Aliko Dangote offers to sell his 650,000 bpd oil refinery to NNPC Limited amid regulatory disputes and crude supply challenges. The $19 billion facility faces accusations of monopoly and fuel quality issues. Dangote expresses frustration with the business environment and halts plans for steel industry investment
In a surprising turn of events, Africa's wealthiest man, Aliko Dangote, has expressed willingness to sell his newly operational 650,000 barrel-per-day oil refinery to Nigeria's state-owned NNPC Limited. This offer comes amid growing tensions with regulatory authorities and challenges in sourcing crude oil for the $19 billion facility.
Dangote, speaking exclusively to PREMIUM TIMES, stated, "Let them (NNPCL) buy me out and run the refinery the best way they can." He cited accusations of monopoly and expressed frustration with the current situation, emphasizing that his intentions have always been to benefit Nigeria.
The refinery, which began operations in January, has faced significant hurdles. Operating at just over half capacity, it struggles to secure adequate crude supply from international producers and NNPC Limited, despite existing agreements. This has forced the refinery to source crude from countries like Brazil and the US.
Amidst these challenges, a dispute has erupted between Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over fuel quality. While NMDPRA claims Dangote's diesel contains high sulphur levels, the company vehemently denies this, presenting contradictory test results during a recent tour by House of Representatives members.
Dangote's offer to sell the refinery reflects his growing frustration with the business environment. He mentioned that at 67, he needs "very little to live the rest of my life" and cannot take his assets to the grave. This sentiment extends beyond the refinery, with Dangote also announcing plans to halt investments in Nigeria's steel industry to avoid further monopoly accusations.
As Nigeria grapples with long-standing fuel crises, the potential sale of Dangote Refinery to NNPC Limited could significantly impact the country's energy sector and economic landscape.
