The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that the Dangote Refinery is still in its pre-commissioning phase and has yet to receive a license.
NMDPRA CEO Farouk Ahmed expressed concerns about the national supply of petroleum products on Thursday, July 18. He addressed rumors that NMDPRA was trying to hinder the Dangote Refinery, stating, “There are many concerns about the supply of petroleum products nationwide, and some media outlets claim we are trying to scuttle Dangote refinery; that is not so. The refinery is still in the pre-commissioning stage and has not been licensed yet.”
Ahmed explained that the Dangote Refinery is only about 45 percent complete, making it unreliable as a sole supplier for the nation’s petroleum needs. Dangote has requested a suspension of all petroleum product imports, particularly Automotive Gas Oil (AGO) and jet kerosene, and has asked that all marketers be directed to the refinery. Ahmed warned that this could harm the nation’s energy security and lead to monopolistic practices in the market.
He also highlighted quality concerns, noting, “The AGO quality in terms of sulfur content is the lowest in West Africa, requiring 50 ppm. The Dangote refinery, along with some other major refineries like Waltersmith, produces between 650 to 1200 ppm. Their quality is significantly inferior to imported products.”
On June 4, Aliko Dangote, Africa’s richest individual, claimed that some International Oil Companies (IOCs) were having difficulty supplying crude oil to his refinery. However, on Monday, July 15, Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), refuted this claim, stating it was inaccurate and noting that the Petroleum Industry Act (PIA) allows for willing buyer-willing seller transactions.
Despite this, on July 17, Dangote Industries Limited management maintained that IOCs were obstructing their efforts to purchase crude feedstock for the Dangote refinery.
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