Aliko Dangote, Africa’s wealthiest man, has offered to sell his multibillion-dollar oil refinery to the state-owned energy company, NNPC Limited.
This decision comes amidst a new dispute with a key equity partner in the refinery, which has added to ongoing tensions with Nigerian regulatory authorities.
The 650,000 barrel-per-day refinery, operational since last year after a decade of construction, cost $19 billion, more than the initial estimate.
It aims to reduce Africa’s biggest oil producer’s reliance on imported fuel, potentially saving up to 30% of the foreign exchange spent on imports.
“If NNPCL buys me out and runs the refinery, the monopolist label on me would be removed. Despite the unfair allegation, I am willing to step aside if it means resolving the fuel crisis we’ve faced since the 70s,” Dangote stated in an exclusive interview with PREMIUM TIMES.
Dangote’s entry into the oil and gas sector has been challenging, with the refinery currently operating at just over half its capacity since starting operations in January, largely due to difficulties in sourcing crude from international suppliers. The company has turned to imports from Brazil and the US to meet its needs.
“We are negotiating with Libya for crude imports and will also engage with Angola and other African nations,” said Devakumar Edwin, a senior executive at Dangote Refinery.
NNPC, previously a major supporter, has supplied only 6.9 million barrels of oil to the refinery since last year, well below the agreed amount. The refinery has had to look for alternative crude sources due to these supply issues.
Dangote stressed that his investments are for the benefit of Nigeria, despite the recent obstacles. He also pointed out that his refinery’s diesel has been wrongly accused of having high sulphur content, asserting that lab tests showed its diesel had a sulphur content of 87.6 ppm, significantly lower than the imported diesel.
Furthermore, Dangote announced plans to halt investment in Nigeria’s steel industry to avoid monopoly accusations, reflecting his cautious approach following advice from friends and associates who previously warned him about the complexities of investing heavily in the Nigerian economy.
