Mkpoikana Udoma
Port Harcourt — The Nigerian Government has stepped in to resolve the ongoing rift between billionaire businessman Aliko Dangote, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, over claims and counter claims between both parties.
On Monday night, the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, convened a high-level meeting with key stakeholders to address and resolve the issues surrounding the Dangote Refinery.
According to sources, the meeting was tense but productive, with Minister Lokpobiri emphasizing the need for cooperation and synergy among all stakeholders to ensure synergy in the oil and gas sector.
The Authority and Dangote have had a face off in the last few days, with the CEO of NMDPRA, Farouk Ahmed announcing that Dangote’s refinery was not licensed and that diesel from the refinery was substandard and of inferior quality, while accusing Dangote of seeking a monopoly in the sector.
“Dangote refinery is still in the pre-commissioning stage. It has not been licensed. We haven’t licensed them yet. I think they are at about 45% 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 petroleum products, especially of AGO and jet Kero, 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 markets because of monopoly.
“In terms of quality, currently the AGO quality in terms of sulphur is the lowest as far as West Africa requirement of 50 ppm. Dangote Refinery, as well as some major refineries like Waltersmith refinery, Aradel refinery, they are producing between 650 to 1,200 ppm. So, in terms of quality, their quality is much inferior than the imported products,” NMDPRA boss, Farouk Ahmed had said.
But in a swift reaction, the Chairman of Dangote Group, Aliko Dangote announced that his diesel was better than any product imported by NNPCL and requested for a laboratory test of diesel across the country, including his own product to confirm the quality.
Dangote who felt frustrated and offered to put his $20billion refinery up for sale, had earlier raised the alarm alleging that IOCs were frustrating his efforts to procure crude oil supplies locally for his 650,000bpd capacity refinery.
Key stakeholders at the meeting on Monday include, Mr. Aliko Dangote, Chairman of Dangote Group; Mr. Farouk Ahmed, Chief Executive Officer of the NMDPRA; Mr. Gbenga Komolafe, Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC; and Mr. Mele Kyari, Group Chief Executive Officer of NNPC Limited.
Lokpobiri during the meeting emphasized the importance of cooperation and synergy among all stakeholders to ensure the success and optimal performance of the oil and gas sector, crucial for Nigeria’s economic growth and energy security.
