The Nigerian Federal Government, through the Minister of Petroleum Resources, appears to be moving to mitigate the damage to Nigeria’s business climate profile created by the ongoing faceoff between Dangote Refinery and some government regulators.
Aliko Dangote, the president of Dangote Group and one of Nigeria’s biggest private investors, has been complaining of a conspiracy blocking his attempts to obtain adequate crude oil from domestic sources and import it.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA CEO Farouk Ahmed, claimed that Dangote was not fully licensed for operation and that the company was producing poor-quality products. He said that the government needed to stop the refinery from becoming so big that it became a monopoly.
There is cold war between Dangote & Tinubu. No one will build such a massive refinery, & not have their license issued. FG said the Dangote Refinery is only 45% completed, confirming David Hundeyin’s position. Nigeria’s Crony Capitalist-in-Chief will have to join our protest. pic.twitter.com/HrhEDrXd7G
— NEFERTITI (@firstladyship) July 19, 2024
Dangote refuted claims that his diesel product was below international standards, and the Nigerian House of Representatives promised to investigate.
Recognizing the potential damage to Nigeria’s investment climate image abroad, the government appeals to dial back its stance. The Minister of State for Petroleum Resources, Sen. Heineken Lokpobiri, took a proactive step. He convened a high-level meeting with key stakeholders today to address the issues surrounding the Dangote refinery.
The meeting underscored the crucial role of cooperation and synergy among all stakeholders in the Oil and Gas sector. This collective effort is essential for ensuring the success and optimal performance of the sector, which is vital for Nigeria’s economic growth and energy security.
The details of the meeting’s outcome were not disclosed to the public, but it is believed that the impasse may have been resolved.
Whichever way it goes, observers will be closely watching the developments to see if regulatory pronouncement are sincere or often tainted with political considerations.
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