Aliko Dangote, Africa’s wealthiest individual, has expressed willingness to sell his multi-billion-dollar oil refinery to NNPC Limited, Nigeria’s state-owned energy company, due to ongoing disagreements with the federal government.
The refinery, which has a capacity of 650,000 barrels per day and began operations last year after a decade-long construction, has faced significant challenges, including difficulties in securing crude oil from international suppliers.
Despite having a supply agreement, NNPC has only delivered 6.9 million barrels of oil since last year, forcing the refinery to seek alternative sources from countries like Brazil and the US.
Frustrated by these obstacles, Dangote has stated his readiness to part with the project if it benefits the country.
“Let them (NNPCL) buy me out and run the refinery the best way they can. They have labeled 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,” Dangote said in a recent interview with Premium Times.
Dangote, who has dominated Nigeria’s cement, salt, and sugar industries, ventured into the oil and gas sector, which has proven to be challenging.
The refinery, which cost $19 billion to build, promises to reduce Nigeria’s reliance on imported fuel and save up to 30% of foreign exchange spent on imports. However, it has been operating at just over half its capacity due to difficulties in sourcing crude oil from international producers. The first batch of petrol is expected to be released to the Nigerian market in August.
“At 67, I am close to 70 and need very little to live the rest of my life. I can’t take the refinery or any other property to my grave. Everything I do is in the interest of my country,” Dangote said.
“This refinery can help resolve problems, but some seem uncomfortable with my involvement. So I am ready to let go, let NNPC buy me out and run the refinery. At least the country will have high-quality products and create jobs,” he added.
Dangote’s decision follows numerous challenges that validate the caution advised by friends and associates when he invested billions into Nigeria’s economy.
“Four years ago, a wealthy friend invested abroad. I disagreed and urged him to reconsider for the sake of our country. He cited policy inconsistencies and interest groups. Recently, he’s been taunting me, saying he warned me and has been proven right,” Dangote said.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Group, recently accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of allowing the importation of substandard fuel. In response, NMDPRA’s CEO, Farouk Ahmed, claimed that diesel produced by Dangote’s refinery and others contains high levels of sulfur, potentially damaging engines and the environment.
However, during a recent tour of the Dangote Petroleum Refinery and Dangote Fertiliser Limited complex by members of the House of Representatives, Dangote disputed these claims. Lab tests revealed that Dangote’s diesel contains just 87.6 ppm of sulfur, significantly lower than the 1800 ppm and 2000 ppm found in imported samples. Dangote challenged the regulator to an impartial comparison of his refinery’s products versus imported ones, advocating for a fair assessment in Nigeria’s best interests.
During the tour, Dangote also announced he would halt his investment in Nigeria’s steel industry to avoid accusations of monopoly.
