By Suleiman UMaru
The last may not have been heard about the controversy between Aliko Dangote, who had acquired nOrth American country of the United States, 100 million dollars land at Lekki Free Trade Zone from the Lagos state government, to build a $19 million refinery with a capacity to process 50,000b/d. The cabal in NNPCL ,and the nation’s oil industry ho may not have known that the Multi-billionaire Kano state born business mogul , championed by Farouk Ahmed, Chief Executive Officer , CEO, of Nigerian Midstream and Downstream Petroleum Regulatory Authority, appears to have stirred up the honest nest to frustrate the Dangote’s refinery project and force him to abandon it.
Ahmed, the NMDPRA, who was said to have the backing of Mele Kolo Kyari, Group Managing Director, NNPCL, had said that the diesel produced by the Dangote refinery was inferior to the ones imported into the country , noting that it had higher content of Sulphur, put at between 650 and 1,200pm.
The NMDPRA, helmsman may have given the NNPCL, Authorities, a cause to cheer when he said that the Nigerian Government would not stop the importation of Premium Motor Spirit, PMS, popular, Petrol and Automotive Gas Oil, AGO, or diesel into the country. He was emphatic that that Nigeria cannot depend on the Dangote refinery to meet the country’s products demand.
Senator Ojudu Babafemi , a one-time Special Adviser on Political Affairs to former Vice President, Yemi Osinbajo, u ring President Muhammadu Buhari’s Administration, who appears to be privy to the antics of the oil cabal, that still want to be controlling the country’s economy and ensure that the existing the local refineries located in PortHacourt, Warri , and Kaduna, works in bits and fits, to sustain the importation of products of Nigeria. had said that Dangote had committed no offense.
The Ekiti state born Senator of Federal Republic of Nigeria, had said that the allegation of the NMUDPRA, boss against the Dangote refinery was a mere ploy by the entrenched cabal in the nation’s oil industry to fight the business mogul for daring to venture into their own area of business –the oil economy
Describing the nation’s oil sector as a notoriously murky sector and the game change with Dangote’s intervention, he had said that this may have forced the cabal who felt threatened to break the local investor’s vision.
The Leadership of the House Representatives may not have found NMUDPRA, Authorities plot to get the for the Nigerian Government to reject Dangote refinery petroleum Products production for the local market on the allegations of ultra –low Sulphur, funny that it has called on the President to suspend the NMDPRA, boss.
Appealing to the government to thoroughly investigate the NMUDPRA boss, claims, against the Dangote Multi-million dollar refinery, noting that fuel quality can impact engine hardware, the House had said that the reason why ultra-low sulphur diesel is recommended for all types of power plants, storage tanks, industrial facilities, fleets and heavy equipment and even hips .
He House had said that going by the risks associated with sulphur , countries across the world have taken taken steps to regulate it by setting standards that require maximum reduction of emissions of this chemical compound which diesel producers are expected to adhere to.
The House had wondered why Ahmed, who many believe is acting out a script, should hold it against the Dangote refinery when it had permited the local refiners to produce diesel with sulphur content of up to 650 percent per million until January , 2025, as approved by The Authority of Heads of State and Government of the Economic Community of West African States, ECOWAS.
The Nigerian Government may have bowed to pressure from the House Leadership to investigate crude shortages to local refineries and importation of dirty diesel issues , at the heart of the rift between Dangite refinery and NMUDPRA. Already the Committee constituted by the House to investigate alleged importation of dirtier diesels into the country and why local refineries including the Dangote refinery, described as thesecond largest in the world are unable to get adequate crude oil supplies from NNPCL and Multi-National Oil Companies, MNOC, were said to have started their job.
A member of the House Committee had said that the investigation will proceed in phase beginning with the allegation of production and importation of substandard products into the country and unavailability of crude oil to the local refineries .
The House which does not have the power to implement the report of the Committee that had been set up to look into the conflict of interest beteen Dangote and NMUDPRA, is expected to present its report to Committee of the whole House, which in turn is expected to present the recommendations to the President for approval and implementation.
Between May 202 and now, the Dangote refinery, particular, had faced many challnges ranging from inadequate crude oil upplies from the NNPCL AND MNOCs, sabotage that had do with fire outbreak in the refinery and low investments by NPCL, in the refiner to further deter its production level.
NNPCL, had initial interest in the Dangote refinery which amounts to $2.76 billion equity contribution but yet to fulfill its obligation to the multi-billion project. At present the nation’s oil octopus had reduced its stake in the refinery to .2%, which Olufemi Soneye, the Company’s spokesperson had attributed to its periodic assesses of its investment portfolio to ensure alignment with its strategic goals.
He had aid that the decision by the Company to cap its equity participation at the paid –up sum was made and had been Communicated to Dangote refinery Authorities several months ago, but many see it as part of the ploy to deter the project which is already 45% completed.
There is no gain saying the fact that Nigeria, with all its state-owned refiners with a capacity to process 445,000 b/d which are non-operational is heavily reliant on imported Petroleum products , with state –run NNPC being the major importer of the products which it sells to both the major and independent markers accros the country.
The fear that the Dangote refinery on completion could bring to an end a decades-long petroleum products trade from Malta Island and Europe to the African countries worth $17 billion, particular, Nigeria, the most populous country in the Continent.
This appears to have piled up pressure on the European refineries and blending plants, off Malta Island as many of them stand the risk of closure from the heightened competition that the Dangote refinery may pose to the.
Note that about a third of Europe’s 1.33 million b/d average products exports in 2023 alone, a major chunk was said to have gone countries in the West African sub-region, particular, Nigeria, than any other region.
There are fears in energy circles that the loss of the West African market by the European refineries and Malta blending plants , allegedly owned by NNPCL officials, the small set refineries, put at about 90, in Europe and Malta Island, that do not have the kit to upgrade their gasoline to European and US specifications because of the more stringent environmental standards for other markets may wind down operations.
There are indications that as much as 00,000b/d to 400,000b/d of refining capacity plants in Europe and Malta Island is currently stand he risk of closure because of rising gasoline production. Reports ha it that in May 2024, European Union, EU and United Kingdom, UK, gasoline exports to the West African sub region dropped to an eight low of 8,000 b/d . dollar refinery Energy experts had said that European refineries and Malta Island blending plant loss of market share to Lagos based multi-billion would remain problematic to them.
Given the gang up by the oil cabal to sabotage the Dangote efinery,Adebayo Shittu, a former minister of Communications during he Buhari’s Administration had urged the government to give total support to the Dangote refinery to succeed.
Appearing on Channel’s Television recently , the former minister, who could not hide his feelings had said That ‘’the success of the 650,000b/d Dangote refinery facility will wean Nigeria’s purse of decades-long subsidies on petroleum products.
Akinwumi Adesina, a former minister of Agriculture and Rural Development and now President, Africanlopment Bank, AfDB, who has thrown his weight behind Dangote, President, Dangote Industries, had faulted the claims of monopoly against the multi-billionaire investor, urging the government not to kill local industries because of pressure from the international Community.
An aggrieved AfDB, President had queried: How many individuals or local companies can build railways? How many can can build refineries of the scale of Dangote refineries? He noted that in a nation that has been importing refined petroleum products for several decade, in which the abnormal has become the normal , had resulted why the cabal are him back.
According to him, no investor, anywhere in the world, would make $19.5 billion investment and want it to be undermined by importers. ‘’We must not undermine, disparage and kill local refineries, talk less of the Dangote refinery scale , a jewel of industrialization in Nigeria’’, he had said.
He was said to have told those that cares to listen that the controversy between Dangote and NMUDPRA, ‘’is more than delivering the chipest product to the market, insisting that ‘’it is about domestic supply security , driving and protecting globally competitive industries, maximizing forward and backward linkages in the local economy, job creation, reducing forex expenses and shoring up the naira’’ .
He had said that the whole idea of disparaging Dangote refinery by NMUDPRA and NNPCL, was ‘’uncalled for , self-defeating and very bad for Nigeria’’. He has asked: who will come and invest in a The disparaging of Dangote by relevant agencies that should back it may have informed why Brice Oligui Nqguema, President of Gabon had invited the President Dangote Industries to explore the investment opportunities in the country that disparages and undermines its largest investor? Country known for its abundant oil resources.
During their meeting in Libreville on Wednesday, July, 24, 2024, the Gabonese President was said to have emphasized potential investments in cement and fertilizer production, specifically urea and phosphate.
He may have gladdened the heart of the Nigerian investor who had been disparaged by his country -men that the collaboration with the Dangote Industries would bring significant mutual befits, including ‘’job creation, technology transfer and enhanced industrial capacity’’.
