Dangote willing “to let go of refinery to let NNPC run it” for him to have peace in his old age
By Jeph Ajobaju, Chief Copy Editor
Aliko Dangote has offered to sell his refinery to the Nigerian National Petroleum Corporation Limited (NNPC) in the face of attacks from government officials protecting their vested interests in the corrupt oil industry, and without Bola Tinubu saying anything to protect a $20 billion facility that is of price to Nigeria and Africa.
Tinubu, who as President doubles as Petroleum Minister, has failed to step up the plate, even with Dangote personally complaining to the global media (Reuters, CNN, local outlets) – and to the hearing of Tinubu – that the 650,000 barrels per day refinery is being sabotaged by elements within and outside Nigeria.
Dangote, the richest man in Africa, has cited his inability to access crude from the NNPC and that international oil companies (OICs) are asking him to pay a price for crude that is higher than the international level.
As if to vindicate Dangote’s complaints, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) last week accused Dangote Refinery of producing products that are inferior to imported ones – without providing evidence to back up the claim.
NMDPRA Executive Officer Farouk Ahmed alleged in an interview with journalists in Abuja, broadcast on TVC (a station owned by Tinubu), that petroleum products from Dangote Refinery, those from Watersmith, Aradel, and other modular refineries, are inferior compared to imported ones.
Dangote Refinery refuted the allegation.
Ahmed also denied reports folks with vested interest in the oil and gas sector are trying to scuttle Dangote Refinery, and dropped another bombshell the facility has not been issued an operational licence by the NMDPRA.
The NMDPRA equally accused Dangote Refinery of being a monopoly in the oil industry.
In all this, Tinubu – who directly supervises the oil industry – has curiously kept silence despite his pledge during the campaign last year he would revamp the industry and ensure refineries, government owned and private ones, like Dangote, all work efficiently for there to be enough fuel products for the domestic market and, for particularly for Dangote Refinery, to export to generate foreign exchange.
However, over the weekend, a thoroughly fed up Dangote disclosed his willingness to sell his refinery to resolve accusations.
“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,” Dangote told Premium Times.
“We have been facing 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, run the refinery.”
Dangote Refinery forced to import crude
Starving Dangote Refinery of crude has led to it having to turn to countries like Brazil and the United States to bridge the gap in supply.
“As you probably know, I am 67 years old, in less than three years, I will be 70,” Dangote reiterated in the interview with Premium Times.
“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, run the refinery. At least the country will have high-quality products and create jobs.”
Dangote said the obstacles his refinery is facing seem to have vindicated friends and associates who counselled him to tread with caution as he pumped billions of dollars into the Nigerian economy.
“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 action 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.”
Importation of dirty fuel
Last month, Devakumar Edwin (Dangote Group Vice President of Oil and Gas), accused the NMDPRA of allowing marketers to import dirty fuel.
Ahmed countered on July 18 that diesel from Dangote Refinery and modular refineries like Waltersmith and Aradel contains high sulphur levels.
A high sulphur content in fuel could be injurious to vehicle engines and is known to be harmful to the environment as it furthers heats up the fast-warming climate.
“The AGO quality in terms of sulphur is the lowest as far as West Africa’s requirement of 50 parts per million (ppm),” Ahmed said.
“Dangote Refinery as well as some major refineries like Waltersmith refinery, produce between 650 ppm to 1,200 ppm. So, in terms of quality, their quality is much more inferior to the imported quality.”
Testing of diesel at the refinery to refute allegations
Dangote refuted the claim at the weekend during a tour of both Dangote Petroleum Refinery and Dangote Fertiliser Limited complex in Lekki, Lagos by members of the House of Representatives, including Speaker Tajudeen Abbas.
The company in a statement explained the lawmakers observed the testing of Automotive Gas Oil (diesel) from two petrol stations alongside Dangote Refinery and praised the company for its significant investments and contributions to Nigeria’s development.
“The Chairman of the House Committee on Downstream, Ikenga Ugochinyere, and Chairman of the House Committee on Midstream, Okojie Odianosen, oversaw the collection of samples from the Mild Hydro Cracking (MHC) unit of Dangote refinery for testing of all the samples,” the statement said.
“Lab tests revealed that Dangote’s diesel had a sulphur content of 87.6 ppm (parts per million), whereas the other two samples showed sulphur levels exceeding 1800 ppm and 2000 ppm respectively.
“Dangote emphasised that these findings debunked claims made by Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Authority, who recently asserted that imported diesel surpasses domestically refined products.
“Ahmed had alleged that Dangote Refinery and other modular refineries like Waltersmith and Aradel produced diesel with sulphur content ranging from 650 to 1200 ppm – a statement criticised by many Nigerians as a tactic to favour imported products over local ones.”
Dangote openly challenged the regulator to compare the quality of refined products from his refinery with those imported, advocating for an impartial assessment to determine what best serves the interests of Nigeria.
But he has announced plans to halt his investment in the steel industry to avoid being accused of monopoly.
“You know, about doing a new business which we announced, that is, steel. Actually, our board has decided that we shouldn’t do the steel because if we do the steel business, we will be called all sorts of names like monopoly. And then also, imports will be encouraged,” Dangote said.
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