Aliko Dangote, the Chairman of Dangote Group, has expressed his willingness to sell the $20 billion Dangote Refinery to Nigerian National Petroleum Corporation (NNPC) Limited.
This revelation was made by Africa’s wealthiest individual during an interview with Premium Times on Sunday, July 21, 2024.
“…I am ready to let go, let the NNPC buy me out, run the refinery,” he said.
“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’s response followed an interview in which NMDPRA’s Chief Executive Officer, Farouk Ahmed, claimed that Dangote was attempting to establish a monopoly in the oil and gas sector, that the products were substandard, and that the 650,000-bpd refinery was still in the pre-commissioning phase, approximately 45 percent complete.
Ahmed further stated that the nation could not afford to rely solely on the Dangote Refinery by halting the import of petroleum products, particularly Automotive Gas Oil and Dual-Purpose Kerosene, DPK.
He said:
“That is not so. Dangote Refinery is still in the pre-commissioning stage. It has not been licensed yet. We haven’t licensed them yet. I think they are about 45 per cent to completion.
“We cannot rely on one refinery to feed the nation, because Dangote is requesting that we suspend or stop imports, especially of AGO and DPK, and direct all marketers to his refinery. That is not good for the nation in terms of energy security, and it is not good for the market because of the monopoly.”
Ahmed said that in terms of quality, Dangote’s current AGO (diesel) suffers from the lowest quality in terms of sulphur content, falling short of West Africa’s requirement of 50 parts per million (PPM).
“Dangote Refinery, as well as some modular refineries like Watersmith Refinery and Aradel Refinery, are producing between 650 and 1,200 PPM. Therefore, in terms of quality, their products are much, much, more inferior to imported ones,” he stated.
Located in the Lekki Free Zone near Lagos, Nigeria, the Dangote Refinery is among the world’s largest oil refineries. Established by the Dangote Group, its goal is to satisfy Nigeria’s internal demand for refined petroleum products and decrease reliance on imported fuel.
The refinery is designed to process 650,000 barrels per day, a capacity that is expected to shift Nigeria’s status from a fuel importer to a net exporter of refined petroleum products.
Initiated in 2016, the construction of the refinery has required intricate engineering and substantial investments. It encompasses a petrochemical plant and a fertilizer plant, positioning it as a major industrial complex in the area.
The influence of the Dangote Refinery is projected to reach beyond the petroleum industry. It is expected to generate thousands of jobs and foster economic development in Nigeria. With the production of excess refined products, the refinery aims to regularize fuel prices and guarantee consistent availability to the domestic market, thus enhancing energy security.
