The global community has been observing with sustained interest the needless drama being orchestrated by some powerful vested interests to frustrate the good example set by Nigeria’s leading investor and foremost African entrepreneur, Aliko Dangote, who has defied all formidable odds to build a privately-owned world-class, ultramodern petroleum refinery in Nigeria.
The recent outburst by the chief executive of Nigeria Midstream and Downstream Petroleum Regulatory Authority, Adamu Farouk, against the 650,000 bpd Dangote Refinery and its founder was shocking as it created bad waves for Nigeria globally.
Dangote’s $20 billion refinery started to operate this year, but the government regulator claimed it is producing fuels that are inferior to imports, due to their high sulphur contents.
Pointedly, Dangote refuted this allegation, and claimed the refinery produces the best diesel in Nigeria.
He referenced laboratory tests by lawmakers that found sulphur content at 88ppm, compared to 1,800-2,000ppm in samples of imported diesel.
The regulator refuted this, claiming all diesels imported since June 2024 were below 50ppm in line with the law.
Dangote went further to accuse the Nigerian National Petroleum Company Limited of issuing licenses to marketers who import extremely high sulphur diesel from Russia and dump it in the Nigerian market.
He claimed this was a strategy to push the Dangote Refinery to sell fuels internationally. Dangote also claimed that the NNPCL and international oil companies have made it difficult for his refinery to purchase crude oil in Nigeria, by engineering artificial shortages, charging above the international market price, and directing them to international trading arms.
Dangote claims this forced them to import oil from the US, Brazil and elsewhere. He stated that this is not just business rivalry, it is pure economic sabotage.
The unwarranted efforts to demarket the $20 billion Refinery by the regulatory body could deter both local and international investors and undermine government’s efforts to stabilise fuel prices and ensure availability in the country.
For 30 years, the vested interests that run the Nigerian National Petroleum Corporation (now NNPCL) have ensured that the nation’s four refineries were in comatose, incapable of refining the badly needed petroleum to meet domestic consumption.
“This remarkable business feat, which ordinarily should instantly earn him national encomiums and accolades, has paradoxically ignited the malicious fury of enemies of Nigeria who are strategically located in the oil and gas sector of the economy.”
Instead of Nigerians appreciating the Dangote Refinery for its efforts in saving the country from continued importation of refined petroleum products, some vested interests were bent on frustrating its operations.
Dangote Refinery, which is reputed to be the biggest single-train refinery in the world, is a technological marvel that showcases the most advanced innovation in the trade field and is also a symbol of our national pride.
This remarkable business feat, which ordinarily should instantly earn him national encomiums and accolades, has paradoxically ignited the malicious fury of enemies of Nigeria who are strategically located in the oil and gas sector of the economy.
Nigeria has become the object of global ridicule as it is the only OPEC member nation without refining capability and heavily dependent on mass importation of oil and other derivatives.
Nigerians, who mostly bear the brunt of escalating fuel pump prices, frequent fuel shortages, would no longer fold their arms and allow a few well-entrenched powerful individuals to continue holding the economy hostage.
The needless controversy over the Dangote Refinery is a national and global embarrassment for our country.
It shows Nigerians up to the world as unserious at a time when public officials traverse the world seeking foreign investment.
Who will take the country seriously when its business environment, despite its potential, is evidently awash with political and other risks and the market is increasingly impoverished?
There is no prudent investor who would risk a $20 billion investment only to be undermined by importers because to manufacture is extremely expensive and risky.
This is even more so in Nigeria, given the very challenging business and economic environment, fraught with policy uncertainties and policy reversals, and where the self-defeating default mode of ‘simply import it’ is always so easily rationalized and chorused to solve any problem.
There are few questions begging for answers on this pointless brouhaha.
Has the Dangote Refinery prevented any other company from setting up refineries? Why have others not done so? How come they have not done so for several decades? Was it Dangote that held them back?”
It is our point that the Dangote Refinery should not be expected to compete with importers of petroleum products.
Instead, we urge importers to establish local refineries to foster fair competition within Nigeria.
This whole attempt at disparaging the Dangote Refinery is uncalled for. It is self-defeating, and it is very bad for Nigeria.
Who will want to come and invest in a country that disparages and undermines its own largest investor?
The negative implication of disparaging the Dangote Refinery is that it will discourage potential future investments in Nigeria.
The global community sees this gigantic business stride as the dawn of prosperity for Nigeria and Nigerians.
The refinery has the potential to save Nigeria significant foreign exchange currently spent on offshore refining, which could alleviate the country’s foreign exchange challenges.
All government agencies must provide support for the Dangote Refinery because it is too vital to fail considering its crucial role in our national welfare.
