Support for Dangote Refinery Swells, Kyari Denies Owning Blending Plant in Malta

•House urges FG to suspend NMDPRA CEO pending probe into allegations

•Atiku describes conflict between Africa’s richest man, NMDPRA as troubling

•Otedola to FG: Support Dangote like other nations back their industrialists

•Peter Obi seeks protection for local industries

•NACCIMA says undermining Dangote refinery counterproductive

•MAN urges regulatory agency to issue clarification on new oil refinery comments

Emmanuel Addeh, Chuks Okocha and Juliet Aikoje in Abuja and Sunday Ehigiator, Dike Onwuamaeze in Lagos

Some prominent Nigerians yesterday added their voices to the groundswell of support for President of Dangote Group and Africa’s richest person, Alhaji Aliko Dangote, in the recent disagreements between the management of Dangote refinery and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

They called on government agencies in the petroleum sector to support the growth of the $19 billion oil refinery in Lagos, rather than attempting to tear it down.

But Group Chief Executive Officer of Nigerian National Petroleum Company Limited (NNPCL), Mr Mele Kyari, yesterday, reacted to an allegation by Dangote that some officials of the organisation owned a blending plant in Malta.

Kyari wrote on his X handle that he had no plant in Malta or anywhere in the world.

Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) called for protection of local industries. It stressed that the current row between Dangote and NMDPRA touched on domestic fuel security for the country and should not be about personalities.

The organisation maintained that undermining the refinery will be counterproductive and detrimental to Nigeria’s development aspirations.

Former Vice President and the presidential candidate of Peoples Democratic Party (PDP) in the 2023 general election, Atiku Abubakar, described as “troubling” the ongoing fight between the management of Dangote refinery and the industry regulator.

Writing on his verified X account, Atiku said Dangote refinery was crucial for Nigeria’s energy and economic stability. He stated that Nigeria risked scaring foreign investors away with the current altercations.

While calling for protection for the multi-billion-dollar investment, Atiku maintained that by doing so, the country will attract Foreign Direct Investment (FDI) as well as boost economic growth.

He stated, “The conflict between Aliko Dangote and the NMDPRA is troubling. The Dangote Refinery, our nation’s largest private investment, is crucial for Nigeria’s energy and economic stability.

“The 650,000 bpd refinery is essential for our energy needs and economic stability, and NNPC’s investment underscores its importance. If we neglect this, we risk deterring vital foreign direct investment.

“No investor will trust a nation that undermines its key assets. Protecting significant investments, like Dangote’s, is essential to attract FDI and drive our economic growth.”

The public differences between Dangote and NMDPRA had in recent days dominated national discourse after Chief Executive Officer (CEO) of the regulatory agency, Farouk Ahmed, publicly ran down products coming from the much awaited facility.

Ahmed stated that the refinery was churning out products with sulphur levels of between 650 Parts Per Million (PPM) and 1,200ppm. But Dangote quickly moved to rebut the imputation after tests showed that his products were about 78ppm as of last weekend.

But Ahmed had maintained that products from the facility, namely diesel and jet fuel, were of lower quality than the one imported by the Nigerian National Petroleum Company Limited (NNPCL).

Speaking with journalists on the matter, the NMDPRA chief executive stated that Dangote refinery had not even been granted a full licence to operate, explaining that the facility cannot be solely relied upon to satisfy the fuel needs of the country

Ahmed added that he had been under pressure by Dangote refinery to stop all import of diesel and jet fuel, despite the fact that the imported fuels had lower sulphur content than the 650,000 barrels per day Dangote refinery.

He alleged, “The Dangote refinery is still in the pre-commissioning stage. It has not been licenced yet. We haven’t licenced them yet. They are still in pre-commissioning stage. I think they’re about 45 per cent completed, in completion rather.

“So we cannot rely heavily on one refinery to feed the nation, because Dangote is requesting that we should suspend or stop all importation of petroleum products, especially Automotive Gas Oil (AGO) or diesel and jet fuel, and direct all marketers to the refinery.

“So, in terms of quality, currently…Dangote refinery as well as some major refineries produce between 650ppm and 1,200 ppm. So, in terms of quality, their quality is much inferior to the imported quality.”

It was unclear if attempts by Minister of State Petroleum (Oil), Senator Heineken Lokpobiri, to settle the rift caused by the NMDPRA chief executive’s utterances made any impact. But a statement from his office on Monday said he had met with the contending parties to try to douse the tension.

Nigerian billionaire, Femi Otedola, also threw his weight behind Dangote amid the company’s dispute with the downstream oil regulator. Otedola urged the federal government to support Dangote, like other countries supported their industrialists.

In a series of posts on X yesterday, Otedola said Dangote had built “the largest single train refinery in the world, the second-largest sugar refinery in the world,” emphasising that he (Dangote) remains the highest taxpayer in Nigeria.

Otedola wrote, “My brother, the visionary, has built the largest single train refinery in the world, not in Kano, but in Lagos State. He is the owner of the second-largest sugar refinery in the world, also in Lagos State, and the largest cement factory in the world, not in Kano, but in Kogi State.

“Additionally, he has established the second-largest fertiliser plants in the world, soon to surpass the biggest one in Qatar, also in Lagos State. Furthermore, he has built a fertiliser plant in Lagos that already exports globally. Aliko Dangote is a titan that God created especially for mankind.

“Aliko Dangote is also the largest private sector employer of labour in the country, and his companies are among the largest taxpayers. The Dangote Group often pays more in taxes than the top banks combined.

“If not for him, we would still be importing cement. His contributions extend beyond industrial facilities to critical infrastructure, having built major roads, such as the Apapa Oshodi-Oworonsoki Express Road, Wharf Road, and the Obajana-Kabba Road.”

Otedola added, “Countries in the nascent stages of industrialisation require visionary leaders. This is why it’s no surprise that the United States was built by the vision and tenacity of a few remarkable individuals, Cornelius Vanderbilt, John D. Rockefeller, Andrew Carnegie, J.P. Morgan, and Henry Ford – The Men Who Built America’s industrial landscape.

“These men left the world without these assets but left behind a legacy that has kept their country thriving generation after generation. Their contributions were immortalised not in the material wealth they amassed but in the enduring institutions and industries they established.

“These visionaries were also supported by their government, which recognised the importance of fostering local champions. Similarly, today’s tech giants, like Microsoft and Tesla, received substantial support from the US government.”

Otedola said in January 2010, the US Department of Energy issued a $465 million loan to Tesla Motors to produce specially designed, all-electric plug-in vehicles, and to develop a manufacturing facility in Fremont, California, to produce battery packs, electric motors, and other powertrain components for powering these innovative vehicles.

In his intervention on the Dangote/NMDPRA imbroglio, former Governor of Anambra State and presidential candidate of Labour Party (LP) in the 2023 presidential poll, Mr Peter Obi, stated that Dangote refinery should be fully supported, not vilified.

Obi said the recent conflict between Dangote industries and some government agencies was deeply troubling, stressing that the issue transcends political affiliations and personal grievances.

A statement by Obi on his X handle said, “It is fundamentally about Nigeria’s economy, future, and the wellbeing of its citizens. Given Alhaji Dangote’s significant contributions to Nigeria, it is crucial that these disputes are resolved swiftly.

“Government agencies should be directed to offer the necessary support for the seamless launch and operation of the Dangote refinery and its associated enterprises. The refinery has the potential to generate approximately $21 billion in annual revenue and create over 100,000 jobs, with numerous additional positive impacts on the economy.

“Its strategic importance in addressing Nigeria’s fuel crisis, boosting foreign exchange earnings, and fostering economic growth cannot be overstated. The refinery is too vital to fail and must not be hindered, considering its crucial role in our national welfare.”

He explained that the federal government and its agencies needed to recognise the significance of Dangote’s contributions, explaining that he is not just a businessman, but a national and African brand symbolising patriotism, commitment, and impactful entrepreneurship.

Obi said despite operating in a challenging business environment, Dangote had established a remarkable industrial hub in Nigeria, encompassing over 15 sectors, including cement, sugar, salt, fertiliser, infrastructure, tomatoes and automotive.

He listed others as energy, petrochemicals, rice, poly sacks, real estate, mining, logistics, and maritime.

According to Obi, “Dangote’s unwavering dedication to Nigeria’s industrialisation, job creation, and economic growth, despite adversities, warrants full support and protection. With economic indicators, like unemployment, inflation, forex scarcity, and debt worsening, every sensible and patriotic government should regard enterprises like Dangote Industries as national treasures, meriting robust support and protection.

“In the interest of Nigeria and its citizens, as well as Africans, at large, I urge the federal government and its agencies to provide Dangote Industries, especially the refinery, with all necessary support.

“The success of Dangote is intrinsically linked to the success of Nigeria and Africa; conversely, its failure would be a significant setback for both Nigeria and the continent.”

Meanwhile, Kyari reacted to an allegation by Dangote that some NNPCL officials owned a blending plant in Malta.

In a post on his X handle, Kyari said he had no plant either in Malta or elsewhere.

He urged Dangote to report such persons to the relevant government agencies for prosecution.

Kyari stated, “I am inundated by enquiries from family members, friends and associates on the public declaration by the President of Dangote Group that some NNPC workers have established a blending plant in Malta, thereby impeding procurements from local production of petroleum products.

“To clarify the allegations regarding blending plant, I do not own or operate any business directly or by proxy anywhere in the world, with the exception of a local mini-agric venture. Neither am I aware of any employee of the NNPC that owns or operates a blending plant in Malta or anywhere else in the world.

“A blending plant in Malta or any part of the world has no influence over NNPC’s business operations and strategic actions.”

The GCEO of the national oil company said sanctions will be meted out to any NNPC employee found culpable.

He said, “For further assurance, our compliance sanction grid shall apply to any NNPC employee who is established to be involved in doing so if availed and I strongly recommend that such individuals be declared public and be made known to relevant government security agencies for necessary actions in view of the grave implications for national energy security.”

However, on the altercation between the Dangote refinery management and NMDPRA, NACCIMA called for protection and support for local industries, stressing that it is in the interest of Nigeria.

In a statement yesterday, the organisation also lauded the intervention of the federal government in the disagreement involving NMDPRA and Dangote refinery.

National President of NACCIMA, Dele Oye, said protecting local industries was crucial for the economic growth of any country, explaining that they are significant sources of job creation and economic diversification.

Oye listed other functions of local industries as enhancing domestic supply security, technological advancement and innovation, increased Gross Domestic Product (GDP) and economic output, and foreign exchange savings, among others.

NACCIMA said, “Protecting local industries, like the Dangote refinery, is not just about ensuring the cheapest product in the market. It is about domestic supply security, driving globally competitive industries, maximising linkages within the local economy, creating jobs, reducing foreign exchange expenses, and strengthening the naira.

“Undermining local industries, especially those of such scale and significance, is self-defeating and harmful to our national interests.

“Protecting local industries is not just about shielding them from external competition; it is about creating a favourable environment where they can thrive and contribute to the overall economic health of the country.

“Policymakers must strike a balance between protectionism and openness to ensure that local industries can compete globally while also supporting domestic economic goals.”

The NACCIMA president highlighted the role played by Minister of State for Petroleum Resources, Heineken Lokpobiri, in convening a meeting involving Dangote and Ahmed, among others, aimed at resolving the current disagreements.

Oye stated, “The Dangote refinery stands as one of the eighth wonders of the world, a symbol of black African innovation and entrepreneurship. It represents a monumental achievement in Nigeria’s industrial sector and is crucial for the nation’s economic growth and energy security.

Similarly, Manufacturers Association of Nigeria (MAN) declared that no regulatory agency in Nigeria should be seen to be casting aspersion on a home-grown investment, like the Dangote refinery.

The declaration was made yesterday by Director General of MAN, Mr. Segun Ajayi-Kadir, who expressed concern over the recent allegations of poor quality of diesel levelled against one of the largest private investments in Africa, the Dangote refinery.

Ajayi-Kadir added that MAN had expressed grave concern and called for caution from major actors, government agencies and regulators in the oil and gas sector of the economy because hardly would any major foreign investor be encouraged to invest in Nigeria by the recent unwarranted castigation of Dangote refinery.

He said, “No regulatory agency should be seen to be casting a shadow over a home-grown investment, like the Dangote refinery. The allegations of poor quality, monopolistic tendencies, and non-issuance of license have since been roundly debunked. There may then be the need to issue a clarification that absolves the Dangote refinery of the negative perception generated by the news report.”

According to Ajayi-Kadir, it is expected that agencies of the government that provide regulatory oversight functions should promote an enabling business environment for local investments to thrive.

He stressed that local investors in Nigeria, particularly Dangote, played a vital role in driving economic growth by paying taxes, creating jobs, and fostering development within the country.

“As such, it is important that these investors are protected and given the necessary support to thrive in this business environment,” he said.

Ajayi-Kadir said a businessman, like Dangote, with investments in diverse sectors of the economy and across the continent, should be accorded all needed support to grow and invest in more sectors and positively impact the wellbeing of the people.

He stated, “There is no gainsaying the fact that Dangote refinery is deserving of government protection and support. The Dangote refinery, located in Lagos, is the largest single-train refinery in the world, will play a significant role in reducing Nigeria’s dependence on imported petroleum products, reduce cost and energy poverty, and significantly boost our energy sufficiency.

“This is also a company in which Nigeria and Nigerians are shareholders. We should never encourage or promote a preference for imported products over local alternatives. This amounts to importing poverty and exporting prosperity.”

According to the director general, the manufacturing sector is beset with multifaceted challenges that include high cost of electricity, high cost of compliance with regulatory requirements, lack of access to financing, unfavourable foreign exchange, and unfair competition from imported and smuggled products.

“It is, therefore, imperative that the Nigerian government takes proactive steps to address these binding constraints in order to improve the competitiveness of local industries and enhance their contribution to the GDP,” he said.

Ajayi-Kadir added that local investors were not only drivers of economic growth but also champions of national development.

He said, “They are the mirrors of our national industrial aspirations and their wellbeing is the attraction for both local and foreign would-be investors.

“There is hardly any major foreign investor that would be encouraged to invest in Nigeria by the recent unwarranted castigation of Dangote Refinery.

“On the other hand, supporting and protecting local investors, like the Dangote Refinery, would be sending a clear signal to foreign investors to take advantage of the conducive environment and invest, thereby creating jobs and building a more prosperous future for our people.”

The MAN director-general called on the Nigerian government to prioritise the protection of local investors and actively take necessary steps to improve the operating environment for manufacturers and other economic operators to thrive.

The House of Representatives called on the federal government to suspend the chief executive of NMDPRA, Ahmed, pending conclusive investigations into the allegations against the authority.

The resolution followed the adoption of a motion of urgent national importance on the “Urgent Need to Address the Outrage Resulting from Unguarded Comments by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Authority,” moved by Hon. Esosa lyawe at plenary yesterday.

Iyawe, while presenting the motion, stated that fuel quality could impact engine hardware, thus ultra-low sulphur diesel was recommended for all types of companies, power plants, storage tanks, industrial facilities, fleets and heavy equipment, and even ships, as high sulphur content in fuels caused damage to engines and contributed to air pollution.

He said considering the various risks associated with sulphur, governments around the world had taken steps to regulate it by setting standards that required maximum reduction of emissions of this chemical compound, which diesel producers were expected to adhere to.

According to him, sulphur dioxide has dire environmental and health consequences, as it can damage the human respiratory system, compromise lung function and even cause cancer.

Iyawe stated, “The NMDPRA permits local refiners to produce diesel with sulphur content of up to 650 parts per million (ppm) until January 2025, as approved by the ECOWAS.

“Recently, the chief executive of the NMDPRA stated that the diesel produced by the Dangote refinery is inferior to the ones imported into the country, and that their fuel had a large content of sulphur, which he put at between 650ppm to 1,200ppm.”

The lawmaker stated that in their defence, Dangote called for a test of their products, which was supervised by members of the House of Representatives, wherein it was revealed that Dangote’s diesel had a sulphur content of 87.6 ppm, whereas the other two samples of imported diesel showed sulphur levels exceeding 1800 ppm and 2000 ppm, respectively, thus, disproving the allegations made by the NMDPRA boss.

Furthermore, Iyawe said allegations had been made that NMDPRA was giving licences to some traders who regularly imported high-sulphur content diesel into Nigeria, and the use of such products posed grave health risks and huge financial losses for Nigerians.

He said, “The unguarded statements by the chief executive of the NMDPRA, which has since been disproved, sparked an outrage from Nigerians, who tagged his undermining of local refineries and insistence on the continued importation of fuel, an act of economic sabotage, as the imported products have been shown to contain high levels of dangerous compounds.

“The careless statement by the chief executive of the NUDPRA without conducting any prior investigation is not only unprofessional, but also unpatriotic, especially in the face of the recent calls for protest against the federal government.”