Aliko Dangote, Africa’s wealthiest man, has expressed willingness to relinquish ownership of his $19 billion oil refinery to the state-owned NNPC Limited.
Speaking amidst a new dispute with key equity partners and regulatory authorities, Mr. Aliko Dangote stated, “Let them (NNPCL) buy me out and run the refinery the best way they can.
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,” he told PREMIUM TIMES in an exclusive interview on Sunday.
The 650,000 barrel-per-day refinery, which became operational last year after a decade of construction, aims to reduce Nigeria’s dependence on imported fuel. The refinery has been running at just over half its capacity since January, hampered by difficulties in sourcing crude from international producers. NNPC, once a key partner, has delivered only 6.9 million barrels of oil to the plant as of May, far below the agreed supply, leading the refinery to seek crude from countries like Brazil and the US.
“NNPC Limited has a supply deal with us but has only paid for 7.2 per cent of their equity stake,” Mr. Dangote explained. “Starving the refinery of the feedstock required to keep it running means we’ve had to turn to other countries to bridge the gap.”
Mr. Dangote expressed frustration over the challenges faced by his refinery, despite its potential to solve Nigeria’s long-standing fuel crisis. “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 to my grave. Everything I do is in the interest of my country,” he said. “This refinery can help resolve the problem, but some people are uncomfortable with me in the picture. So I am ready to let go and let NNPC buy me out.”
The billionaire also shared that his friends and associates had cautioned him against investing billions of dollars into the Nigerian economy. “Four years ago, a very wealthy friend began to invest his money abroad. I disagreed and urged him to rethink in the interest of his country. He blamed his action on policy inconsistencies and the shenanigans of interest groups. Now, he taunts me, saying he warned me.”
Last month, Devakumar Edwin, vice president of oil and gas at Dangote Group, accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of allowing marketers to import substandard fuel into the country. In response, NMDPRA chief Farouk Ahmed claimed that diesel from Dangote Refinery and other local refineries had high sulphur levels, making them inferior to imported products.
During a tour of the refinery and Dangote Fertiliser Limited complex by members of the House of Representatives, including Speaker Tajudeen Abbas, lab tests revealed that Dangote’s diesel had a sulphur content of 87.6 ppm, significantly lower than the 1800 ppm and 2000 ppm found in imported samples. Mr. Dangote challenged the regulator to compare the quality of refined products from his refinery with those imported.
In light of the ongoing disputes, Mr. Dangote announced plans to halt his investment in Nigeria’s steel industry to avoid further accusations of monopoly. “Our board has decided not to pursue the steel business to avoid being labeled as monopolists,” he said.
The situation remains fluid, and the outcome of Mr. Dangote’s offer to sell the refinery to NNPC Limited could significantly impact Nigeria’s energy sector and its quest for self-sufficiency in fuel production.
Editor’s Note:
This exclusive interview with Aliko Dangote sheds light on the ongoing challenges and disputes surrounding the Dangote Refinery. As Africa’s wealthiest man navigates these complexities, his willingness to sell the refinery to NNPC Limited could have significant implications for Nigeria’s energy sector. We will continue to follow this story closely and provide updates as they develop.
