Aliko Dangote, Africa’s wealthiest man, has announced his willingness to sell his multibillion-dollar oil refinery to the state-owned energy company, NNPC Limited. This offer comes amid a heated dispute with a key equity partner and regulatory authorities in Nigeria.
In an exclusive interview with PREMIUM TIMES, Dangote stated, “Let them [NNPCL] buy me out and run the refinery the best way they can. They have labelled me a monopolist. That’s an incorrect and unfair allegation, but it’s OK. If they buy me out, at least, their so-called monopolist would be out of the way.”
The $19 billion refinery, which has a capacity of 650,000 barrels per day, began operations last year after a decade of construction. It was initially estimated to cost $9 billion and aims to reduce Nigeria’s reliance on imported fuel, potentially saving up to 30% of the country’s foreign exchange spent on imports.
Dangote highlighted the challenges faced by the refinery, including difficulties in sourcing crude from international producers and limited supply from NNPC. As of May, NNPC had only delivered 6.9 million barrels of oil to the plant since its operations began, despite a previous supply agreement.
The refinery, which is set to roll out its first batch of petrol to the Nigerian market in August, has been operating at just above half its capacity due to these supply issues. Dangote has turned to other countries, such as Brazil and the U.S., to bridge the gap in supply.
Reflecting on his decision, Dangote mentioned his age and the interest of the country as key factors. “As you probably know, I am 67 years old. In less than three years, I will be 70. I need very little to live the rest of my life. I can’t take the refinery or any other property or asset to my grave. Everything I do is in the interest of my country,” he said.
The refinery has also faced criticism from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which accused it of producing diesel with high sulphur content. However, lab tests during a recent tour by the House of Representatives showed that Dangote’s diesel had a sulphur content of 87.6 ppm, significantly lower than the levels found in imported samples.
In response to the accusations, Dangote challenged the regulator to compare the quality of his refinery’s products with those imported, advocating for an impartial assessment.
Amid these challenges, Dangote also announced plans to halt his investment in Nigeria’s steel industry to avoid accusations of monopoly. “Our board has decided that we shouldn’t do the steel because if we do the steel business, we will be called all sorts of names like monopoly. And then also, imports will be encouraged,” he said.
As the dispute continues, Dangote’s offer to sell the refinery to NNPC represents a significant development in Nigeria’s energy sector, potentially reshaping the landscape of domestic fuel production and supply.