Tinubu’s govt accuses Dangote Refinery of producing inferior fuel

Dangote Refinery has been accused by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of producing inferior products, without proof – vindicating the allegation by owner Ali Dangote that his effort to end fuel imports and conserve funds for Nigeria’s treasury is being sabotaged by elements within and outside the country.

 

Even Bola Tinubu, who doubles as President and Petroleum Minister, is not publicly known to take any proactive action to demonstrate sincere commitment to the progress of Dangote Refinery, built at a cost $20 billion, with capacity to end fuel imports and save funds spent on foreign exchange (forex).

 

NMDPRA Executive Officer Farouk Ahmed alleged in an interview with journalists in Abuja, broadcast on TVC (a station owned by Tinubu), that petroleum products from Dangote Refinery, those from Watersmith, Aradel, and other modular refineries, are inferior compared to imported ones.

 

He denied reports folks with vested interest in the oil and gas sector are trying to scuttle Dangote Refinery, saying the 650,000 barrels per day facility has not been issued an operational licence by the NMDPRA.

 

Even though Dangote Refinery was commissioned with fanfare in May 2023 by former President Muhammadu Buhari, Ahmed insisted it is still in the pre-commissioning stage and about 45 per cent completed.

 

He said Nigeria cannot risk dependence on Dangote Refinery by suspending the importation of petroleum products, especially Automotive Gas Oil (diesel) and Dual Purpose Kerosene (DPK).

 

“Dangote Refinery is still in the pre-commissioning stage. It has not been licensed yet. We haven’t licensed them yet. I think they are about 45 per cent to completion,” Ahmed declared.

 

“We cannot rely on one refinery to feed the nation, because [Ali] Dangote is requesting that we suspend or stop imports, especially of AGO and DPK, and direct all marketers to his refinery. That is not good for the nation in terms of energy security, and it is not good for the market because of the monopoly.

 

“Dangote Refinery, as well as some modular refineries like Watersmith Refinery and Aradel Refinery, are producing between 650 and 1,200 PPM [parts per million]. Therefore, in terms of quality, their products are inferior to imported ones.”

 

Dangote Group President Aliko Dangote previously announced the refinery will begin domestic petrol in August 2024.

 

Dangote Industries Limited (DIL) Vice President Devakumar Edwin has also alleged that most imported fuel products are substandard and accused international oil companies (IOCs) of frustrating Dangote Refinery by selling crude oil at a higher price in Nigeria.

 

However, the NMDPRA dismissed Edwin’s claim of substandard imported petroleum products.