*Dangote Petroleum Refinery and Petrochemicals Limited urges the Management of Pinnacle Oil and Gas Limited to understand that deregulation of the downstream sector is not a justification for importation of ‘off-spec petroleum products’ to undermine national interests and endanger the lives of energy consumers

Alexander Davis | 绿帽献妻

Against the backdrop of its recent allegation of siting a company blending substandard petroleum products, Dangote Petroleum Refinery and Petrochemicals Limited has urged Pinnacle Oil and Gas Limited to understand that deregulation of the downstream sector is not a justification for importation of off-spec petroleum products to undermine Nigeria鈥檚 national interests.

Dangote Refinery said this in a statement titled, “Pinnacle Oil and Gas FZE: Our Stand”,聽 Tuesday, November 5, 2024, in a direct response to remarks by Robert Dickerman, Chief Executive Officer (CEO) of Pinnacle Oil and Gas Limited, concerning the importation and blending of petroleum products, which he framed within the context of a “deregulated commodity market.”

Alhaji Aliko Dangote, President/CE of Dangote Group

Dangote Petroleum Refinery said Dickerman’s argument for a deregulated market could not obscure the serious implications of his company’s actions, which the indigenous oil-refining company claimed, not only threatened the integrity of Nigeria鈥檚 energy sector but also endangered the welfare of energy consumers.

Reiterating its support for deregulation and industrialisation, Dangote, however, noted that this support is grounded in a commitment to the sustainable growth of the country鈥檚 economy and the protection of its people from exploitation.

Dangote Refinery has made it clear that the health and safety of Nigerians should never be compromised in the pursuit of profit, noted the statement.

It also stated: “The Dangote Petroleum Refinery and Petrochemicals Company has long been an advocate for deregulation and industrialisation in Nigeria, but our support is rooted in a commitment to the sustainable growth of the country’s economy and the protection of its people from any exploitation.

“Unlike Dickerman鈥檚 view, deregulation should not be a licence for the importation and distribution of off-spec products or the subversion of national interests.”

The company also noted that, as an American, Dickerman should be well aware of how his own country protects its industries.

Dangote Refinery as well pointed to several recent examples from the United States to underline the point.

It said for instance, U.S. President Joe Biden recently opposed the sale of U.S. Steel to Japan鈥檚 Nippon Steel.

The American President stressed the importance of maintaining strong American steel companies supported by American workers鈥攁n example of protectionism that prioritises national economic interests over short-term profit. Similarly, the U.S. has taken action to restrict the use of Chinese-made cranes in its ports, citing national security concerns.

The U.S. has also imposed a 100% tariff on electric vehicles and a 50% duty on medical equipment imported from China, further demonstrating its commitment to safeguarding domestic industries.

It also noted the United States further ramped up efforts at boosting its own production of computer chips and medical supplies, driven by national security concerns and the need for economic self-sufficiency. Furthermore, during his presidency, George W. Bush used anti-dumping laws to impose tariffs on a range of Chinese goods that were considered to be unfairly priced.

The statement noted: “It is therefore, perplexing that Dickerman, with all his experience in the U.S. market, would advocate the importation and blending of petroleum products to Nigeria under the claim of deregulation and a free market.

“The fact is that he had deceitfully approached us and pleaded that we extend the pipeline from our refinery to Pinnacle鈥檚 tank farms for the purpose of blending our high-quality products with their imported products and selling them to Nigerians.”

The Refinery stated: “We categorically rejected his request to extend our pipeline to their tank farms for such devious purposes because it would be a betrayal of the Nigerian people鈥檚 trust.

“The health and safety of Nigerians cannot鈥攁nd should not鈥攂e compromised for profit.鈥�

Dangote Petroleum Refinery equally raised concerns over Pinnacle Oil鈥檚 decision to lease its tank farms to a company without any retail outlets in Nigeria, questioning the strategic intent behind such actions, particularly given that the farms are located just 500 metres from Dangote Refinery at Ibeju-Lekki, in Lagos.

It expressed its vigilance regarding the coordinated efforts at undermining the Dangote Refinery, drawing parallels to the fate of the ailing state-owned refineries in Port Harcourt, Kaduna, and Warri

Dangote Petroleum Refinery, therefore, urged the Federal Government, patriotic Nigerians, and local businesses to remain steadfast in defending the country鈥檚 sovereignty and economic independence.

It said: “The choice we face is between fostering industrialisation or allowing Nigeria to remain a dumping ground for inferior products while exporting jobs.

“For nearly three decades, cartels and their collaborators have sabotaged efforts to develop Nigeria鈥檚 refining capacity, keeping the country dependent on imported products.

“The time has come to end this cycle of exploitation and ensure that Nigeria鈥檚 energy sector works for the benefit of its people.”

Reiterating its belief that a strong, self-sufficient energy sector is vital for Nigeria鈥檚 economic growth, Dangote affirmed that it would continue to advocate policies and practices that protect both industries and the well-being of all Nigerian consumers.

Dangote calls for healthy competition to engender quality and innovation

Dangote Petroleum Refinery also expressed its support for healthy competition that drives innovation and quality, and looked forward to the upcoming commissioning of the four state-owned refineries, as promised by the NNPCL.

It further stated: “At Dangote Petroleum Refinery, we are committed to ensuring that Nigeria becomes self-reliant in petroleum production, and we welcome competition that drives innovation and quality. “However, we will never allow the continued importation and blending of petroleum products, nor the deliberate destruction of our national economy.

“We believe that a strong, self-sufficient energy sector is vital to Nigeria鈥檚 economic growth, and we will continue to advocate for policies and practices that protect our industries and the well-being of all Nigerians.鈥�

The company said: “We eagerly anticipate the coming on stream of the Kaduna, Warri, and Port Harcourt refineries before the end of this year, as promised by the Group Chief Executive Officer (GCEO) of NNPCL, Mele Kyari.

“This milestone will not only end all baseless rumours of monopoly but also position Nigeria as a refining hub for petroleum products in Africa.”

Kindly Share This Story