Aliko Dangote, President of the Dangote Group, has expressed his willingness to sell the Dangote Refinery to the Nigerian National Petroleum Corporation Limited (NNPCL). Dangote’s decision comes in response to allegations of monopoly within the industry.
Dangote emphasized that if the NNPCL took control of the refinery, the monopoly accusations would no longer hold. “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,” he stated.
The businessman highlighted Nigeria’s long-standing fuel crisis, dating back to the 1970s, and expressed his belief that the Dangote Refinery could play a crucial role in resolving the issue. However, he noted that some parties appear uncomfortable with his involvement. “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.”
This announcement follows remarks by Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority. Ahmed claimed that the Dangote Refinery had asked the regulator to halt the issuance of import licenses to other marketers, aiming to become the sole fuel supplier in Nigeria. “We cannot rely heavily on one refinery to feed the nation, because 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 that is not good for the market, because of monopoly,” Ahmed stated.
Ahmed further criticized the quality of the refinery’s products, alleging they were inferior compared to imported goods. “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, they are producing between 650 to 1,200ppm. So, in terms of quality, their product is much more inferior to the imported quality.”
Dangote revealed that the difficulties faced by his refinery have validated the concerns of friends and associates who advised caution in investing billions in the Nigerian economy. Reflecting on his age, he stated, “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.”
The Dangote Refinery, which began operations last year after an extended construction period, has a capacity of 650,000 barrels per day. It was established to reduce Nigeria’s dependence on foreign fuel imports and conserve foreign exchange.
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