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Energy Security: Why Federal Government, Nigerians should ‘fully support and protect’ Dangote Petroleum Refinery ─Peter Obi

Photo Collage of Alhaji Aliko Dangote (l) and Mr. Peter Obi Credit: LegitNG

*Peter Obi, politician and ex-Presidential Candidate of the Labour Party in the 2023 General Elections, in Nigeria, throws his weight around the Dangote Petroleum Refinery, urging the Federal Government and its regulatory agencies to recognise Dangote’s contributions to national development and support the oil-refining project rather than discourage it

Gbenga Kayode | ñ

Amid ongoing escalating altercations between Alhaji Aliko Dangote, Dangote Petroleum Refinery, and Nigerian National Petroleum Company (NNPC) Limited, as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), also known as ‘The Authority’, over a number of allegations against Dangote Group, Mr. Peter Obi, politician and former Presidential Candidate of the Labour Party in the 2023 Presidential Election, has thrown his weight around the Dangote Refinery.

Obi, who made the submission Tuesday, July 23, 2024, via his verified X account also, urged the Federal Government to support the oil-refining project rather than discourage it.

According to the former Governor of Anambra State, Obi said the Dangote Petroleum Refinery is a purely “economic issue”, not political.

Fuel tankers at products loading bay of the Dangote Petroleum Refinery at Ibeju-Lekki, in Lagos State

He stated: “Dangote Refinery Should Be Fully Supported, Not Vilified.

“The recent conflicts between Dangote Industries and some government agencies are deeply troubling.

“This issue transcends political affiliations and personal grievances. It is fundamentally about Nigeria’s economy, future, and the well-being of its citizens.”

Obi: Dangote, an ‘African brand symbolising patriotism, impactful entrepreneurship’

On Dangote’s dedication to industrialisation and job creation for Nigerians and others across the African continent, Obi further wrote: “Given Alhaji Dangote’s significant contributions to Nigeria, these disputes must be resolved swiftly. Government agencies should be directed to offer the necessary support for the seamless launch and operation of the Dangote Refinery and its associated enterprises.

“The refinery has the potential to generate approximately $21 billion in annual revenue and create over 100,000 jobs, with numerous additional positive impacts on the economy.”

He equally noted: “Its strategic importance in addressing Nigeria’s fuel crisis, boosting foreign exchange earnings, and fostering economic growth cannot be overstated.

“The refinery is too vital to fail and must not be hindered, considering its crucial role in our national welfare.

“The Federal Government and its agencies need to recognise the significance of Dangote’s contributions. Alhaji Dangote is not just a businessman; he is a national and African brand symbolising patriotism, commitment, and impactful entrepreneurship.”

On Dangote’s dedication to industrialisation and job creation for Nigerians and others across the African continent, Obi also said: “Despite operating in a challenging business environment, he has established a remarkable industrial hub in Nigeria, encompassing over 15 sectors, including cement, sugar, salt, fertilizer, infrastructure, tomatoes, automotive, energy, petrochemicals, rice, poly sacks, real estate, mining, logistics, and maritime.

“Alhaji Dangote’s unwavering dedication to Nigeria’s industrialisation, job creation, and economic growth, despite adversities, warrants full support and protection.

“With economic indicators like unemployment, inflation, Forex scarcity, and debt worsening, every sensible and patriotic government should regard enterprises like Dangote Industries as national treasures, meriting robust support and protection.”

He added: “In the interest of Nigeria and its citizens, as well as Africans at large, I urge the Federal Government and its agencies to provide Dangote Industries, especially the refinery, with all necessary support.

“The success of Dangote is intrinsically linked to the success of Nigeria and Africa; conversely, its failure would be a significant setback for both Nigeria and the continent.”

Sequel to the commencement of oil production, starting with diesel and jet fuel this year, Dangote has faced several crises with the governmental authorities and local crude oil producers as Nigeria expects the take-off of refining of Premium Motor Spirit (PMS), also known as petrol slated for August 2024.

The deepening disagreements between Dangote Petroleum Refinery, NNPC Limited, and NMDPRA reached a head recently when Farouk Ahmed, Chief Executive Officer (CEO) preferred allegations of inferior petroleum products coupled with a reported attempt at becoming a monopoly in the downstream sector of the petroleum industry.

Ahmed, while speaking with State House Correspondents, in Abuja, had asserted that imported diesel surpasses domestically refined products in quality.

The NMDPRA Chief Executive also alleged that Dangote Petroleum Refinery, and other modular refineries, like Waltersmith and Aradel produced diesel with sulphur content ranging from 650 to 1200 ppm.

Several Nigerian consumers have criticised Ahmed over his statements describing them as “a tactic to favour imported products over local ones.”

Testing oil product samples during Federal lawmakers’ visit to refinery

In a swift move to reassert the quality of products from the Dangote Petroleum Refinery and Petrochemicals, the world’s largest single train refinery located in Lagos, Dangote, at the weekend during the visit of the leadership of the House of Representatives to the facility, demonstrated that his are of superior quality, compared to imported equivalents and meet international standards.

Dangote Group, in a statement Sunday, also disclosed that Rt. Hon. (Dr.) Tajudeen Abbas, Speaker of the House of Representatives, and other members openly observed the testing of Automotive Gas Oil (diesel) from two petrol stations alongside Dangote Petroleum Refinery, in Lagos.

The conglomerate further explained diesel samples were procured from two well-known filling stations, near Eleko junction along the Lekki Epe Expressway, in Lagos State, by the honourable members.

The company said: “Chairman of the House Committee on Downstream, Hon. Ikeagwunon Ugochinyere, and Chairman of the House Committee on Midstream, Hon. Okojie Odianosen, oversaw the collection of samples from the Mild Hydro Cracking (MHC) unit of Dangote Refinery for testing of all the samples.”

According to Dangote Petroleum Refinery, the lab tests conducted during the Federal lawmakers’ visit revealed that “Dangote’s diesel had a sulphur content of 87.6 ppm (parts per million), whereas the other two samples showed sulphur levels exceeding 1,800 ppm and 2,000 ppm respectively.”

Dangote challenges ‘The Authority’ to assess quality of his refined products, and other brands in Nigerian market

Subsequently, Dangote openly challenged ‘The Authority’ to compare the quality of refined products from his refinery with those imported, advocating an impartial assessment to determine what best serves the interests of Nigerian consumers.

“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,” stated Dangote.

He also noted: “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.”

The President of DIL further said: “Ours shows a 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.”

Dangote said: “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.”

He also pointed out that high-sulphur content diesel regularly imported into the country often comes with dubious certifications.

The foremost entrepreneur as well noted emphasised that the most effective method to verify the quality is to purchase the product directly from filling stations and conduct credibility tests. According to him, this issue has resulted in both health risks and financial losses for Nigerians.

“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.”

Supporting Dangote’s assertion, VP of Gas and Oil at Dangote Industries Limited, Devakumar Edwin, highlighted recent actions by European countries like Belgium and the Netherlands.

“These countries have expressed concerns about the carcinogenic effects of high-sulphur diesel being dumped into the Nigerian market, prompting them to impose bans on such fuel exports to West Africa.”

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