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PRESS RELEASE

Dangote: Our Refinery is having repeated orders from abroad

…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.

Dangote: Our Refinery is having repeated orders from abroad
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.

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News

Netizens condemn IOCs, saboteurs, say FG must protect Dangote Refinery

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.