National Telescope national telescope newspaper
Taiwo Niyi
Africa’s richest man, Aliko Dangote, has announced his willingness to transfer ownership of his multibillion-dollar oil refinery to the Nigerian National Petroleum Company Limited (NNPCL).
This decision comes amidst an escalating dispute with one of the key equity partners and regulatory authorities in Nigeria.
The 650,000 barrels-per-day refinery, operational since last year after a decade of construction and at a cost of $19 billion, was intended to reduce Nigeria’s dependence on imported fuel and save up to 30% of the country’s foreign exchange spent on imports.
According to reports, Dangote said, “Let them (NNPCL) buy me out and run the refinery the best way they can. 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.”
He expressed frustration over the ongoing fuel crisis, noting that despite the refinery’s potential to address these issues, some individuals are uncomfortable with his involvement.
Dangote added that the refinery has been operating at just over half its capacity due to challenges in sourcing crude from international producers, who either demand high premiums or claim unavailability of the product.
Since January, NNPC had delivered only 6.9 million barrels of oil to the plant, despite a previous agreement for a 20% equity participation, of which only 7.2% has been paid.
To bridge the supply gap, Dangote Refinery has turned to countries like Brazil and the US.
Dangote, who is 67 years old, reflected on his investments, stating, “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. 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.”
He also shared his experiences and the challenges faced, saying, “Four years ago, one of my very wealthy friends began to invest his money abroad. I disagreed with him and urged him to rethink his action in the interest of his country.
“He blamed his action on policy inconsistencies and shenanigans of interest groups. That friend has been taunting me in the past few days, saying he warned me and that he has been proven right.”
The refinery recently faced accusations from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of producing inferior fuel with high sulphur levels.
However, during a tour by members of the House of Representatives, lab tests revealed that Dangote’s diesel had a sulphur content of 87.6 ppm, much lower than the imported samples, which had levels exceeding 1800 ppm and 2000 ppm.
In the light of these challenges, Dangote announced plans to halt his investment in Nigeria’s steel industry to avoid further accusations of monopolistic practices.
“Our board has decided that we shouldn’t do the steel business 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 said.
