The President of Dangote Group, Aliko Dangote, has hinted he could sell the Dangote Refinery to the Nigerian National Petroleum Corporation Limited, if they can manage it better. The businessman in a recent interview expressed his willingness to sell the refinery to address allegations of monopoly in the industry.
Mr. Dangote stated that if the NNPCL takes over the refinery, the allegations of monopoly would no longer be valid. He remarked, “Let them (NNPCL) buy me out and run the refinery the best way they can. They have labeled me a monopolist. That’s an incorrect and unfair allegation, but it is acceptable. If they buy me out, at least, their so-called monopolist would be out of the way.”
Mr. Dangote acknowledged, “We have been facing fuel crisis since the 1970s. 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, and run the refinery.”
The prominent business tycoon expressed his willingness to relinquish ownership of the Dangote Refinery to the Nigerian National Petroleum Corporation Limited in order to address the allegations of monopolistic practices in the industry.
This declaration comes after Mr. Ahmed, the NMDPRA chairman had stated in a press statement with State House correspondents that Dangote is requesting a suspension or stoppage of all petroleum product imports, particularly automotive gas oil (AGO), and that all marketers should be directed to procure from the refinery. This would not be advisable for the country’s energy security, and would not be beneficial for the market due to the potential for a monopoly.
Mr. Ahmed further alleged that the quality of the refinery’s products is inferior. He stated that in terms of sulphur content, which is a key indicator of fuel quality, the AGO produced by the Dangote refinery and some modular refineries such as Waltersmith and Aradel is between 650 to 1,200 parts per million (ppm), which is much higher than the West African requirement of 50 ppm. This suggests that the imported fuel quality is superior to the domestic production.
In a separate statement, Dangote revealed that the challenges his refinery is currently facing have validated the warnings of his friends and associates, who had advised him to exercise caution when investing billions of dollars in the Nigerian economy. Dangote, who is 67 years old, will be 70 in less than three years, underscoring the significance of these challenges.
