Africa’s wealthiest man, Aliko Dangote, is open to selling his extensive oil refinery to Nigeria’s state-owned NNPC Limited due to ongoing disagreements with the government.
The refinery, which processes 650,000 barrels per day, began operations last year after a decade of development and is encountering challenges, notably in acquiring crude oil from international suppliers.
Despite having a supply agreement, NNPC has delivered only 6.9 million barrels since last year, prompting the refinery to explore other sources in countries such as Brazil and the U.S.
Dangote has expressed his dissatisfaction with these hurdles, indicating his willingness to part with the project if it benefits the nation.
In a recent interview, he said, “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.”
This interview took place on Sunday with Premium Times.
Having dominated Nigeria’s cement, salt, and sugar sectors, Dangote’s expansion into oil and gas has presented difficulties.
The refinery, which cost $19 billion—more than twice the initial estimate—aims to cut Nigeria’s fuel imports and save up to 30% of foreign exchange used on imports.
The refinery, expected to release its first batch of petrol to the Nigerian market in August, has been operating at just over half capacity due to issues in securing crude oil from international producers.
“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,” Dangote said.
“This refinery can help resolve the problem, but it seems some people are uncomfortable with me in the picture. So I am ready to let go, let the NNPC buy me out and run the refinery. At least the country will have high-quality products and create jobs,” he added.
Dangote’s decision comes after facing several obstacles, which he believes validate the caution advised by friends and associates when he invested billions into Nigeria’s economy.
“Four years ago, one of my very wealthy friends began to invest his money abroad. I disagreed with him and urged him to rethink his action in the interest of his country. He blamed his action on policy inconsistencies and interest groups. That friend has been taunting me in the past few days, saying he warned me and that he has been proven right,” Dangote said.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Group, recently accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of allowing the import of substandard fuel into Nigeria.
In response, Farouk Ahmed, CEO of NMDPRA, claimed that diesel from Dangote’s refinery and other similar operations, such as Waltersmith and Aradel, has high sulfur content, which could harm vehicle engines and the environment.
During a recent visit by members of the House of Representatives to the Dangote Petroleum Refinery and Dangote Fertiliser Limited complex, Aliko Dangote refuted these allegations. Laboratory tests conducted during the visit showed that Dangote’s diesel contains only 87.6 ppm of sulfur, which is much lower than the 1800 ppm and 2000 ppm found in imported samples. Dangote has called for an unbiased comparison of the quality of his refinery’s products with imported fuel to ensure a fair evaluation of what is best for Nigeria.
Additionally, during the visit, Dangote announced his decision to pause investments in Nigeria’s steel sector to avoid claims of monopolistic practices.
