In a surprising move, Aliko Dangote, President of Dangote Group, has offered to sell the Dangote Refinery to the Nigerian National Petroleum Corporation Limited (NNPCL). Speaking in an exclusive interview with Premium Times on Sunday, Dangote expressed his willingness to divest from the refinery to address allegations of monopoly within the industry.
Dangote explained that if NNPCL took over the refinery, the accusations of monopolistic practices would be nullified. “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,” he stated.
He further emphasized the potential of the refinery in resolving Nigeria’s long-standing fuel crisis, dating back to the 1970s. “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 added.
This development follows comments made by Farouk Ahmed, Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority. Ahmed claimed that the Dangote Refinery had requested the regulator to stop issuing import licenses to other marketers, aiming to be the sole fuel supplier in Nigeria. “We cannot rely heavily on one refinery to feed the nation… 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 market competition,” Ahmed stated in a video interview.
Ahmed also raised concerns about the quality of the refinery’s products. “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,” he noted.
Dangote acknowledged the challenges faced by his refinery, reflecting on the advice from friends and associates who cautioned him about 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,” he said.
The Dangote Refinery, which began operations last year after a prolonged construction period, has a capacity of 650,000 barrels per day. It aims to reduce Nigeria’s reliance on foreign fuel imports and conserve foreign exchange.
In concluding his offer, Dangote reiterated, “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.”
