Federal Government regulatory body, NMDPRA has indicted Dangote Refinery in a recent controversial outburst.
NewsOnline Nigeria reports that President Bola Tinubu Federal Government through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has disclosed that the Dangote refinery has not been licensed to commence operations in Nigeria.
This Nigeria news platform understands that the NMDPRA Chief Executive Officer Farouk Ahmed clarified this during a press briefing at the State House in Abuja on Thursday.
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Ahmed refuted claims that the regulatory body was attempting to hinder the refinery’s operations due to a lack of crude oil supply from International Oil Companies (IOCs). He emphasized that the refinery is still in its pre-commissioning stage and has yet to receive its operating license.
“There are concerns about the nationwide supply of petroleum products and claims by some media that we are trying to scuttle Dangote refinery. That is not the case,” Ahmed stated. “Dangote Refinery is still in the pre-commissioning stage and has not been licensed yet.”
He further explained that Dangote Refinery’s request to halt all petroleum product imports could lead to a monopoly, which would be detrimental to the nation’s energy security. “The refinery is only about 45 percent complete. We cannot rely solely on one refinery to meet the nation’s needs,” he said.
Ahmed also raised concerns about the quality of petroleum products produced by Dangote Refinery, stating they are inferior to imported goods. “Currently, the sulfur content in the imported Automotive Gas Oil (AGO) is 50 ppm, whereas Dangote and other local refineries produce AGO with sulfur content between 650 to 1,200 ppm, which is much inferior.”
Devakumar Edwin, Vice-President at Dangote Industries Limited, had accused IOCs of obstructing the company’s access to local crude oil, forcing them to use expensive middlemen. Edwin alleged that while only one local producer, Sapetro, sells directly to DIL, others rely on non-Nigerian trading arms that inflate prices. He claimed that IOCs consistently offer local crude at a premium of $2-$4 per barrel above the official price set by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
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