From left: Vice President, Oil & Gas, Dangote Industries Limited, Devakumar Edwin; President/CE, Dangote Industries Limited, Aliko Dangote, holding a sample of refined PMS; Group Executive Director, Commercial Operations, Dangote Industries Limited, Fatima Aliko Dangote during the unveiling of the first output of the Premium Motor Spirit (PMS) product (Petrol), from the Dangote Petroleum Refinery, Lekki Lagos on Tuesday, September 3, 2024
Promises no more importation of polypropylene as from October
For the first time, Nigerians will gain a clear
understanding of the country’s actual fuel consumption, according to Aliko
Dangote, President of Dangote Group. This announcement comes as Dangote
officially confirmed the rollout of Premium Motor Spirit (PMS), commonly known
as petrol, from the world’s largest single-train refinery with a capacity of
650,000 barrels per day.
Reflecting on the achievement of starting PMS
production 28 years after Nigeria’s four refineries ceased domestic refining,
Dangote, speaking to the press at the refinery in Ibeju-Lekki, Lagos,
emphasised that this development will boost the industrial and manufacturing
sectors. He highlighted that the refinery will significantly reduce fuel
imports, saving foreign exchange, and will contribute to stabilising the naira,
lowering inflation, and reducing the cost of living.
Dangote, accompanied by Vice President of Oil and Gas
at Dangote Industries Limited (DIL), Devakumar Edwin, and Group Commercial
Operations Director at DIL, Hajiya Fatima Aliko-Dangote, described this
milestone as a transformative moment for Nigeria, ending years of fuel imports.
He expressed gratitude to Nigerians for their support
and praised President Bola Ahmed Tinubu for fostering an environment that made
the successful launch of the 650,000 barrels per day refinery possible.
He stated, “Today is a momentous occasion because
Nigeria has not produced petrol, or gasoline, for many years. As I stand here, I
want to extend my gratitude to the people of Nigeria and to President Bola
Ahmed Tinubu’s administration for creating the environment that has enabled us
to achieve this monumental task. This development will provide energy for our
nation’s growth, development, and prosperity.”
He continued, “I want to personally thank Mr.
President for introducing the concept of ‘Naira for Crude’ and ‘Naira for
Products.’ This initiative will bring much-needed stability to the Naira by
reducing the demand for dollars in the market by 40%, which will help stabilise
the exchange rate.
“But that’s not all. It will also address issues like
‘round-tripping,’ where fuel is documented but doesn’t actually enter Nigeria.
With this new refinery, we will have a clear view of true consumption. We’ll be
able to track every loaded truck and, as much as possible, monitor loaded
ships. This will allow us to precisely determine consumption patterns, though
that’s a topic for another discussion.
“Today, we are here to celebrate and give thanks to
God Almighty for bringing us to this point where we can produce gasoline. Many
doubted we would achieve this, but we have delivered.
“We owe a debt of gratitude to the President and his
government. Without their support, we wouldn’t be where we are today. I believe
this refinery will transform not only Nigeria but also the entire Sub-Saharan
Africa. Our capacity will not only meet Nigeria’s needs but also serve the
demands of the broader region.”
Displaying a sample of the PMS to the press, Dangote
remarked, “This petrol might be a bit cleaner compared to what we had before.
It’s of the highest quality, ensuring that your vehicle’s engine will last
longer. The quality of this fuel can match any premium standard worldwide,
including those in Europe and America. No one can surpass us in terms of
quality. Today is truly a celebration for us Nigerians.
“We are committed to ensuring that starting in October,
there will be no need to import polypropylene. Our petrochemical plant will be
fully capable of meeting all local demands,” Dangote stated.
While assuring that the refinery will guarantee the
availability of petrol in Nigeria, Dangote clarified that the nation’s oil
company, the Nigerian National Petroleum Corporation Limited, NNPCL, is
responsible for controlling petrol pump prices.
He described this development as a significant
turnaround for the country, ending years of not producing a single litre of
petrol domestically. Dangote emphasised that while he can ensure a steady
supply of fuel from the refinery, the NNPC will manage pricing.
“Pricing is controlled by NNPC. For now, we focus on
ensuring that the products are available—that’s what I can guarantee,” Dangote
said.
Our attention has been drawn to media reports alleging that the Dangote Refinery has backtracked by acknowledging that NNPC supplied about 60% of the 50 million barrels we lifted.
To clarify, we have never accused NNPC of not supplying us with crude. Our concern has always been NUPRC’s reluctance to enforce the domestic crude supply obligation and ensure that we receive our full crude requirement from NNPC and the IOCs.
For September, our requirement is 15 cargoes, of which NNPC allocated six. Despite appealing to NUPRC, we’ve been unable to secure the remaining cargoes. When we approached IOCs producing in Nigeria, they redirected us to their international trading arms or responded that their cargoes were committed.
Consequently, we often purchase the same Nigerian crude from international traders at an additional $3-$4 premium per barrel which translates to $3-$4 million per cargo
We therefore still insist that we are unable to secure our full crude requirement from domestic production and urge NUPRC to fully enforce the domestic crude supply obligation as mandated by the PIA.
From left: Global Integrity Crusade Network, Barr. Edward Ejembi; Guidance of Democracy and Development Initiative, Comr. Igwe Ude – Umanta; Save Humanity Advocacy Centre (SHAC) Barr. Mary Ogwiji; Rising Up for a United Nigeria, Amb. Solomon Adodo; Vice President, Oil & Gas, Dangote Industries Limited, Devakumar Edwin; Empowerment For Unemployed Youth Innovative, Comr. Danesi Momoh and Zero Tolerance for Corruption Association ( ZTCA), Abdulmalik Zakari during the visit of members of the Civil Society Organisations to Dangote Petroleum Refinery, Petrochemical And Fertiliser Plants,in Lagos at the weekend.
…To set up situation room in Abuja
A coalition of Civil Society Organisations (CSO) at the weekend said it would set up a situation room to monitor the compliance of the Nigeria National Petroleum Corporation Limited (NNPCL) to the presidential directive to sell crude oil to Dangote Refinery in Naira currency.
Leaders of the 28 CSOs who were on facility tour of the 650,000 bpd world’s largest single train refinery in Lagos said the disposition of the NNPCL and the regulatory agencies was a clear indication the they deliberately held down the nation’s refineries so that they could continue importing petroleum products.
Recall that President Bola Tinubu had in the web of controversies that trailed the face-off between Dangote Refinery and the NNPCL intervened and directed the Corporation to henceforth sell crude to Dangote Refinery in Naira
Speaking on behalf of others, Solomon Adodo of the Rise Up for A United Nigeria said what his group had seen was a world class facility and wondered how a regulatory agency of the government could take sides with importers of petroleum products when a local refinery is now available to bail the nation out of the forex quagmire which has made the price petroleum products to skyrocket.
He disclosed that the CSOs have concluded to petition the Presidency on the need to adopt Dangote Refinery as a national asset that should be used to liberate the country from the shackles of importation of fuel while it exports crude.
Said he: having gone round to see this world class project, we are at a loss as to why the government could decide to turn against Nigerians in this manner. But we are not too surprised give our past experiences. Those who are profiting from our collective misfortune will not want the Dangote refinery to work.
“We are ready to defend this facility with everything as civil society organizations. We are not speaking on our behalf but on behalf of all Nigerians and on behalf of our fatherland. It leaves much to be desired how an agency of government with oversight function to guide to grow such a project as this would now be disparaging same project. This is too bad.
“We have seen for ourselves and we have cleared all doubt as to the completion of this refinery and the readiness to supply all our domestic needs. We will exposed them all. Anyone who is not ready to ensure Nigeriand have a new lease of life must give way. Now it is fight to finish.
“Going forward, we are going to set up a situation room to monitor the compliance of the NNPCL with the directive of Mr. President that Dangote Refinery would be supplied with Crude in Naira because we know that the enemies of the people would wnt to adopt another strategy to sabotage the presidential directive.
“It is a criminal audacity for an agency of government to brazenly disparage a national asset like Dangote Refinery, more so when government has four refineries and all of them are moribund, how then would you treat a orivate investors who has committed everything to build a functional refinery much more bigger than all the four own by government put together.
“Nigerians are not stupid; we all know what is interplaying here. They told us that after removing fuel subsidy, market forces would force the price down , what a fallacy of market forces, here we are, the forces have only succeeded in pushing the price up. Now we have a local refinery that will bail us out yet they don’t want it to operate. So that Nigerians would benefit from it.”
Adodo said that the CSOs would mount serious advocacy to make government accede to demands of Nigerians which is not just granting the sale of crude to Dangote Refinery in Naira but also ensuring Dangote fuel are available at petrol stations for Nigerians to buy.
The group appealed to the management of Dangote Refinery not to be discouraged but to trudge on as the group would mount serious campaign in favour of the refinery. “Even if it means we should protest, we will. We cant allow this international embarrassment to stand.”
He argued that all the claims about monopoly against Dangote Refinery was just to call a dog a bad name in other to hang it. What Dangote Refinety will stand foe is not monopoly but peoplepoly. We will write the American Societ of Engineers over this and the European Union. We will maintain eternal vigilance.
Speaking while welcoming the group, Vice-President, Dangote Industries Limited, Devakumar Edwin, described Dangote Refiney as a value adding facility as it will stop the exportation of Nigeria’s crude and importation of finished products and wonder why government would be against such a vision for Nigeria.
According to him, many African countries have minerals but they are not adding value to their economies because, those minerals are exported raw and the finished products are imported back into the country whereas vice versa should have been the order of the day.
“This is what Dangote refinery seeks to correct, we did same in Cement and Sugar sectors where Nigeria was a a leading importer of those products and with the coming of Dangote leading the backward integration programme of the government, others cam into the sector and together Nigeria now exports cement to other countries.
“What we want to do in Refinery, we have done it other businesses, Nigeria used to be the biggest importer of Sugar, we came in and change the narrative. We led the backward integration scheme of the federal government, and we now produce sugar locally for domestic consumption and others have joined us. We did same in Cement by opening up production plant and today Nigeria exports cement to other countries.
“In a business no one was interested in investing into, Dangote delved into it determined to ensure Nigeria no longer imports fuel, invested massively and come up with the world’s largest single train refinery. He said he would not take his money to Dubai or Swiss banks as others are doing, he decided to invest at home and now they are saying he wants to create monopoly.
“We didn’t ask for any favour other than that we want to buy crude to produce, first they said there was no crude, later they said we would have to pay some dollars above the prevailing crude market price. And this is a global market where you can track crude prices anytime. We resorted to buying crude from Brazil and United States. Later they said we should not be announcing the price of the products.
“Even the US that is the leading proponent of of free market economy protects its local industries by imposing huge duty on from foreign imports just to protect local industries. This is a man that Saudi Aramco once approached to come and cite hie refinery in Saudi Arabia, promising steady supply of cruse. Abu Dahbi also invited him to do same on their soil but he rejected insiting he would build at home, now he did that and a facility that is supposed to add value to Nigeria’s economy is being frustrated.”
The Dangote Vice-President said the Company would continue to focus on its business strategy which is to add value to Nigeria economy through investments and job creation for the teeming Nigerian masses. According to him, Nigeria can only consume 45% of the capacity of the refinery while the remaining 55% will be exported and bring into the country foreign exchange needed badly.
Group Executive Director, Commercial Operations, Dangote Industries Limited, Fatima Aliko-Dangote; House Leader, House of Representatives, Hon. Julius Ihonvbere; Speaker, House of Representatives, Rt. Hon. Abbas Tajudeen; Deputy Speaker, House of Representatives, Hon. Benjamin Kalu; President/CE, Dangote Industries Limited, Aliko Dangote; Deputy Chief Whip. Rt. Hon Otunba Adewunmi Oriyomi Onanuga during the Honourable Members of House of Representatives delegates visit to Dangote Petroleum Refinery, Petrochemicals and Fertiliser Plant in Lekki, on Saturday, July 20, 2024.
…Urges National Assembly to test all available products from Standard laboratory to disclaim NMDPRA’s assertions
President of Dangote Group, Aliko Dangote, over the weekend
revealed that Dangote Petroleum Refinery has continued to receive repeated orders
for its products from all those who have purchased same since the commencement
of production. The refinery has so far exported its products to some European
countries, Singapore and offshore Lome.
Speaking during a tour of both Dangote Petroleum Refinery
& Petrochemicals and the Dangote Fertiliser Limited complex by members of
the House of Representatives, Dangote wondered why a regulatory
authority like the Nigerian Midstream and Downstream Petroleum Regulatory
Authority (NMDPRA) that should protect local industries is castigating the
latter and even lying in media reports to justify the need to continue
importation of dirty fuel into the country.
According to him: “I urge you to even set up a committee that
will take samples at filling stations and take our own sample, because I must
tell you that all the test certificates people are flaunting around are fake
certificates. Where are the laboratories where those tests were conducted?
By doing this, you will be able to tell Nigerians the very truth that
they deserve to know. Demarketing of a company by a regulator that it is
supposed to protect it, is very unfortunate.
“We didn’t know that you were going to ask us to stop by the
road and take samples from other filling stations. I didn’t know what you
wanted to do until we got here and you requested for a test. It is even good
that it is your members that went directly to get our samples and I am sure you
were shocked by the result. With the result, you can see that we produce the
best diesel in Nigeria.”
Dangote openly challenged the regulator (NMDPRA) to compare the
quality of refined products from his petroleum refinery with those imported,
while advocating for an impartial assessment to determine what best serves the
interests of Nigerians. “We produce the best diesel in Nigeria. It is
disheartening that instead of safeguarding the market, the regulator is
undermining it. Our doors are open for the regulator to conduct tests on our
products anytime; transparency is paramount to us. It would be beneficial for
the regulator to showcase its laboratory to the world so Nigerians can compare.
Our interest is Nigeria first because if Nigeria doesn’t grow, we have limited
capacity for growth.
“Right Honourable Speaker and esteemed members, you have witnessed the results of the credibility test. I appreciate your wise counsel in procuring samples from the filling stations alongside our refinery’s product. Ours shows a sulphur content of 87.6 ppm, approximately 88, whereas the others exceeded 1,800 ppm. Although the NMDPRA permits local refiners to produce diesel with sulphur content up to 650 ppm until January 2025, as approved by ECOWAS, ours is significantly lower. Next week, we aim to achieve 10 ppm, aligning with the Euro V standard. Imported diesel is capped at 50 ppm, but as you have seen, those from the stations, imported by major marketers, fall well outside this standard,” Dangote observed.
From left: Vice President, Dangote Industries Limited, Olakunle Alake; Group Executive Director, Commercial Operations, Dangote Industries Limited, Fatima Aliko-Dangote; House Leader, House of Representatives, Hon. Julius Ihonvbere; Speaker, House of Representatives, Rt. Hon. Abbas Tajudeen; President/CE, Dangote Industries Limited, Aliko Dangote; Deputy Speaker, House of Representatives, Hon. Benjamin Kalu; Vice President, Oil & Gas, Dangote Industries Limited, Devakumar Edwin, with the engineers during the Honourable Members of House of Representatives delegates visit to Dangote Petroleum Refinery, Petrochemicals and Fertiliser Plant in Lekki, on Saturday, July 20, 2024.
He pointed out that high-sulphur content diesel regularly
imported into the country often comes with dubious certifications. He
emphasised that the most effective method to verify the quality is to purchase
the product directly from filling stations and conduct credibility tests.
According to him, this issue has resulted in both health risks and financial
losses for Nigerians.
“Dubious certifications often accompany the importation of
high-sulphur diesel into Nigeria, causing both health risks and financial
losses for Nigerians,” noted Dangote. “The best method to verify this is to
purchase the product directly from filling stations where end-users obtain it.
I believe Farouk Ahmed (Chief Executive of NMDPRA) speaks without sufficient
knowledge of our refinery. We have successfully exported diesel and jet fuel to
Europe and Asia without any complaints; in fact, we have received repeated
orders, indicating satisfaction with our products.”
Supporting Dangote’s assertion, Vice President of Gas and Oil at
Dangote Industries Limited, Devakumar Edwin, highlighted recent actions by European
countries like Belgium and the Netherlands. “These countries have expressed
concerns about the carcinogenic effects of high-sulphur diesel being dumped
into the Nigerian market, prompting them to impose bans on such fuel exports to
West Africa”, he said.
Edwin informed the visiting federal lawmakers that the Dangote
Petroleum Refinery, designed to process a wide range of crudes including
various African and Middle Eastern crudes, as well as US Light Tight Oil,
conforms to Euro V specifications. In addition, he said, it is designed to
comply with US EPA (United States Environmental Protection Agency), European
emission norms, Department of Petroleum Resources (DPR) emission/effluent
norms, and the African Refiners and Distribution Association (ARDA) standards.
Noting that products from the $20 billion facility are of high
quality which meet international standards, Edwin said it has the capacity to
meet 100% of Nigeria’s demand for petrol, diesel, kerosene, and aviation Jet,
with surpluses available for export.
The Group’s Vice President, Olakunle Alake, expressed
disappointment over accusations of monopoly against the Dangote Group. He
stressed that there are multiple players in the industry, including the
Nigerian National Petroleum Corporation (NNPC), which operates four refineries.
Expressing concern over the controversy surrounding the quality
of imported refined products into Nigeria, the Reps Speaker, Rt. Hon. Abass
stated that the Green Chamber would establish a committee to investigate the
matter thoroughly. He emphasised that sampled products from various sources
would undergo testing as part of this initiative.
The Speaker also expressed admiration for the infrastructure at
the Dangote Oil Refinery, describing it as a significant asset in Nigeria’s
quest for self-sufficiency in petroleum products. He noted that the refinery
has positioned itself as a pivotal player, especially at a time when global
concerns over energy security and sustainability are paramount.
“Today’s visit to the magnificent facilities of Dangote
Industries Oil Refinery section has been nothing short of enlightening. It has
afforded us a rare opportunity to witness first-hand the monumental strides
that your organisation has made in transforming the landscape of petroleum
production in Nigeria. The sheer scale and sophistication of this facility are
awe-inspiring; it stands as a beacon of hope for our country as we navigate
through the turbulent waters of energy supply challenges,” he said.
Commending the state-of-the-art technology implemented at the
petroleum refinery, Abbas praised it as revolutionary and a shining example of
engineering and innovation excellence.
“Each corner of this facility resonates with the echoes of hard
work, dedication, and an unyielding pursuit of quality. It is evident that
every drop produced here carries not just oil but also the hopes and dreams of
millions who yearn for a brighter future. We are deeply impressed by what we
have seen during this visit which confirms the rating of this industry as the
single largest oil refinery in Africa. This remarkable achievement does not
merely reflect corporate success; it symbolises national pride, a tribute to
what can be accompanied when visionary leadership meets relentless
determination,” he said.
Acknowledging the numerous challenges likely encountered during
the construction of the refinery, the Speaker lauded Dangote for his steadfast
commitment to achieving excellence.
“I would like to take this opportunity to acknowledge the myriad
challenges that have beset this remarkable facility. The regulatory hurdles
that often loom like dark clouds over progress, the complexities surrounding
crude oil supplies that can stifle even the most ambitious endeavours, and the
daunting economic landscape we navigate especially in these times when our
economy grapples with foreign exchange constraints, are all formidable
adversaries. Yet, despite these tribulations, your unwavering commitment to
excellence shines through,” he attested.
In the wake of the
revelation by the Dangote Group on its frustration in accessing crude oil,
Nigerians on social media have called out International Oil Companies (IOCs) on
sabotaging the process.
Civil Society organisations,
Nigerian students and social media users have expressed their displeasure,
stating that the Federal Government must protect the Dangote refinery against
any form of saboteurs.
The
state coordinator of a civil society group, known as Initiative for Defence of Democracy and Justice, Alhaji Aliyu Usman Kaoje, told journalists that “Let us sound a strong warning to them
to desist forthwith whatever they are doing directly or indirectly to frustrate
the operations of the refinery.”
Financial planning expert, Kalu Aja, queried that “If
Dangote needs crude, Nigerian National Petroleum Company (NNPC) should support
its 20 per cent investment by giving Dangote its oil equity,” Aja said.
Speaking also on the
development, Hector Igbikiowubo, publisher of Sweet Crude Reports asked that “how come the NNPC isn’t allotting all of its 445,000 barrels
per day to the Dangote Refinery for refining?” He asked on Channels Television
programme.
An X
user, with the handle, AgriGATE Nigeria tweeted that “If @DangoteGroup
@AlikoDangote refinery fail then @NigeriaGov can be said to be complicit in
conspiracy against the refinery. American government goes extra length to
protect interest of American companies. Ours can’t be left at mercy of
international oil companies.”
Another
user, Eguando, appealed to President Bola Tinubu to protect, liberate the
economy by making the Dangote Refinery work.
”Dear
President @officialABAT, the only refinery built by a Nigerian and African the
last 40 yrs in Africa, that will liberate our economy and that of Africa should
not fail. @AlikoDangote Refinery needs to get all the protection needed to
succeed.
“They
the IOCs have enjoyed exporting our Crude oil the last 60 years or more without
building one refinery each or collectively building one for us as a country to
reap the benefit, yet one Nigerian has taken the initiative and they are want
to everything to derail it.”
Ayodeji
Oluwadamilare added that “I am not even surprised
there are people who want that refinery to fail. They enjoy the status quo of
subsidy and don’t want it to end… Wicked humans… They will be shamed at last…”
Shimsun
said: “The IOCs must be brought to heel and
the corrupt civil servants at NMDPRA who are bent on keeping the system
poisonously inefficient should be made to answer for their actions.”
Oseni
Lanre stated that “The refinery has to work and it must now!”
It would be recalled that the Vice President, Oil and Gas at Dangote Industries
Limited (DIL), Devakumar Edwin, accused International Oil Companies (IOCs) in
Nigeria of doing everything to frustrate the survival of Dangote Oil Refinery
and Petrochemicals.
Edwin said the IOCs are deliberately and willfully frustrating the refinery’s efforts to buy
local crude by jerking up high premium price above the market price, thereby
forcing it to import crude from countries as far as United States, with its attendant
high costs.
According to him: “While the Nigerian Upstream Petroleum Regulatory
Commission (NUPRC) are trying their best to allocate the crude for us, the IOCs
are deliberately and willfully frustrating our efforts to buy the local
crude. It would be recalled that the NUPRC, recently met with crude oil
producers as well as refineries owners in Nigeria, in a bid to ensure full
adherence to Domestic Crude Oil Supply Obligations (DCSO), as enunciated under
section 109(2) of the Petroleum Industry Act (PIA). It seems that the IOCs’
objective is to ensure that our Petroleum Refinery fails. It is either they are
deliberately asking for ridiculous/humongous premium or, they simply state that
crude is not available. At some point, we paid $6 over and above the market
price. This has forced us to reduce our output as well as import crude from
countries as far as the US, increasing our cost of production.
From left: Members of Association of Energy Correspondents of Nigeria (NAEC) in Group Photograph With Vice President, Oil & Gas, Dangote Industries Limited, Devakumar Edwin, Group Chief Branding & Communication Officer, Dangote Industries Ltd, Anthony Chiejina, at the Dangote Oil Refinery and Petrochemical and Fertilizer Plant, Organised One Day Training for Energy Correspondents in Lagos on Friday 21st June 2024.
laments as Regulator (NMDPRA) continues to grant licences to import banned dirty diesel, jet fuel
Vice
President, Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin,
has accused International Oil Companies (IOCs) in Nigeria of doing everything
to frustrate the survival of Dangote Oil Refinery and Petrochemicals. Edwin
said the IOCs are deliberately and wilfully frustrating the refinery’s
efforts to buy local crude by jerking up high premium price above the market
price, thereby forcing it to import crude from countries as far as United
States, with its attendant high costs.
Speaking to a group of Energy Editors at a one-day training programme, organised by the Dangote Group, Edwin also lamented the activity of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in granting licences, indiscriminately to marketers to import dirty refined products into the country.
He said, “the Federal Government issued 25 licences to build refinery and we are the only one that delivered on promise. In effect, we deserve every support from the Government. It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 per cent of our production, have been exported. We are calling on the Federal Government and regulators to give us the necessary support in order to create jobs and prosperity for the nation.”
According to him: “While the Nigerian Upstream Petroleum Regulatory
Commission (NUPRC) are trying their best to allocate the crude for us,
the IOCs are deliberately and willfully frustrating our efforts to buy the
local crude. It would be recalled that the NUPRC, recently met with crude oil producers as well as refineries
owners in Nigeria, in a bid to ensure full adherence to Domestic Crude Oil
Supply Obligations (DCSO), as enunciated under section 109(2) of the Petroleum
Industry Act (PIA). It seems that the IOCs’ objective is to ensure that our
Petroleum Refinery fails. It is either they are deliberately asking for
ridiculous/humongous premium or, they simply state that crude is not available.
At some point, we paid $6 over and above the market price. This has forced us
to reduce our output as well as import crude from countries as far as the US,
increasing our cost of production…
“It appears that the objective of the IOCs is to ensure that Nigeria
remains a country which exports Crude Oil and imports refined Petroleum
Products. They (IOCs) are keen on exporting the raw materials to their home
countries, creating employment and wealth for their countries, adding to their
GDP, and dumping the expensive refined products into Nigeria – thus making us
to be dependent on imported products. It is the same strategy the
multinationals have been adopting in every commodity, making Nigeria and
Sub-Saharan Africa to be facing unemployment and poverty, while they create
wealth for themselves at our expense. This is exploitation – pure and simple.
Unfortunately, the country is also playing into their hands by continuing to
issue import licences, at the expense of our economy and at the cost of the
health of the Nigerians who are exposed to carcinogenic products.
“In spite of the fact that we are producing and bringing out diesel
into the market, complying with ECOWAS regulations and standards, licences are
being issued, in large quantities, to traders who are buying the extremely high
sulphur diesel from Russia and dumping it in the Nigerian Market. Since the US,
EU and UK imposed a Price Cap Scheme from 5th February, 2023 on Russian
Petroleum Products, a large number of vessels are waiting near Togo with
Russian ultra-high sulphur diesel and, they are being purchased and dumped into
the Nigerian Market.
“In fact, some of the European countries were so alarmed about the
carcinogenic effect of the extra high sulphur diesel being dumped into the
Nigerian Market that countries like Belgium and the Netherlands imposed a ban
on such fuel being exported from its country, into West Africa, recently. It is
sad that the country is giving import licences for such dirty diesel to be
imported into Nigeria, when we have more than adequate petroleum refining capacity
locally…”
It would be recalled that in May, Belgium and Netherland adopted new
quality standards to halt the export of cheap, low-quality fuels to West
Africa, harmonising its standards with those of the European Union. These
measures synchronise fuel export standards with the European domestic market,
specifically targeting diesel and petrol with high sulphur and chemical
content. Historically, these fuels, with sulphur content reaching up to 10,000
ppm, were exported at reduced rates to countries like Nigeria and other West
African consumers.
Belgium’s Minister of Environment, Zakia Khattabi, announced that his
country followed the Netherland, which in April 2023 also prohibited the export
of low-quality petrol and diesel to West Africa via the ports of Amsterdam and
Rotterdam. Khattabi emphasised that the Netherlands’ decision to restrict dirty
fuel exports had redirected the trade to Belgium, now used by oil producers and
traders to export gasoline with excessively high levels of benzene and sulphur.
“For far too long, toxic fuels have been departing from Belgium to
destinations including Africa. They cause extremely poor air quality in
countries such as Ghana, Nigeria, and Cameroon and are even carcinogenic,” said
Khattabi.
In September 2017, an investigation by an international organisation,
Public Eye revealed that polluted and toxic fuels were being exported on a
large scale from the ports of Rotterdam and Amsterdam for export to African
markets. As much as a quarter of the petrol and diesel available in West Africa
originates from the ports of Amsterdam, Rotterdam, and Antwerp. These fuels
contain sulphur and other pollutants, such as cancer-causing benzene, in
quantities up to 400 times the limits permitted in Europe. The Netherlands and
Belgium were enjoined to enforce regulations to shield millions of Africans
from exposure to toxic fuels.
The decision of the Nigerian Midstream and Downstream Petroleum
Regulatory Authority (NMDPRA), in granting licenses indiscriminately for the
importation of dirty diesel and aviation fuel has made the Dangote refinery to
expand into foreign markets. The refinery has recently exported diesel and
aviation fuel to Europe and other parts of the world. The same industry players
fought us for crashing the price of diesel and aviation fuel, but our aim, as I
have said earlier, is to grow our economy.
He noted that because the refinery meets the international standard as
well as comply with stringent guidelines and regulations to protect the local
environment, it has been able to export its products to Europe and other parts
of the world.
While appealing to the Federal Government and the National Assembly to
urgently intervene for speedy implementation of the PIA and to ensure the
interest of Nigeria and Nigerians are protected, he said: “Recently, the
government of Ghana, through legislation has banned the importation of highly
contaminated diesel and PMS into their county. It is regrettable that, in
Nigeria, import licences are granted despite knowing that we have the capacity
to produce nearly double the amount of products needed in Nigeria and even
export the surplus. Since January 2021, ECOWAS regulations have prohibited the
import of highly contaminated diesel into the region.”
In an unprecedented move, Dangote Petroleum Refinery has announced a further reduction of the price of diesel from 1200 to 1,000 naira per litre.
While rolling out the products, the refinery supplied at a substantially reduced price of N1,200 per litre three weeks ago, representing over 30 per cent reduction from the previous market price of about N1,600 per litre.
This significant
reduction in the price of diesel, at Dangote Petroleum Refinery, is expected to positively affect
all the spheres of the economy and ultimately reduce the high inflation rate in
the country.
