Aliko Dangote, President of the Dangote Group, has proposed selling the Dangote Refinery to the Nigerian National Petroleum Corporation Limited (NNPCL) to address accusations of monopoly in the industry.
In an exclusive interview with Premium Times on Sunday, Dangote expressed his readiness to sell the refinery, stating that the move would invalidate claims of monopolistic practices.
“Let them (NNPCL) buy me out and run the refinery the best way they can. They have labeled 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,” Dangote said.
This offer follows statements from Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority. Ahmed claimed that the Dangote Refinery requested the regulator to halt the issuance of import licenses to other marketers, aiming to be Nigeria’s sole fuel supplier.
“We cannot rely heavily on one refinery to feed the nation. Dangote is requesting that we 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,” Ahmed stated in a video interview with State House correspondents.
Ahmed also raised concerns about the quality of the refinery’s products, stating, “In terms of quality, currently the AGO quality in terms of sulphur is the lowest as far as the West African requirement of 50 ppm is concerned. Dangote refinery and some modular refineries, like Waltersmith refinery and Aradel refinery, are producing between 650 to 1,200 ppm. So, in terms of quality, their product is much more inferior to the imported quality.”
Dangote acknowledged the challenges his refinery is facing and admitted that friends and associates had cautioned him against investing billions of dollars in the Nigerian economy.
“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. 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. At least the country will have high-quality products and create jobs,” he said.
The Dangote Refinery, which began operations last year after an extended construction period, boasts a capacity of 650,000 barrels per day. The refinery is intended to reduce Nigeria’s dependence on foreign fuel imports and conserve foreign exchange.
