The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that the Dangote refinery is not yet licensed to operate in Nigeria.
This statement was made by NMDPRA’s Chief Executive Officer, Farouk Ahmed, during a press briefing at the State House in Abuja on Thursday. Ahmed addressed misconceptions that the regulatory body was obstructing the refinery’s operations due to alleged issues with crude oil supply from International Oil Companies (IOCs).
According to Ahmed, the Dangote refinery is still in its pre-commissioning stage and has not received an operational license. He dismissed media reports suggesting that the NMDPRA is attempting to sabotage the refinery, asserting that there are significant concerns about the nationwide supply of petroleum products and the refinery’s current status.
Ahmed also criticized Dangote Refinery’s request to halt all importation of petroleum products, arguing that such a move would create a market monopoly and negatively impact the country’s energy security.
He noted that the refinery is approximately 45% complete and emphasized that relying solely on it for national supply could be problematic.
Additionally, Ahmed raised concerns about the quality of the petroleum products from Dangote Refinery, comparing them unfavorably with imported commodities. He claimed that the refinery’s products, including automotive gas oil (AGO) and jet fuel, have higher sulfur content than the standards required in West Africa, with values ranging from 650 to 1,200 parts per million (ppm), compared to the 50 ppm standard for imported products.
In response to these developments, Devakumar Edwin, Vice-President at Dangote Industries Limited, has accused IOCs of obstructing the company’s access to local crude oil, forcing them to rely on costly middlemen and pay inflated prices.
Edwin alleged that only one local producer, Sapetro, sells directly to Dangote, while other IOCs use non-Nigerian trading arms that add unnecessary costs. He also claimed that IOCs consistently offer local crude at a premium of $2-$4 per barrel above the official price set by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).