Nigeria's lawmakers have launched a probe into crude oil shortages and fuel importation issues at the Dangote Refinery. The investigation, spurred by tensions with the regulatory authority, aims to address substandard fuel imports and refinery supply problems. The findings will be reported to Parliament for further action.
On July 23, 2024, Nigeria’s lower parliament established a committee to probe issues surrounding fuel imports and crude oil shortages affecting local refineries, particularly the $20 billion Dangote Refinery. The investigation aims to address claims of dirty fuel imports and the inadequate supply of crude oil to domestic refineries. Ikenga Ugochinyere, co-chair of the committee, highlighted that the probe will start by examining allegations of substandard petroleum products and crude oil shortages.
The Dangote Refinery, operational since January, has struggled with securing sufficient crude oil from local sources due to alleged obstruction by oil majors and regulatory challenges. Dangote claimed that high-sulphur gasoil imports undermine his refinery’s competitiveness. Conversely, the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) contends that the refinery’s gasoil quality does not meet local standards, citing higher sulphur content compared to imported products.
During a recent visit, Dangote compared his refinery's diesel to local market samples, revealing that his product had lower sulphur levels than many imported fuels. Despite this, the NMDPRA insists the refinery is not fully operational. The committee will also perform a forensic audit of the sector and urged all parties to ease tensions as they work toward a resolution.
This inquiry highlights ongoing conflicts within Nigeria’s oil sector and aims to ensure fair practices and improve the quality of fuel available to consumers.
