January 14, 2025
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OIL & GAS

Minister Intervenes in Dispute between Dangote and Oil Industry Agencies

Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), has intervened in the ongoing conflict between Aliko Dangote, President of the Dangote Group, and the supervising agencies in the oil and gas industry over issues surrounding the Dangote Refinery.

On Monday in Abuja, Lokpobiri met with Dangote and the heads of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Company Limited (NNPCL).

This meeting followed accusations and counter-accusations from Dangote and the agencies regarding alleged plans to sabotage the refinery by denying it necessary feedstock for production.

Dangote has alleged that International Oil Companies (IOCs) in Nigeria are actively trying to undermine the Dangote Oil Refinery and Petrochemicals.

He claimed that these IOCs are obstructing the refinery’s efforts to purchase local crude by inflating premium prices above market rates, forcing the refinery to import crude from distant countries like the United States, thereby increasing costs significantly.

In response, the NMDPRA has accused the Dangote Refinery of producing inferior products compared to imported ones.

Farouk Ahmed, head of the NMDPRA, specifically mentioned that the diesel produced by Dangote has a sulphur content of 665 ppm, which he deemed inferior.

Ahmed also stated that the Dangote Refinery was only 45% completed and thus unable to meet the country’s needs.

During a visit by the leadership of the House of Representatives to the plant on Saturday, Aliko Dangote insisted on testing the gasoil from his refinery against other samples sold in the local market.

The results showed that the diesel from the Dangote Refinery had a sulphur content of 87.6 ppm, while the other two samples had sulphur levels exceeding 1800 ppm and 2000 ppm, respectively.

The public has criticized these exchanges, urging the federal government to act in the nation’s best interest.

In a statement on Monday night, Nneamaka Okafor, the Special Adviser on Media and Communication to Lokpobiri, said, “The stakeholders expressed their gratitude to the minister for his exemplary leadership and timely intervention in facilitating this crucial dialogue. The meeting focused on finding a sustainable and lasting solution to the current impasse affecting the Dangote Refinery, with all parties demonstrating a commitment to collaborative and proactive problem-solving.”

Okafor added that the minister emphasized the importance of cooperation and synergy among all stakeholders to ensure the success and optimal performance of the oil and gas sector, which is crucial for Nigeria’s economic growth and energy security.

The meeting marked a significant step towards resolving the challenges facing the Dangote Refinery.

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