Dangote Offers to Sell Refinery to NNPC Amid Monopoly Allegations

Aliko Dangote, President of Dangote Group, has expressed his willingness to sell the Dangote Refinery to the Nigerian National Petroleum Corporation Limited (NNPCL). 

Dangote, who is rated as Africa’s richest man, revealed in an exclusive interview with Premium Times on Sunday that the offer aims to address allegations of monopoly levelled against him.

The versatile business tycoon stated that transferring ownership of the refinery to NNPCL would dispel the monopoly accusations levied against him. “Let them (NNPCL) buy me out and run the refinery the best way they can. They have labelled 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,” he said.

He further emphasised the refinery’s potential to alleviate Nigeria’s long-standing fuel crisis, which dates back to the 1970s. 

However, he suggested that some stakeholders are uncomfortable with his involvement. “We have been facing fuel crises since the 70s. This refinery can help in resolving the problem, but it does appear some people are uncomfortable that I am in the picture. So I am ready to let go, let the NNPC buy me out, run the refinery,” Dangote added.

The offer follows comments from Farouk Ahmed, Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority. 

Ahmed accused the Dangote refinery of attempting to monopolize the market by requesting the regulator to halt import licenses for other fuel marketers, thereby becoming Nigeria’s sole fuel supplier. 

“We cannot rely heavily on one refinery to feed the nation, because Dangote is requesting that we should suspend or stop importation of all petroleum products, especially AGO, and direct all marketers to the refinery. That is not good for the nation in terms of energy security. And that is not good for the market, because of monopoly,” Ahmed stated in a video interview with State House correspondents.

Ahmed also criticised the quality of the refinery’s products, claiming that the sulphur content in the refinery’s AGO was significantly higher than the West African requirement of 50 ppm, producing between 650 to 1,200 ppm instead. “In terms of quality, their product is much more inferior to the imported quality,” he noted.

Dangote acknowledged the challenges faced by his refinery and reflected on the advice from friends and associates who had cautioned him against investing billions of dollars in the Nigerian economy. 

“As you probably know, I am 67 years old. In less than three years, I will be 70. I need very little to live the rest of my life. I can’t take the refinery or any other property or asset to my grave. Everything I do is in the interest of my country,” Dangote remarked.

The Dangote Refinery, which commenced operations last year after a prolonged construction period, has a capacity of 650,000 barrels per day. 

It was established to reduce Nigeria’s dependency on foreign fuel imports and conserve foreign exchange.