July 22, (THEWILL) – President of the Dangote Group, Aliko Dangote, says he is ready to sell the Dangote Refinery to the Nigerian National Petroleum Corporation Limited (NNPCL) to address allegations of monopoly in the industry.
The $19bn 650,000 barrel-per-day refinery was envisioned to reduce Nigeria’s reliance on imported fuel and save up to 30% of the country’s foreign exchange spent on imports.
Set for its first roll-out of petrol in August, the refinery has faced significant challenges, including supply chain issues and regulatory disputes.
The Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, in a video interview with State House correspondents, said the Dangote refinery had requested the regulator to stop giving import licences to other marketers to be the only fuel supplier in Nigeria.
“We cannot rely heavily on one refinery to feed the nation, because Dangote is requesting that we should suspend or stop importation of all petroleum products, especially AGO and direct all marketers to the refinery. That is not good for the nation in terms of energy security. And that is not good for the market because of monopoly,” said Ahmed.
But speaking in an exclusive interview with Premium Times on Sunday, Dangote discussed his openness to the sale as a means to resolve these accusations and improve the country’s fuel crisis.
“Let them (NNPCL) buy me out and run the refinery the best way they can. They have labelled me a monopolist. That’s an incorrect and unfair allegation, but it’s OK. If they buy me out, at least, their so-called monopolist would be out of the way.
“We have been facing a fuel crisis since the 70s. This refinery can help in resolving the problem but it does appear some people are uncomfortable that I am in the picture. So, I am ready to let go, let the NNPC buy me out and run the refinery.
“As you probably know, I am 67 years old. In less than three years, I will be 70. I need very little to live the rest of my life. I can’t take the refinery or any other property or asset to my grave. Everything I do is in the interest of my country.
“Four years ago, one of my very wealthy friends began to invest his money abroad. I disagreed with him and urged him to rethink his actions in the interest of his country. He blamed his action on policy inconsistencies and shenanigans of interest groups. That friend has been taunting me in the past few days, saying he warned me and that he has been proven right,” he said.
Earlier, Ahmed had alleged that diesel from Dangote’s plant contained high levels of sulphur, harmful to engines and the environment.
In response, Dangote invited members of the House of Representatives to tour the refinery and witness lab tests comparing the sulphur content of its diesel with imported samples.
THEWILL reports that the tests revealed that Dangote’s diesel had a sulphur content of 87.6 ppm, significantly lower than the imported samples, which had levels exceeding 1800 ppm and 2000 ppm.
While lower sulphur content attests to a better quality of diesel, high sulphur levels cause damage to engines and vehicle components.
