MONOPOLY: Can Dangote Refinery Survive the Conspiracy of ‘Oil Cabals’?

MONOPOLY: Can Dangote Refinery Survive the Conspiracy of ‘Oil Cabals’?

The $20 billion Dangote Refinery is in the news again
but this time for a surprising and unbelievable reason.

Nigerians anticipated relief with the prospect of both the Dangote and Port Harcourt refineries operating at full capacity.

However, the dream of self-sufficiency seems to be on hold as the Dangote refinery faces challenges.

The @DangoteGroup has accused international oil companies (IOCs) of sabotaging its efforts to purchase crude oil.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has downplayed these claims.

Further complicating the situation, NMDPRA chief Farouk Ahmed has alleged that the Dangote refinery’s diesel is inferior to imported ones, with a higher sulfur content.

He argued that relying solely on the Dangote refinery would create a monopoly and harm energy security. Ahmed also mentioned that the refinery is still in the pre-commissioning stage and not yet licensed.

Nigerians reacted with outrage, accusing Ahmed of protecting the interests of those profiting from fuel imports. They demanded an investigation and his potential removal. Public commentators like Olusegun Ifade echoed this sentiment, stating: “Farouk Ahmed’s statement that Dangote refinery product is inferior compared to imported ones and shouldn’t be relied on is clearly sabotage! He must be part of the cabal in the oil industry working to see the end of Dangote refinery. He should be sacked! #SackFaroukNow,” he said.

Similarly, another public commentator, Olatunji Olalekan, asserted that Mr Ahmed’s statement was meant to scuttle and sabotage the refinery. He asked the federal government to find out why he made such a “ridiculous statement.”

Experts Weigh In

Experts have called for a resolution to the conflict between the Dangote refinery and the NMDPRA. Chinedu Amah, founder of Spark Nigeria, highlighted the Dangote refinery’s advanced technology and questioned the rationale behind continued reliance on imports. He said: “The more the federal government allows Dangote to keep importing crude oil and keep importing petrol, then how can our economy pick up? The Dangote refinery is a more advanced modern refinery than all our other refineries, so it can distillate and treat most of the crude oil to a standard sulfur level. All the noise they are making is politics to cover and give flimsy reasons for their continuous importation.”

Mazi Colman Obasi, president of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), emphasized the need for all parties to collaborate for the benefit of the economy.

An anonymous expert pointed out that Ahmed’s remarks could discourage foreign investment, citing the government’s disparagement of a significant investment project.

He said: “Our government wants foreign investors to bring their monies into this country. Yet, the same officials are on National TV disparaging a $20 billion investment. Imagine stating on TV that the products from a refinery in your country are inferior to imported ones, demarketing a locally owned private business.