Africa’s wealthiest man, Aliko Dangote, has announced his willingness to sell his 650,000 barrel-per-day oil refinery to the state-owned energy company, NNPC Limited.
The offer comes amid escalating disputes with key equity partners and regulatory authorities.
“Let them (NNPCL) buy me out and run the refinery the best way they can,” Dangote said in an exclusive interview with PREMIUM TIMES on Sunday.
“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.”
The refinery, which began operations last year after a decade-long construction is intended to reduce Nigeria’s dependence on imported fuel.
However, it has been operating at just over half capacity due to difficulties in sourcing crude oil from international producers and the NNPC.
This shortfall has forced the refinery to seek crude from countries like Brazil and the United States.
“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,” Dangote stated.
“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.”
Dangote also announced his decision to halt plans for investing in Nigeria’s steel industry to avoid further accusations of monopolistic practices.
“Our board has decided that we shouldn’t do the steel because if we do the steel business, we will be called all sorts of names like monopoly. And then also, imports will be encouraged,” he explained.
Over the weekend, the billionaire granted an interview to journalists where he spoke extensively on the challenges faced by his refinery in sourcing crude oil.
He also walked back from his earlier promise to invest heavily in steel producton.
Recently, Vice President of Dangote Industries Limited, Devakumar Edwin, accused international oil companies of hindering the refinery’s launch by selling crude oil at inflated prices in Nigeria and suggested that many imported fuel products were substandard.
Speaking at a session with Energy Editors during a one-day training program organised by the Dangote Group, Edwin detailed the challenges faced by their refinery.
“The IOCs are intentionally obstructing the refinery’s efforts to purchase local crude by inflating premium prices above market rates,” Edwin asserted.
He explained that these inflated prices forced the refinery to seek crude from distant sources like the United States, significantly driving up production costs.
However, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) countered these claims saying that the quality of petroleum products from the Dangote Refinery was poor.
Chief Executive Officer of the NMDPRA, Farouk Ahmed, had said, “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 inferior to imported ones.”
A charge which Dangote later dismissed as baseless, unfounded and misleading.
“The false and misleading allegations made by some media outlets that the Dangote Refinery is producing substandard diesel, which is why it reduced the price by 37%, are baseless and mischievous,” Chiejina stated.
“Until late last year, diesel imports into Nigeria contained up to 7,000 parts per million (ppm) of sulfur, a practice that has persisted for many years.
“Our diesel is produced with significantly lower sulfur levels, making the quality-related allegations groundless. Our product is 80% superior to what is being imported into the country,” the company’s spokesperson, Anthony Chiejina, said.
