Mr. Peter Obi, the presidential candidate of the Labour Party in the 2023 election, has thrown his weight behind Aliko Dangote, noting that his refinery should be supported and not vilified.
Obi, a former governor of Anambra State, said that the recent conflicts between Dangote Industries and some government agencies are deeply troubling.
Recall that the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, had last week, claimed that the Dangote Refinery is about at about 45 percent completion, and that the country cannot rely on it alone because of the implications it would have for energy security and monopoly.
He also claimed that Aliko Dangote, president of the Dangote Group had requested that importation of petroleum products, especially AGO or jet kero be stopped and all marketers be directed to the refinery, but explained that doing so would have implications for energy security.
Ahmed who spoke to journalists in Abuja, as captured in a now viral video, also noted that products from the Dangote Refinery and othe major refineries in the country are of inferior quality compared to imported ones.
“There are a lot of concerns about the supply of petroleum products nationwide, and the claims by some media houses that we are trying to scuttle Dangote Refinery is not so. Dangote Refinery is still in pre commissioning stage, we haven’t licensed them yet,” he had said.
“I think they are at about 45 percent completion. So, we cannot rely heavily on one refinery to feed the nation because Dangote is requesting that we should suspend or stop all importation of all petroleum products, especially AGO or jet kero and direct all marketers to the refinery, but that is not good for the nation in terms of energy security. And that’s not good for the nation because of monopoly.
“In terms of quality, currently the AGO quality in terms of sulphur is the lowest as far as West African requirement of 50 PPM. Dangote Refinery, as well as some major refineries like Waltersmith produce between 650 to 1200 PPM. So, in terms of quality, their quality is much inferior to the imported quality.
The claim has since generated heated contrversies, with many condemning the NMDPRA boss for what they say was an attempt to undermine the Dangote Refinery.
Lending his voice in a post on X on Tuesday, Obi, a former governor of Anambra State, noted that the issue "transcends political affiliations and personal grievances. It is fundamentally about Nigeria’s economy, future, and the well-being of its citizens."
According Obi, "Given Alhaji Dangote's significant contributions to Nigeria, it is crucial that these disputes are resolved swiftly. Government agencies should be directed to offer the necessary support for the seamless launch and operation of the Dangote Refinery and its associated enterprises. The refinery has the potential to generate approximately $21 billion in annual revenue and create over 100,000 jobs, with numerous additional positive impacts on the economy.
"Its strategic importance in addressing Nigeria’s fuel crisis, boosting foreign exchange earnings, and fostering economic growth cannot be overstated. The refinery is too vital to fail and must not be hindered, considering its crucial role in our national welfare.
"The Federal Government and its agencies need to recognize the significance of Dangote’s contributions. Alhaji Dangote is not just a businessman; he is a national and African brand symbolizing patriotism, commitment, and impactful entrepreneurship.
"Despite operating in a challenging business environment, he has established a remarkable industrial hub in Nigeria, encompassing over 15 sectors, including cement, sugar, salt, fertilizer, infrastructure, tomatoes, automotive, energy, petrochemicals, rice, poly sacks, real estate, mining, logistics, and maritime. Alhaji Dangote’s unwavering dedication to Nigeria's industrialization, job creation, and economic growth, despite adversities, warrants full support and protection. With economic indicators like unemployment, inflation, forex scarcity, and debt worsening, every sensible and patriotic government should regard enterprises like Dangote Industries as national treasures, meriting robust support and protection.
"In the interest of Nigeria and its citizens, as well as Africans at large, I urge the Federal Government and its agencies to provide Dangote Industries, especially the refinery, with all necessary support.
"The success of Dangote is intrinsically linked to the success of Nigeria and Africa; conversely, its failure would be a significant setback for both Nigeria and the continent."
This whole issue on Dangote creating bad waves for Nigeria globally - Adesina
Also lending his support for Dangote, Akinwunmi Adesina, president of the African Development Bank (AfDB) argued that the accusation of monopoly against the Kano State born businessman is unfair, as according to him, "monopoly often exists where there are high barriers to entry or high capital costs."
Continuing, Adesina said, "How many individuals or companies can do railways? How many can do refineries of the scale of Dangote Refineries?
"In a nation that has been importing refined petroleum products for several decades, the abnormal simply became very normal.
"No smart investor would make a $19.5 billion investment and want it to be undermined by importers.
"To manufacture is extremely expensive and risky. This is even more so in Nigeria, given the very challenging business and economic environment, fraught with policy uncertainties and policy reversals, and where the self-defeating default mode of “simply import it” is always so easily rationalized and chorused to solve any problem.
"Competition is good for everyone. But is Dangote refineries anti-competitive? What is the evidence?
"Has Dangote refineries prevented any other company from setting up refineries? Why have others not done so? How come they have not done so for several decades? Was it Dangote that held them back?
"But Dangote refineries surely cannot be asked to ‘compete’ with importers of petroleum products.
"That is not competition. Let the importers set up local refineries and compete by refining in Nigeria. That is fair and justified competition.
"We cannot and must not undermine, disparage or kill local industries, talk less of one that is of this scale — a jewel of industrialisation in Nigeria.
"It is more than simply delivering the cheapest product to the market. It is about domestic supply security, driving (and yes, protecting) globally competitive industries, maximizing forward and backward linkages in the local economy, job creation, reducing forex expenses and shoring up the Naira.
"We must not be myopic.
"This whole disparaging of Dangote is uncalled for. It is self-defeating. And it is very bad for Nigeria. Who will want to come and invest in a country that disparages and undermines its own largest investor?
"Investing is tough. Pettiness is easy.
"It sadly sends a signal that the price for sacrificing for Nigeria is to get sacrificed."
Dangote dismisses allegations
Meanwhile, Aliko Dangote, has dismissed an allegation that his refinery produces substandard petroleum products, noting that his products are much better than imported ones.
Dangote spoke on Saturday during the visit of the leadership of the House of Representatives, led by the Speaker, Tajudeen Abbas, and his deputy, Benjamin Kalu, to the Dangote Refinery in Lagos State.
He said there was a need for an investigation to be carried out to determine if there are some saboteurs in the oil sector or to find out if there are ulterior motives to demarket his business.
Africa’s richest man also said the best way to determine the quality of products being imported and sold to Nigerians is by going to the filling stations and buying and testing them.
“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.”
Refuting the allegation made by Ahmed, that petroleum products from his refinery are substandard, Dangote said his products are better than imported ones, and they comply with the highest standards.
Dangote, who provided evidence to back up his claim, said diesel bought from two filling stations and that from his refinery was tested at the refinery’s laboratories using the ASTM D4294 method.
The Dangote Group President said the diesel, which was one of the best in terms of quality at the time the refinery started, had a sulphur content of between 600 parts per million and 650 ppm.
While stating that the quality of his diesel has improved as the sulphur content has reduced to 87 ppm, Dangote added that by next Monday, it will reduce to 50 ppm.
He further said the result does not only proof the reality of products from his refinery, but it also shows that substandard petroleum products are being imported into the country.
Dangote noted that the sulphur content of the diesel bought from the two filling stations was over 1,800 ppm and 2,600 ppm, respectively.
He said, “Our quality is about 600 to 650 ppm and is one of the best in terms of quality at that time when we started. But as of today, we’re at 87 ppm.
“I want to plead with the regulator to come at any time, whether Sunday or Monday or take the sample, and I guarantee you before he gets here, our ppm will be even below 10.
“When we’re coming here, His Excellency, the Speaker said, can we please wait to pick up samples from two filling stations? And also when we get into our plant, they will pick a sample to check the results. The results are actually out, and I’m going to share the same results with you.
“The sample from TotalEnergies’s diesel showed 1,829ppm sulphur concentration. The sample from Matrix Retail showed 2,653 ppm. Matrix was 61 below 66, and Total is 26 flashpoint. Our flash point showed 96. If you want to do the rest, we can run it at any given time.
“Today I want to announce to Nigerians that our parameters today are extremely, very good parameters. By the end of next week, we should be on 50 ppm and by August, it should be down to 10 ppm.”
He also called on the House of Representatives to investigate the quality of laboratories being used by the NMDPR to test imported products and compare that with the one at his refinery.
Dangote informed the lawmakers that he was also open to independent testing of his refinery’s products as that would only attest to their quality while exposing the problem with some of the products being sold by other players in the sector.
The businessman also dismissed monopoly claims, insisting that the Dangote Group did not receive any special incentive when the refinery was being built.
He said, “If you look at all our operations at Dangote (Group), we add value; we take local raw materials and turn them into products, and we sell. We have never consciously or unconsciously stopped anybody from doing the same business that we are doing.
“When we first came into cement production, it was only Lafarge that was operating here in Nigeria…Nobody ever called Lafarge a monopoly.
“Monopoly is when you stop people, you block them through legal means. No, it is a level playing field whereby whatever Dangote was given in cement, for example, other people were given because some of them even got more than us.
“In the refinery, we did not, and I repeat, we did not collect one single incentive from the Federal Government of Nigeria or even Lagos State. Yes, the Lagos State gave us a good deal, but we paid $100m for the land. It wasn’t a free land; we paid for it.
“Majority of the population are with us. So, we are not discouraged; we will continue what we are doing.”
He also announced that the company would abandon its plans to enter Nigeria’s steel industry to prevent accusations of attempting to monopolize the market.
Dangote explained that going into the steel industry would involve encouraging the importation of raw materials from overseas, which contradicts the firm’s core mandate.
He said, “You know, about doing a new business which we announced, that is, the steel. Actually, our own board has decided that we shouldn’t do the steel because if we do the steel business, we will be called all sorts of names like Monopoly. And then also, imports will be encouraged. So we don’t want to go into that.”
Dangote, however, urged other Nigerians to invest in the industry to help boost the country’s economy.
Dangote added, “Let other Nigerians go and do it. We are not the only Nigerians here. There are some Nigerians with more cash than us. They should bring that money from Dubai and other parts of the world and invest in our own fatherland.”
In his remarks, Speaker Abbas said going by the presentation and the contradictory claims, there was a need for an investigation.
“I don’t know how we have this contradiction of two players representing the public and private sector. I think it is something we need to investigate further to find out if there are ulterior motives,” he said
Some NNPC personnel, oil traders have blending plant in Malta - Dangote
In a related development, Aliko Dangote, has alleged some personnel of Nigerian National Petroleum Company (NNPC) Limited, oil traders and terminals have opened a blending plant in Malta.
An oil blending plant has no refining capability but can be used to blend re-refined oil with additives to create finished lubricant products.
Dangote who spoke at the house of representatives on Monday, said the areas of the blending plants are known.
“Some of the terminals, some of the NNPC people and some traders have opened a blending plant somewhere off Malta,” he said.
“We all know these areas. We know what they are doing.”
Addressing the drop in diesel prices, the billionaire said the diesel produced locally at 650 parts per million (ppm) and 700 ppm is of better quality than imported fuel.
According to Dangote, many vehicle issues can be traced back to the “substandard” imported fuel.
He urged the leadership of the house of representatives to set up an independent committee to verify the quality of petrol available at filling stations.
“I want you to set up a committee that will come with every representative headed by your chosen honourable member to come and lead in taking samples from filling stations because I must tell you today that all the test certificates that people are busy floating around, where are the labs? Even if they have the labs, I can tell you they are fake certificates,” he said.
“The real one that you now know that they are right is to take from the filling station and also come and take from our production line. Now, you will be able to tell Nigerians that this is it.”
On Monday, the house of representatives joint committee on petroleum resources (downstream and midstream) launched a probe into claims that local refineries, including the Dangote Petroleum Refinery, produce inferior products.
The committee is also investigating the allegations that the international oil companies (IOCs) in Nigeria are frustrating the survival of the Dangote refinery.
Minister of petroleum intervenes
Meanwhile on Monday, Heineken Lokpobiri, minister of state petroleum resources, intervened in the back and forth after having a meeting with Aliko Dangote and Farouk Ahmed, the NMDPRA CEO.
Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Mele Kyari, group CEO of the Nigerian National Petroleum Corporation (NNPC) Limited were also at the meeting.
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