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Economic Issues > Blog > Uncategorized > Dangote Refinery Secures Repeated International Orders Amid Regulatory Disputes
Uncategorized

Dangote Refinery Secures Repeated International Orders Amid Regulatory Disputes

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By Reporter July 21, 2024
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L-R: Group Executive Director, Commercial Operations, Dangote Industries Limited, Fatima Aliko-Dangote; House Leader, House of Representatives, Hon. Julius Ihonvbere; Speaker, House of Representatives, Rt. Hon. Abbas Tajudeen; President/CE, Dangote Industries Limited, Aliko Dangote; Deputy Speaker, House of Representatives, Hon. Benjamin Kalu; Vice President, Oil & Gas, Dangote Industries Limited, Devakumar Edwin, during the Honourable Members of House of Representatives delegates visit to Dangote Petroleum Refinery, Petrochemicals and Fertiliser Plant in Lekki
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Dangote Refinery Secures Repeated International Orders Amid Regulatory Disputes
By Patience Ikpeme

 

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Aliko Dangote, President of Dangote Group, has disclosed that the Dangote Petroleum Refinery has been receiving continuous orders for its products since the commencement of production.

This statement was made during a tour of the Dangote Petroleum Refinery & Petrochemicals and Dangote Fertiliser Limited complex by members of the House of Representatives. The refinery has successfully exported products to European countries, Singapore, and offshore Lome.

Dangote expressed his frustration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), accusing it of undermining local industries and disseminating misleading information to justify the importation of substandard fuel.

According to him, “I urge you to even set up a committee that will take samples at filling stations and take our own sample, because I must tell you that all the test certificates people are flaunting around are fake certificates. Where are the laboratories where those tests were conducted? By doing this, you will be able to tell Nigerians the very truth that they deserve to know.”

During the tour, Dangote challenged the NMDPRA to compare the quality of Dangote refinery’s products with imported ones. He emphasized the refinery’s commitment to transparency, inviting the regulator to conduct tests on their products at any time. “We produce the best diesel in Nigeria. It is disheartening that instead of safeguarding the market, the regulator is undermining it,” he said.

Dangote highlighted the superior quality of their diesel, noting that recent tests showed their product had a sulphur content of 87.6 ppm, significantly lower than the NMDPRA’s permitted level of 650 ppm until January 2025.

He mentioned their goal to achieve 10 ppm sulphur content next week, aligning with the Euro V standard. “Imported diesel is capped at 50 ppm, but as you have seen, those from the stations, imported by major marketers, fall well outside this standard,” Dangote observed.

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Dangote also pointed out that high-sulphur content diesel imported into the country often comes with dubious certifications, posing health risks and financial losses to Nigerians. “The best method to verify this is to purchase the product directly from filling stations where end-users obtain it,” Dangote said, adding that the refinery has exported diesel and jet fuel to Europe and Asia without complaints, receiving repeated orders that indicate satisfaction with their products.

Supporting Dangote’s assertions, Devakumar Edwin, Vice President of Gas and Oil at Dangote Industries Limited, referenced recent actions by European countries like Belgium and the Netherlands, which have banned exports of high-sulphur diesel to West Africa due to its carcinogenic effects. Edwin assured that the Dangote Petroleum Refinery conforms to Euro V specifications and other international standards, with the capacity to meet Nigeria’s full demand for petrol, diesel, kerosene, and aviation jet fuel, along with surplus for export.

Olakunle Alake, Group Vice President, expressed disappointment over monopoly accusations against the Dangote Group, emphasizing the presence of multiple industry players, including the Nigerian National Petroleum Company Limited (NNPCL), which operates four refineries.

House of Representatives Speaker Rt. Hon. Abass, expressing concern over the quality of imported refined products, announced the establishment of a committee to investigate the matter. He praised the Dangote Oil Refinery’s infrastructure, describing it as a significant asset in Nigeria’s quest for self-sufficiency in petroleum products.

“Today’s visit to the magnificent facilities of Dangote Industries Oil Refinery section has been nothing short of enlightening,” said Abass. “The sheer scale and sophistication of this facility are awe-inspiring; it stands as a beacon of hope for our country as we navigate through the turbulent waters of energy supply challenges.”

Commending the refinery’s state-of-the-art technology, Abass noted that the facility exemplifies engineering and innovation excellence. He acknowledged the challenges faced during its construction and lauded Dangote’s steadfast commitment to excellence despite regulatory hurdles, crude oil supply complexities, and economic constraints.

This report underscores the ongoing tensions between the Dangote Group and regulatory authorities, highlighting the refinery’s achievements and challenges in Nigeria’s petroleum industry.

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Reporter July 21, 2024 July 21, 2024
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