In a surprising turn of events, Africa’s wealthiest man, Aliko Dangote, has announced his willingness to sell his newly operational 650,000 barrel-per-day oil refinery to Nigeria’s state-owned NNPC Limited. This unexpected offer comes amid increasing tensions with regulatory authorities and challenges in sourcing crude oil for the $19 billion facility.
Speaking exclusively to PREMIUM TIMES, Dangote stated, “Let them (NNPCL) buy me out and run the refinery the best way they can.” He expressed frustration with the current situation, emphasizing that his intentions have always been to benefit Nigeria, despite accusations of monopolistic practices.
The refinery, which began operations in January, has encountered significant obstacles. Operating at just over half capacity, it struggles to secure adequate crude supply from both international producers and NNPC Limited, despite existing agreements. This difficulty has forced the refinery to source crude from countries like Brazil and the US.
In addition to supply issues, a dispute has arisen between Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over fuel quality. While NMDPRA claims that Dangote’s diesel contains high sulphur levels, the company strongly denies this, presenting contradictory test results during a recent tour by members of the House of Representatives.
Dangote’s offer to sell the refinery reflects his growing frustration with the business environment. At 67, he mentioned, he needs “very little to live the rest of my life” and cannot take his assets to the grave. This sentiment extends beyond the refinery, with Dangote also announcing plans to halt investments in Nigeria’s steel industry to avoid further monopoly accusations.
As Nigeria continues to grapple with long-standing fuel crises, the potential sale of Dangote Refinery to NNPC Limited could significantly impact the country’s energy sector and economic landscape.
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