NNPCL can buy our refinery out, run it – Aliko Dangote

NNPCL can buy our refinery out, run it – Aliko Dangote

Aliko Dangote, Africa’s richest man, has expressed his willingness to sell his oil refinery to the Nigerian National Petroleum Company (NNPC) Limited amid ongoing disputes with Nigeria’s regulatory authorities.

Dangote made this statement during an interview with Premium Times on Sunday.

“If they [NNPCL] buy me out and run the refinery the best way they can, they have labeled me a monopolist,” Dangote said. “That’s an incorrect and unfair allegation, but it’s okay. If they buy me out, at least, their so-called monopolist would be out of the way.”

Dangote highlighted the long-standing fuel crisis in Nigeria and the potential of his refinery to help resolve it. He expressed frustration over the opposition he faces, attributing it to some individuals being uncomfortable with his involvement. He also mentioned his age, saying, “I am 67 years old, in less than three years, I will be 70. I need very little to live the rest of my life.”

The billionaire emphasized that his actions are in the best interest of Nigeria, stating, “Everything I do is in the interest of my country. So, I am ready to let go, let the NNPC buy me out, run the refinery. At least the country will have high-quality products and create jobs.”

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Dangote’s refinery, inaugurated in May 2023, has a capacity of 650,000 barrels per day and is located in the free zone area of Ibeju-Lekki, Lagos. While diesel production began on January 12, petrol production has been delayed due to various challenges, including crude supply issues and a fire outbreak at the facility. The refinery has had to import crude from countries like Brazil and the US due to constraints in accessing crude from international oil companies (IOCs) in Nigeria.

At the inauguration, the refinery announced a supply deal with the NNPC and agreed to a 20 percent equity participation. However, only 7.2 percent had been fully paid for before the deadline for acquiring the stake.

Dangote reflected on the obstacles his refinery is facing, noting that some friends and associates had advised him to be cautious about investing billions of dollars into the Nigerian economy. He mentioned one wealthy friend who began investing abroad due to policy inconsistencies and interest group interference, saying, “That friend has been taunting me in the past few days, saying he warned me and that he has been proven right.”

The challenges with crude supply were highlighted on June 4 when Dangote stated that some IOCs were struggling to supply crude to his refinery. This claim was disputed by Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), who said that the Petroleum Industry Act (PIA) provides for willing buyer-willing seller transactions. However, Dangote Industries Limited insisted that IOCs were frustrating its crude feedstock requests.

On July 18, Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), criticized local refineries, including Dangote’s, for producing inferior products compared to imported ones.

NNPCL can buy our refinery out, run it – Aliko Dangote

(PremiumTimes)