic of discussion

helinues:


Irrelevant questions to the topic of discussion

Why won't you see it as Irrelevant when it doesn't appeal to your ego

engineerboat:


Why won't you see it as Irrelevant when it doesn't appeal to your ego

I made my comments since yesterday, other NL's have seen it, read it and have no issue with it except you

helinues:


I made my comments since yesterday, other NL's have seen it, read it and have no issue with it except you

Because You're going off point on what Agbakoba Is saying.

In which you're not ready to answer simple question if your ego would allow you to

engineerboat:


Because You're going off point on what Agbakoba Is saying.

In which you're not ready to answer simple question if your ego would allow you to

Didn't NNPC purchase fuel from Dangote? If they do, are they not the one who know how much they buy it and how much to give it out to the marketers?

Gosh

Dem go soon send DSS as usual

helinues:




Gosh

Is NNPCL a regulatory body

Why are other companies not allowed to take petrol just like Diesel

do well to answer those question and stop displaying ego

RIGHT.

helinues:
Toh

Didn't NNPC purchase fuel from Dangote? If they do, are they not the one who know how much they buy it and how much to give it out to the marketers?

How will a private company buy all products from dangote if you have sense you will understand what the senior advocate is saying

idahme:



How will a private company buy all products from dangote if you have sense you will understand what the senior advocate is saying

Go back to this your question and check if an iota of sense dey inside

Is Dangote not selling his products to the foreigners? What's the meaning of buy all?

engineerboat:


Is NNPCL a regulatory body

Why are other companies not allowed to take petrol just like Diesel

do well to answer those question and stop displaying ego

Dangote is a business man. Direct that your question to him . Is he not selling his products to the foreigners?

Exactly. NNPCL is now a private company (Nigerian National Petroleum Company Limited) but it's still behaving as a government-owned and regulatory agency.

idahme:



How will a private company buy all products from dangote if you have sense you will understand what the senior advocate is saying

Because they want to be a monopoly to control the price of the product and subsidy scam

engineerboat:


Why is NNPC not allowing other private Companies to buy the fuel directly from Dangote

F117nighthawk:
Because they want to be a monopoly to control the price of the product and subsidy scam

I want the ego to respond to the post since his ego wouldn't allow him to see reality