Aliko Dangote, President of Dangote Group, has offered to sell the Dangote Refinery to the Nigerian National Petroleum Corporation Limited (NNPCL). In an exclusive interview with Premium Times on Sunday, July 21, 2024, Dangote expressed his willingness to sell the refinery to address allegations of monopoly in the industry. He stated:
“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.”
Dangote highlighted that the refinery, which began operations last year, could help resolve Nigeria’s fuel crisis, which has persisted since the 1970s. However, he noted resistance from certain quarters uncomfortable with his involvement. He remarked:
“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.”
The offer comes amid claims from Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, that the Dangote refinery had requested the regulator to stop issuing import licenses to other marketers to become Nigeria’s sole fuel supplier. Ahmed said in a video interview:
“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 the market because of monopoly.”
Ahmed also alleged that the refinery’s product quality is inferior, stating:
“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 are producing between 650 to 1,200 ppm. So, in terms of quality, their product is much more inferior to the imported quality.”
Dangote acknowledged the challenges faced by his refinery and reiterated his readiness to sell, emphasizing his commitment to Nigeria’s development. He said:
“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. 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.”
The Dangote Refinery, with a capacity of 650,000 barrels per day, aims to reduce Nigeria’s reliance on foreign fuel imports and conserve foreign exchange.
