President of Dangote Group, Aliko Dangote, has advised regulators of Petroleum Refinery & Petrochemical products to safeguard the market rather than undermining it.
The Africa richest man stated that dubious certifications accompany the importation of high-sulphur diesel into Nigeria, causing both health risks and financial losses for Nigerians.
Dangote who disclosed this during the weekend was reacting to the statement credited to the Authority Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Engr. Farouk Ahmed.
Engr. Farouk had alleged that Dangote refinery and other modular refineries like Waltersmith and Aradel produced diesel with high sulphur contents.
However, in a riposte Dangote opined: “We produce the best diesel in Nigeria. It’s disheartening that instead of safeguarding the market, the regulator is undermining it. Our doors are open for the regulator to conduct tests on our products anytime; transparency is paramount to us. It would be beneficial for the regulator to showcase its laboratory to the world so Nigerians can compare. Our interest is Nigeria first because if Nigeria doesn’t grow, we have limited capacity for growth.
“Right Honourable Speaker and esteemed members; you’ve witnessed the results of the credibility test. I appreciate your wise counsel in procuring samples from the filling stations alongside our refinery’s product. Ours shows sulphur content of 87.6 ppm, approximately 88, whereas the others exceeded 1,800 ppm.
“Although the NMDPRA permits local refiners to produce diesel with sulphur content up to 650 ppm until January 2025, as approved by ECOWAS, ours is significantly lower. Next week, we aim to achieve 10 ppm, aligning with the Euro V standard. Imported diesel is capped at 50 ppm, but as you’ve seen, those from the stations, imported by major marketers, fall well outside this standard.
“Dubious certifications often accompany the importation of high-sulphur diesel into Nigeria, causing both health risks and financial losses for Nigerians.
“The best method to verify this is to purchase the product directly from filling stations where end-users obtain it. I believe Farouk Ahmed speaks without sufficient knowledge of our refinery. We have successfully exported diesel and jet fuel to Europe and Asia without any complaints; in fact, we have received repeated orders, indicating satisfaction with our products.”
Similarly, the Vice President of Gas and Oil at Dangote Industries Limited, Devakumar Edwin, informed the federal lawmakers that the Dangote Petroleum Refinery, designed to process a wide range of crudes, including various African and Middle Eastern crudes, as well as US Light Tight Oil, conforms to Euro V specifications.
Noting that products from the $20 billion facility are of high quality and meet international standards, Edwin said it can meet 100% of Nigeria’s demand for petrol, diesel, kerosene, and aviation Jet, with surpluses available for export.
On his part, the Group’s Vice President, Olakunle Alake, expressed disappointment over accusations of monopoly against the Dangote Group, stressing that there are multiple players in the industry, including the Nigerian National Petroleum Corporation (NNPC), which operates four refineries.
In his response, Rt. Hon. Abass, said: “Today’s visit to the magnificent facilities of Dangote Industries Oil Refinery section has been nothing short of enlightening. It has afforded us a rare opportunity to witness first-hand the monumental strides that your organisation has made in transforming the landscape of petroleum production in Nigeria. The sheer scale and sophistication of this facility are awe-inspiring; it stands as a beacon of hope for our country as we navigate through the turbulent waters of energy supply challenges.
“Each corner of this facility resonates with the echoes of hard work, dedication, and an unyielding pursuit of quality. Every drop produced here carries not just oil but also the hopes and dreams of millions who yearn for a brighter future. We are deeply impressed by what we have seen during this visit which confirms the rating of this industry as the single largest oil refinery in Africa. This remarkable achievement does not merely reflect corporate success; it symbolises national pride, a tribute to what can be accompanied when visionary leadership meets relentless determination.
“I would like to take this opportunity to acknowledge the myriad challenges that have beset this remarkable facility. The regulatory hurdles that often loom like dark clouds over progress, the complexities surrounding crude oil supplies that can stifle even the most ambitious endeavours, and the daunting economic landscape we navigate especially in these times when our economy grapples with foreign exchange constraints are all formidable adversaries. Yet, despite these tribulations, your unwavering commitment to excellence shines through.”