You can’t use “deregulation” to undermine Nigeria’s economy, refinery warns
By Jeph Ajobaju, Chief Copy Editor
Dangote Refinery has cautioned Pinnacle Oil and Gas (POG) and other oil marketers that the deregulation of the downstream of the oil industry cannot justify importation of substandard fuel products or undermine Nigeria’s national interest.
The refinery made the point in a statement in response to remarks by POG Chief Executive Officer Robert Dickerman on the importation and blending of products, which he framed in the context of a “deregulated commodity market.”
On Sunday, Aliko Dangote accused POG of setting up a plant around his refinery in Lagos to blend and sell substandard products to consumers.
Dickerman refuted the claim yet Dangote Refinery doubled down on the argument that a deregulated market cannot obscure the serious implications of Dickerman’s actions that threaten the integrity of Nigeria’s energy sector and endanger the welfare of citizens.
Dangote Refinery insisted that the health and safety of Nigerians should never be compromised in the pursuit of profit.
“The Dangote Petroleum Refinery and Petrochemicals Company has long been an advocate for deregulation and industrialisation in Nigeria, but our support is rooted in a commitment to the sustainable growth of the country’s economy and the protection of its people from any exploitation,” it said in a statement.
“Unlike Dickerman’s view, deregulation should not be a licence for the importation and distribution of off-spec products or the subversion of national interests.”
The firm said Dickerman as an American knows how his own country protects its industries.
US President Joe Biden recently opposed the sale of US Steel to Japan’s Nippon Steel, stressing the importance of maintaining strong American steel companies supported by American workers – an example of protectionism that prioritises national economic interests over short-term profit.
The US has taken action to restrict the use of Chinese-made cranes in its ports, citing national security concerns.
The US has also imposed a 100 per cent tariff on electric vehicles and a 50 per cent duty on medical equipment imported from China, further demonstrating its commitment to safeguarding domestic industries.
Besides, the US has ramped up efforts to boost its own production of computer chips and medical supplies, driven by national security concerns and the need for economic self-sufficiency.
While in office, former President George W. Bush used anti-dumping laws to impose tariffs on a range of Chinese goods considered to be unfairly priced, the Dangote Refinery recounted.
“It is therefore perplexing that Dickerman, with all his experience in the US market, would advocate for the importation and blending of petroleum products to Nigeria under the claim of deregulation and a free market.
“The fact is that he had deceitfully approached us and pleaded that we extend the pipeline from our refinery to Pinnacle’s tank farms for the purpose of blending our high-quality products with their imported products and selling them to Nigerians.
“We categorically rejected his request to extend our pipeline to their tank farms for such devious purposes because it would be a betrayal of the Nigerian people’s trust. The health and safety of Nigerians cannot – and should not – be compromised for profit.”
Dangote Refinery also expressed concern about the decision by POG to lease its tank farms to a company without any retail outlets in Nigeria, questioning the intent behind it, particularly as the tank farms are located just 500 metres from Dangote Refinery.
“The choice we face is between fostering industrialisation or allowing Nigeria to remain a dumping ground for inferior products while exporting jobs.
“For nearly three decades, cartels and their collaborators have sabotaged efforts to develop Nigeria’s refining capacity, keeping the country dependent on imported products. The time has come to end this cycle of exploitation and ensure that Nigeria’s energy sector works for the benefit of its people.
“At Dangote Petroleum Refinery, we are committed to ensuring that Nigeria becomes self-reliant in petroleum production, and we welcome competition that drives innovation and quality.
“However, we will never allow the continued importation and blending of petroleum products, nor the deliberate destruction of our national economy.
“We believe that a strong, self-sufficient energy sector is vital to Nigeria’s economic growth, and we will continue to advocate for policies and practices that protect our industries and the well-being of all Nigerians.
“We eagerly anticipate the coming on stream of the Kaduna, Warri, and Port Harcourt Refineries before the end of this year, as promised by the Group Chief Executive Officer of NNPCL, Mele Kyari.
“This milestone will not only end all baseless rumours of monopoly but also position Nigeria as a refining hub for petroleum products in Africa.”
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