Africa’s richest man, Aliko Dangote, said he is willing to sell his multi-billion-dollar oil refinery to NNPC Limited, Nigeria’s state-owned energy company, amid unresolved differences with the federal government.
The 650,000 barrel-per-day refinery, which began operations last year after a decade of construction, has been facing challenges, including difficulties in sourcing crude oil from international producers.
NNPC, which has a supply deal with the refinery, has only delivered 6.9 million barrels of oil since last year, forcing the refinery to seek alternative sources from countries like Brazil and the US.
Dangote has expressed frustration with the obstacles his refinery is facing, stating that he is ready to let go of the project if it will benefit the country.
“Let them (NNPCL) buy me out and run the refinery the best way they can. They have labelled 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,” Dangote said in a recent interview.
The interview was granted on Sunday to Premium Times.
Dangote, who has long dominated Nigeria’s cement, salt, and sugar industries, ventured into oil and gas, a move that has proven challenging.
The refinery cost $19 billion to build, more than double the initial estimate. It promises to reduce Nigeria’s reliance on imported fuel and save up to 30% of the foreign exchange spent on imports.
It is understood that the refinery, set to release its first batch of petrol to the Nigerian market in August, has been operating at just over half its capacity due to difficulties in sourcing crude oil from international producers.
“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,” Dangote said.
“This refinery can help resolve the problem, but it seems some people are uncomfortable with me 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.
Dangote’s decision comes after facing several obstacles, which he believes validate the caution advised by friends and associates when he invested billions into Nigeria’s 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 action in the interest of his country. He blamed his action on policy inconsistencies and interest groups. That friend has been taunting me in the past few days, saying he warned me and that he has been proven right,” Dangote said.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Group, recently alleged that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is permitting the importation of substandard fuel into the country. In response, NMDPRA’s CEO, Farouk Ahmed, countered that diesel produced by Dangote’s refinery and other similar facilities, such as Waltersmith and Aradel, contains high levels of sulfur, potentially damaging vehicle engines and the environment.
However, during a recent tour of the Dangote Petroleum Refinery and Dangote Fertilizer Limited complex by members of the House of Representatives, Aliko Dangote disputed the regulator’s claims. Lab tests conducted during the tour revealed that Dangote’s diesel contains a mere 87.6 ppm of sulfur, significantly lower than the 1800 ppm and 2000 ppm found in imported samples. Dangote challenged the regulator to conduct an impartial comparison of the quality of his refinery’s products versus imported ones, advocating for a fair assessment to determine the best interests of Nigeria.
Also during the tour, Dangote announced that he would halt his investment in Nigeria’s steel industry to avoid accusations of monopoly.
