The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that the Dangote refinery has not yet been licensed to begin operations.
Speaking with journalists at the State House in Abuja on Thursday, NMDPRA Chief Executive Officer Farouk Ahmed clarified the situation.
He refuted claims that the regulatory body was obstructing the private refinery’s operations due to a lack of crude oil supply from International Oil Companies (IOCs).
Ahmed emphasized that the refinery is still in the pre-commissioning stage and has not received its operating license.
“There are concerns about the supply of petroleum products nationwide, and some media outlets have reported that we were trying to hinder the Dangote refinery.
That is not true. Dangote Refinery is still in the pre-commissioning stage. We have not licensed them yet,” Ahmed stated.
He further explained that Dangote Refinery’s request to halt all importation of petroleum products would lead to a monopoly, which could negatively impact the nation’s energy security.
“At about 45 percent completion, we cannot rely solely on one refinery to supply the entire nation. Dangote has requested that we stop all importation of petroleum products, particularly automotive gas oil (AGO) and jet kero, and direct all marketers to their refinery,” Ahmed said.
Ahmed also raised concerns about the quality of petroleum products produced by Dangote refinery, noting that their quality is inferior to imported products.
“Currently, the quality of AGO in terms of sulfur is the lowest, meeting the West African requirement of 50 ppm.
However, Dangote Refinery, along with other major refineries like Walter Smith’s refinery, produces 650 to 1,200 ppm. So, their quality is much inferior to the imported commodities,” he added.
Devakumar Edwin, Vice-President at Dangote Industries Limited, accused IOCs of making it difficult for the company to access local crude oil, forcing them to use expensive middlemen and pay inflated prices.
Edwin claimed that while only one local producer, Sapetro, sells directly to Dangote Industries Limited (DIL), others rely on non-Nigerian trading arms that add unnecessary costs.
He alleged that IOCs have consistently obstructed the company’s access to local crude, often offering it at a premium of $2-$4 per barrel above the official price set by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
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