Dangote offers to sell the refinery to NNPC for buyout money

The Nigerian National Petroleum Corporation Limited has received an offer to purchase the Dangote Refinery from Aliko Dangote, President of the Dangote Group.

In response to claims of industry monopoly, the businessman stated in an exclusive interview with Premium Times on Sunday that he would be willing to sell the refinery.

He declared that the claims of monopoly would end if the NNPCL acquired the refinery.

“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.

“We have been facing fuel crisis 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,” Premium Times quoted him as saying.

This is in response to statements made by Farouk Ahmed, the CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, stating that the Dangote refinery had asked the regulator to cease granting import licenses to other marketers in order to become Nigeria’s exclusive 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 said that the produce of the refinery is subpar.

“In terms of quality, currently the AGO quality in terms of sulphur is the lowest as far as the West African requirement of 50 ppm is concerned.

“Dangote refinery and some modular refineries, like Waltersmith refinery and Aradel refinery, they are producing between 650 to 1,200ppm. So, in terms of quality, their product is much more inferior to the imported quality,” he stated.

Premium Times was informed by Dangote that the difficulties his refinery is currently experiencing have confirmed the advice of his friends and associates to proceed cautiously while making billion-dollar investments 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.

“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. At least the country will have high-quality products and create jobs,” he said

After a protracted building phase, the Dangote Refinery began operations last year and can process 650,000 barrels per day.

The purpose of the refinery is to save foreign cash and lessen Nigeria’s dependency on imported fuel.