Aliko Dangote, the wealthiest man in Africa, is considering selling his oil refinery to state oil giant, Nigerian National Petroleum Corporation (NNPC), due to ongoing regulatory challenges and a dispute with some partners.
Dangote’s refinery, which began operations last year, has a capacity of 650,000 barrels per day. He hoped to help reduce Nigeria’s reliance on imported fuel, potentially saving up to 30% of foreign exchange spent on imports.
However, the wealthiest African has fallen out of favor with the Nigerian political establishment and has had uncommon regulatory problems in his business experience in Nigeria.
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A dispute has arisen between the Dangote Group and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regarding the quality of diesel fuel in Nigeria. Devakumar Edwin, vice president of oil and gas at the Dangote Group, alleged that the NMDPRA permitted the importation of substandard fuel. Farouk Ahmed, chief of NMDPRA, claimed that diesel from Dangote’s refinery and other sources contained high sulfur levels, exceeding the West African standard.
Dangote has stated that he is committed to the refinery project’s success and willing to give up ownership if doing so will benefit the country. Since last year, the refinery has received about 7 million barrels of oil from NNPC for refining.
Despite the project’s total cost exceeding initial estimates at $19 billion, Dangote is prepared to step back. He is willing to let the NNPC buy him out and manage the refinery in the best possible way. His belief in the refinery’s potential to alleviate the fuel crisis, a longstanding issue since the 70s, is unwavering, despite some people’s discomfort with his involvement.
“Let them (NNPC) 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,” Dangote reportedly said.
Commitment to Nigeria’s Energy Sector
Despite facing challenges, Dangote’s oil and gas venture is making strides. The conglomerate is now venturing into the energy sector, with the refinery, currently operating at half capacity, expected to make a substantial impact on the Nigerian market with its first petrol rollout in August.
Dangote said, “As I approach my 70th birthday, I’m reminded that my legacy matters most. I’m dedicated to creating a lasting impact in Nigeria, and I’m confident that this refinery will be a game-changer for our nation’s energy sector.”
“Four years ago, one of my wealthy friends began investing abroad. I disagreed and urged him to rethink the situation in the interest of our country. He blamed his actions on policy inconsistencies and interest group shenanigans. He has been taunting me recently, saying he warned me and has been proven right,” Dangote added.
Dangote has also announced plans to halt his investment in Nigeria’s steel industry to avoid accusations of monopoly.
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 due to regulatory challenges and partner disputes. Despite setbacks, Dangote remains committed to Nigeria's energy sector.){kind=link}