Aliko Dangote, the President of the Dangote Group, has raised concerns about the importation of substandard petroleum products into Nigeria, which are then sold to unsuspecting consumers.
During a visit to the Dangote Refinery in Lagos State by the leadership of the House of Representatives, including Speaker Tajudeen Abbas and Deputy Speaker Benjamin Kalu, Dangote emphasized the urgent need for an investigation into the quality of imported petroleum products.
He suggested that there might be saboteurs within the oil sector or possibly ulterior motives aimed at undermining his business.
As Africa’s wealthiest individual, Dangote highlighted the necessity of verifying the quality of petroleum products available in the Nigerian market. He proposed that independent tests be conducted on fuel purchased directly from filling stations to ascertain their true quality.
Dangote stated, “The most important thing, Your Excellency, is to note that the imported one they are encouraging, is the spec in the test, but in certain cases, when you check (independently), different results will show.”
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Dangote refuted allegations made by Farouk Ahmed, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPR), which claimed that products from the Dangote Refinery were substandard.
He asserted that his refinery’s products not only meet but exceed the highest quality standards compared to imported alternatives.
To substantiate his claims, Dangote presented evidence from tests conducted at the refinery’s laboratories using the ASTM D4294 method. The results showed that diesel produced by his refinery initially had a sulphur content ranging between 600 and 650 parts per million (ppm).
He noted that the quality of this diesel had significantly improved, with the sulphur content reduced to 87 ppm, and projected a further reduction to 50 ppm by the following Monday.
In contrast, diesel samples from two different filling stations showed alarmingly high sulphur content, with levels over 1,800 ppm and 2,600 ppm, respectively. These findings, according to Dangote, not only validated the high quality of his refinery’s products but also highlighted the influx of substandard petroleum products into the Nigerian market.
Dangote called on the House of Representatives to investigate the quality of laboratories utilized by the NMDPR for testing imported products and to compare them with the state-of-the-art facilities at his refinery.
He expressed openness to independent testing of his refinery’s products to further demonstrate their superior quality and to expose the deficiencies in products offered by other market participants.
Additionally, Dangote addressed concerns about potential monopolistic practices, asserting that the Dangote Group had not received any special incentives during the construction of the refinery.
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In a surprising announcement, he revealed that the company would withdraw its plans to enter Nigeria’s steel industry to avoid any accusations of monopolizing the market.
Dangote explained that entering the steel industry would necessitate the importation of raw materials from overseas, which contradicts the company’s core mandate of promoting local content.
This disclosure underscores Dangote’s commitment to maintaining transparency and integrity in his business operations, while also protecting the interests of Nigerian consumers by advocating for higher standards in the petroleum industry.