DANGOTE OFFERS TO SELL $20BILLION REFINERY

The Chairman of Dangote Groups, Aliko Dangote, has offered to sell the $20 billion Dangote Refinery to the Nigerian National Petroleum Corporation (NNPC) Limited.

The Africa’s richest man disclosed this in an interview on Sunday, July 21, 2024.

Dangote alleged that some people who are hell-bent on frustrating his efforts to bail Nigeria out of its present predicament of importing fuel, have labeled him a monopolist.

“…I am ready to let go, let the NNPC buy me out, run the refinery,” he said.

“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.

“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, and run the refinery.

“As you probably know, I am 67 years old, in less than three years, I will be 70. I need very little to live the rest of my life. I can’t take the refinery or any other property or asset to my grave. Everything I do is in the interest of my country,” Mr Dangote told PREMIUM TIMES.

“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, and run the refinery. At least the country will have high-quality products and create jobs,” he added.

Mr Dangote said the obstacles his refinery is facing seem to have vindicated friends and associates who counseled him to tread with caution as he pumped billions of dollars into the Nigerian economy.

“Four years ago, one of my very wealthy friends began to invest his money abroad. I disagreed with him and urged him to rethink his actions in the interest of his country. He blamed his action on policy inconsistencies and shenanigans of interest groups. That friend has been taunting me in the past few days, saying he warned me and that he has been proven right,” the businessman said.

Dangote’s reaction came after, the Chief Executive Officer of NMDPRA Farouk Ahmed in an interview stated that Dangote was trying to entrench monopoly in the oil and gas sector, that the products are inferior, and that the 650,000-bpd refinery is still in the pre-commissioning stage and about 45 percent completed.

Ahmed added that the country cannot risk dependence on Dangote Refinery alone by suspending petroleum products, especially Automotive Gas Oil and Dual-Purpose Kerosene, DPK.

He said: “That is not so. Dangote Refinery is still in the pre-commissioning stage. It has not been licensed yet. We haven’t licensed them yet. I think they are about 45 percent to completion.

“We cannot rely on one refinery to feed the nation, because Dangote is requesting that we suspend or stop imports, especially of AGO and DPK, and direct all marketers to his refinery. That is not good for the nation in terms of energy security, and it is not good for the market because of the monopoly.”

Ahmed said that in terms of quality, Dangote’s current AGO (diesel) suffers from the lowest quality in terms of sulfur content, falling short of West Africa’s requirement of 50 parts per million (PPM).

“Dangote Refinery, as well as some modular refineries like Watersmith Refinery and Aradel Refinery, are producing between 650 and 1,200 PPM. Therefore, in terms of quality, their products are much, much, more inferior to imported ones,” he stated.

The Dangote Refinery, located in the Lekki Free Zone near Lagos, Nigeria, is one of the largest oil refineries in the world. Initiated by the Dangote Group, it aims to meet Nigeria’s domestic demand for refined petroleum products, reducing the country’s dependence on imported fuel.

The refinery’s projected capacity is 650,000 barrels per day, which is expected to transform Nigeria from an importer to a net exporter of refined petroleum products.

Construction of the refinery began in 2016, with the project involving complex engineering and massive investments. The refinery includes a petrochemical plant and a fertilizer plant, making it a significant industrial hub in the region.

The impact of the Dangote Refinery extends beyond the oil sector. It is anticipated to create thousands of jobs and stimulate economic growth in Nigeria. By producing a surplus of refined products, it aims to stabilize fuel prices and ensure a steady supply for local markets, contributing to energy security.