President to oil workers: avoid strike that undermines economy
The scarcity was attributed to the effect of the PENGASSAN strike.
Describing the $20 billion privately-owned refinery as a national asset that should be supported to function, President Tinubu said the nation should jealously protect, promote, and preserve the facility in the national interest.
President Tinubu emphasised the importance of industrial harmony in the sensitive sector while declaring open the 31st NESG in Abuja.
The theme of the event was: "The reform imperative: building a prosperous and inclusive Nigeria by 2030."
Present at the summit were the Minister of Budget and Economic Planning, Senator Atiku Bagudu, along with other high-ranking government officials.
The President stated that any threat to the Dangote Refinery, which has a capacity of 650,000 barrels per day, should be regarded as an act of national sabotage.
The conflict between PENGASSAN and the Dangote Refinery raised concerns across the nation regarding a potential fuel shortage, a situation that had been resolved since the refinery began operations.
Ojulari reported that the union strike resulted in a daily loss of 200,000 barrels.
He also expressed regret that the company faced reduced gas output during the conflict.
Ojulari, who provided an update to the President at his private residence in Lagos, indicated that Nigeria is expected to achieve an oil production level of 1.8 million barrels per day by December.
The President affirmed that Nigeria will safeguard every investment, emphasizing that no disruptions should occur at the $20 billion facility.
President Tinubu characterized Alhaji Aliko Dangote, the President of the Dangote Group, as “not merely an individual, but an institution.”
He called on labor unions to practice restraint and pursue peaceful negotiations to resolve industrial matters related to the refinery.
The President elaborated that the refinery, which was funded through a combination of equity, debt, and loans from both local and international banks, must remain operational to fulfill its financial commitments and maintain national economic stability.
He remarked: “The refinery must operate to service the debt. We cannot allow the entire nation to be held hostage due to issues that can be resolved amicably at the negotiation table.”
President Tinubu noted that Dangote’s choice to invest significantly in Nigeria, rather than overseas, reflects a strong belief in the country’s future.
He emphasized: “Had he invested $10 billion in Microsoft, Amazon, or Google, he could potentially be worth $70 to $80 billion today.
“But he chose to invest in Nigeria, and we owe it to future generations to promote, preserve, and protect the interests of this very Nigerian.”
The President emphasized the need for "caution, introspection, and accountability from all organized and independent private sector participants" to ensure industrial harmony and a sustainable investment environment.
He further stated: "This is not about holding the gold medal hostage. Nigeria surpasses PENGASSAN; Nigeria is more significant than any individual among us.
"I am not addressing this as a partisan figure but as a Nigerian seeking solutions to our national issues."
The President called upon the NESG to develop policies aimed at resolving industrial conflicts and preventing future disruptions within the sector.
Addressing wider economic concerns, the President expressed confidence that Nigeria will navigate its current economic difficulties through industrialization, infrastructure enhancement, and human-centered policies.
"As Nigerians, we are not destined for low growth, elevated costs, and diminished trust. We will achieve stability. We will industrialize. We will humanize our economy. We will stabilize prices and currency, and we will industrialize through advancements in power, logistics, and technology."
The President noted that his administration has established pathways for the youth to obtain grants, loans, and equity investments of up to $100,000 to develop their businesses, innovate, and create sustainable livelihoods.
He also revealed a N200 billion intervention fund aimed at assisting micro, small, and medium enterprises (MSMEs) and manufacturers in overcoming structural obstacles and improving competitiveness.
He remarked: "Our expansion of access to digital micro-loans has enhanced financial inclusion, empowered small enterprises, and stimulated productivity at the community level."
Regarding fiscal policy, the President indicated that the recently enacted Tax Reform Act—which introduced the Nigeria Tax Administration Act, the Nigeria Revenue Service Establishment Act, and the Joint Revenue Board Establishment Act—represents a significant recalibration of the nation’s tax framework.
"These reforms will enhance domestic revenue generation, lessen reliance on oil, and streamline compliance," he concluded.
He said: “It was quite unfortunate that the Dangote and PENGASSAN issue led to the strike.
“As you know, whenever critical staff manning key facilities are unavailable, operations are disrupted.
“We actually lost significant production of over 200,000 barrels per day and also experienced deferred gas output, while about 1.2 megawatts of power generation were affected.”
Ojulari commended the Federal Government for swiftly intervening through the Minister of Labour and Employment, Dingyadi, and the National Security Adviser (NSA), Nuhu Ribadu, who brokered peace.
He said: “Everyone was brought to the table, and a communiqué was agreed upon on the way forward. We are very hopeful that all parties will abide by it.”
On the recent gas price spikes, Ojulari attributed the rise to temporary supply chain disruptions during the strike.
He added: “The increase you saw was relatively artificial. For the period of the strike, loading and movement were delayed by about two or three days, and that created a temporary scarcity.
“Some marketers exploited the situation to raise prices. Now that things are back to normal, prices should return to what they were before the strike.”
Ojulari said that Nigeria’s crude oil production would reach 1.8 million barrels per day (bpd) before the end of the year, following months of consistent growth and strategic maintenance interventions across production facilities.
He stated that production reached 1.68 million barrels per day in September—the highest level in approximately five years—while gas output also achieved a record of seven billion cubic feet (BCF) per day.
Ojulari remarked: “With the turnaround maintenance finalized in August and September now resuming operations, we anticipate that by the end of the year, we should be achieving at least 1.8 million barrels per day, assuming all conditions remain favorable.”
He emphasized that this accomplishment is in line with the President’s directive to increase production to a minimum of two million barrels per day by 2027 and three million barrels by 2030 as part of the Renewed Hope energy strategy.
Reforms should yield gains, says Yusuf
Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), who expressed concerns regarding the adverse effects of the labor dispute, stated in a declaration that sensitive investments must be safeguarded.
Yusuf urged the government to establish a policy framework to prevent the unlawful closure of businesses within the nation.
He asserted that a policy aimed at protecting investors is a national economic necessity, adding: “Investors mobilize capital, create employment opportunities, and generate the tax revenues that support government and society.
“Without them, there can be no sustained growth, no job creation, and no national prosperity.
“Nigeria must, therefore, urgently institutionalize a fair, secure, and predictable business environment that safeguards those who take risks to generate wealth.
“This is not about undermining labor unions but about achieving a balance between rights and responsibilities to promote sustainable economic growth, social stability, and national security.”
Protesters urge Tinubu to eliminate saboteurs
In Kaduna, protesters under the banner of ‘Partners for National Economic Progress (PANEP) yesterday called on President Tinubu to put an end to the activities of those attempting to undermine efforts to achieve local refining of petroleum products.
The demonstrators, who gathered at Murtala Mohammed Square prior to marching through the city's main thoroughfares, accused an unidentified oil cartel of obstructing and undermining local refinery projects, especially the Dangote Refinery.
Singing songs of solidarity and holding signs with messages such as "Support Local Refining," "Crush Economic Saboteurs," and "Protect Dangote Refinery," the demonstrators asserted that Nigeria must be freed from economic manipulation.
Their leaders, Comrade Igwe Ude-Umanta and Comrade Dahiru Umar Maishanu, stated that urging the President was essential to rescue Nigeria from a cartel that has prospered through importation and fuel shortages, to the detriment of national progress.
