Financial analyst Tosin Adeoti has accused Aliko Dangote, the Chairman of Dangote Refinery, of using emotional blackmail to manipulate public opinion.

This accusation comes in the wake of Dangote Refinery’s announcement that it will need to export 95-97 percent of its Premium Motor Spirit (petrol) due to low local demand from Nigerian marketers.

Edwin Devakumar, Vice President of Oil and Gas at Dangote Industries Limited, revealed that only 3 to 5 percent of petrol marketers are currently willing to purchase fuel from the refinery.

Adeoti, however, suggests that Dangote’s strategy may be to invoke emotional appeals to garner support and potentially push for regulatory measures similar to those enacted for his other products.

Adeoti challenged Dangote to disclose the price of petrol from his refinery so that it can be compared to the landing cost of imported fuel, which stands at N1,117 per litre.

In a Facebook post, Adeoti argued that if Dangote’s petrol were competitively priced, marketers would be more inclined to purchase it.

He questioned why Dangote’s refinery price remains undisclosed and suggested that if Dangote’s product was genuinely cheaper, marketers would have no reason to reject it.

He further proposed that if Dangote faced resistance from marketers, he should consider establishing his own fuel stations or partnering with existing ones to sell directly to consumers.

According to Adeoti, Dangote’s current approach seems more focused on blaming external factors rather than addressing potential inefficiencies or pricing issues within his refinery.

Adeoti criticized what he perceives as Dangote’s attempt to garner public sympathy by portraying himself as a victim of sabotage.

He argued that such tactics may sway public opinion but do not necessarily align with the best interests of Nigerians, who might be more skeptical if presented with all the relevant facts.

The Nigerian National Petroleum Company Limited (NNPCL) has confirmed ongoing negotiations with Dangote Refinery for the purchase of Premium Motor Spirit (PMS), commonly known as petrol, ahead of the refinery’s planned rollout on Sunday, September 15, 2024.

Olufemi Soneye, the spokesperson for NNPCL, shared this during an interview on Thursday.

His comments were in response to a recent statement made by Devakumar Edwin, Vice President of Dangote Industries Limited, who mentioned that local petrol marketers have been avoiding the purchase of fuel from Dangote Refinery, even though it is being offered at lower prices.

Soneye, however, disagreed with the notion that local marketers would boycott a more affordable product.

He expressed optimism that the lower prices being offered by Dangote Refinery would be attractive to the local market, making a boycott improbable.

“I don’t believe local marketers will boycott PMS with lower prices; that seems unlikely,” he said.

He went on to emphasize that NNPCL is currently engaged in discussions with Dangote Refinery to finalize the pricing of petrol, as the company looks forward to the refinery’s official commencement of PMS supply.

“We are currently negotiating prices with Dangote Refinery. We were informed that it would be available by September 15, so we are waiting for that,” Soneye added.

In a previous update, Adedapo Segun, Executive Vice President of NNPCL’s Downstream sector, had confirmed that NNPCL would indeed be lifting petrol from Dangote Refinery once the product becomes available.

This announcement comes on the heels of an early September statement made by the President of Dangote Group, who officially revealed the long-anticipated launch of the refinery’s petrol output.

The success of these negotiations and the timely supply of petrol from Dangote Refinery could mark a significant shift in the Nigerian fuel market.

This collaboration between NNPCL and the refinery is expected to address local fuel demands more efficiently, potentially bringing down prices and reducing Nigeria’s dependence on imported fuel.

The Central Bank of Nigeria (CBN) has issued a new directive requiring all Payment Service Providers to route transactions from point-of-sale (PoS) terminals, whether at merchant or agent locations, through an authorized Payment Terminal Service Aggregator (PTSA).

This applies to both physical and electronic PoS transactions.

This mandate was announced in a circular released on Thursday, signed by Oladimeji Yisa Taiwo on behalf of the Director of the CBN’s Payments System Management Department.

The apex bank has given Payment Service Providers a 30-day window to fully comply with the revised guidelines for handling PoS transactions.

The CBN explained that the decision aims to improve oversight of electronic transactions throughout Nigeria and decentralize the process of routing PoS transactions.

This move is intended to address concerns about the over-centralization of these transactions under a single entity, ensuring a more secure and efficient payment infrastructure.

The circular stated, “The CBN hereby directs acquirers to route all transactions from PoS terminals at merchant and agent locations, whether on physical or electronic PoS terminals, through any CBN-licensed Payment Terminal Service Aggregator.”

Furthermore, these aggregators are required to process transactions only through payment processors certified by the relevant Payment Scheme and licensed by the CBN, as chosen by the acquirer.

This new directive comes at a time when the Corporate Affairs Commission (CAC) had just concluded its deadline for PoS operators to formalize their businesses, which expired earlier in September 2024.

With this regulatory shift, the CBN seeks to establish clearer accountability in the PoS transaction space.

In recent data from the Nigeria Inter-Bank Settlement System Plc (NIBSS), PoS terminals accounted for 26.37% of Nigeria’s fraud incidents in 2023, highlighting the need for stronger oversight and security measures in this growing sector.

It’s worth noting that the CBN had already licensed NIBSS as a Payment Terminal Service Aggregator back in 2011 to monitor and track electronic transactions across the country.

This latest directive is seen as a reinforcement of the CBN’s commitment to ensuring the integrity and security of Nigeria’s payment systems.

With the increasing reliance on PoS terminals for transactions across the nation, this move is expected to boost trust in electronic payment systems, reducing fraud risks and providing a more decentralized, secure framework for handling transactions.

Payment Service Providers are now working against the clock to comply with the new guidelines within the given timeframe, signaling a significant shift in Nigeria’s payment landscape.