Dangote accuses Govt Agency, IOCs of frustrating refinery from rolling out petrol into the market
…Firm accuses govt agency of aiding indiscriminate importation
Dangote Group has accused International Oil Companies (IOCs) operating in the country of deliberately sabotaging Dangote Refinery’s plan to roll out petrol into the market.
According to the company, the IOCs are doing this to ensure that the country remains dependent on petrol imports perpetually.
It added that they have employed underhand tactics in crude pricing and deliberately stalling supply to frustrate Dangote Refinery.
Vice President of Oil and Gas, Dangote Industries Limited (DIL), Devakumar Edwin, made this known yesterday in Lagos.
He, however, added that despite these challenges, the refinery is on its last lap of testing ahead of roll out next month.
He explained that the IOCs have raised local crude prices above the international market price, forcing it to import crude from countries as far as the United States, with its attendant high costs.
He also criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), for granting licenses indiscriminately to marketers, who, according to the firm, import “dirty refined products into the country”.
Edwin said: “The Federal Government issued 25 licenses to build refineries and we are the only one that delivered on the promise.
“In effect, we deserve every support from the government. It is good to note that from the start of production, more than 3.5 billion liters, which represent 90 percent of our production, have been exported.
“We are calling on the Federal Government and regulators to give us the necessary support to create jobs and prosperity for the nation.”
According to him, while the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been trying its best to allocate crude to Dangote Refinery, such efforts are being frustrated by the IOCs.
Speaking further, Edwin said: “It seems that the IOCs’ objective is to ensure that our Petroleum Refinery fails.
“It is either they are deliberately asking for ridiculous/humongous premium or they simply state that crude is not available.
“At some point, we paid $6 over and above the market price. This has forced us to reduce our output as well as import crude from countries as far as the U.S., increasing our cost of production.
“It appears that the objective of the IOCs is to ensure that Nigeria remains a country which exports crude oil and imports refined petroleum products.
“They (IOCs) are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their GDP, and dumping the expensive refined products into Nigeria – thus making us dependent on imported products.
OKAY becomes Dangote Refinery’s official distributor
“It is the same strategy the multinationals have been adopting in every commodity, making Nigeria and Sub-Saharan Africa to be facing unemployment and poverty, while they create wealth for themselves at our expense. This is exploitation – pure and simple.
“Unfortunately, the country is also playing into their hands by continuing to issue import licenses at the expense of our economy and at the cost of the health of Nigerians, who are exposed to carcinogenic products.
“Even though we are producing and bringing out diesel into the market, complying with ECOWAS regulations and standards, licenses are being issued, in large quantities, to traders who are buying the extremely high sulfur diesel from Russia and dumping it in the Nigerian Market.
“Since the U.S., EU, and UK imposed a Price Cap Scheme from 5th February 2023 on Russian Petroleum Products, a large number of vessels are waiting near Togo with Russian ultra-high sulfur diesel and, they are being purchased and dumped into the Nigerian Market.
“In fact, some of the European countries were so alarmed about the carcinogenic effect of the extra high sulfur diesel being dumped into the Nigerian market that countries like Belgium and the Netherlands imposed a ban on such fuel being exported from its country, into West Africa.
“It is sad that the country is giving import licenses for such dirty diesel to be imported into Nigeria when we have more than adequate petroleum refining capacity locally.”
According to him, the decision of the NMDPRA to grant licenses indiscriminately for the importation of dirty diesel and aviation fuel has made the Dangote Refinery expand into foreign markets.
He appealed to the Federal Government and the National Assembly to urgently intervene for the speedy implementation of the Petroleum Industry Act (PIA) 2021 and to ensure the interests of Nigeria and Nigerians are protected.
He added: “Recently, the Government of Ghana, through legislation, banned the importation of highly contaminated diesel and PMS into their county.
“It is regrettable that, in Nigeria, import licenses are granted despite knowing that we can produce nearly double the amount of products needed in Nigeria and even export the surplus.
“Since January 2021, ECOWAS regulations have prohibited the import of highly contaminated diesel into the region.
“The same industry players fought us for crashing the price of diesel and aviation fuel, but our aim is to grow our economy,” Edwin said.
He noted that because the refinery meets the international standard as well as complies with stringent guidelines and regulations to protect the local environment, it has been able to export its products to Europe and other parts of the world.
NMDPRA said it would respond to Dangote Refinery’s allegations today.
