Aliko Dangote, President of the Dangote Group, has announced his readiness to sell the Dangote Refinery to the Nigerian National Petroleum Corporation Limited (NNPCL).
In an exclusive interview with Premium Times on Sunday, Dangote expressed his willingness to transfer ownership of the refinery in response to allegations of monopoly within the industry.
Dangote emphasized that if NNPCL were to acquire the refinery, the accusations of monopoly would be rendered baseless. He stated,
“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.”
He further elaborated on the historical context of Nigeria’s fuel crisis, which has persisted since the 1970s. According to Dangote, the Dangote Refinery has the potential to significantly mitigate this long-standing issue.
However, he acknowledged that his involvement in the project has faced resistance from certain quarters, he stated:
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“We have been facing a fuel crisis since the 70s. 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.”
This development follows comments made by Farouk Ahmed, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
Ahmed claimed that the Dangote Refinery had requested the regulator to cease issuing import licenses to other marketers, effectively positioning itself as the sole fuel supplier in Nigeria.
“We cannot rely heavily on one refinery to feed the nation, because Dangote is requesting that we should suspend or stop the importation of all petroleum products, especially AGO, and direct all marketers to the refinery.”
“That is not good for the nation in terms of energy security. And that is not good for the market, because of monopoly,” Ahmed remarked in a video interview with State House correspondents.
Additionally, Ahmed raised concerns about the quality of the refinery’s products, alleging that they were substandard.
In response, Dangote acknowledged the challenges faced by the refinery and noted that the criticisms he is currently encountering validate the cautionary advice he received from friends and associates. They had warned him to be careful about investing billions of dollars into the Nigerian economy.
The Dangote Refinery, which commenced operations last year after an extended construction period, has a capacity of 650,000 barrels per day.
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It was established with the intention of reducing Nigeria’s dependence on foreign fuel imports and conserving foreign exchange. Despite its potential benefits, the project has been mired in controversy and skepticism.
By offering to sell the refinery to NNPCL, Dangote aims to address the monopoly allegations and ensure that the refinery’s potential to solve Nigeria’s fuel crisis is realized, regardless of his involvement.