Experts have called on the Nigerian government to resolve all outstanding issues and support the $20 billion Dangote Refinery to attract more local and foreign investments. This appeal follows statements by Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), indicating that the refinery is still in the pre-commissioning stage and has not yet been licensed.
In an interview with Vanguard, various stakeholders emphasized the importance of government support for local production to bolster Nigeria’s economic growth. Chinedu Amah, founder of Spark Nigeria, stressed the need for the government to facilitate local crude oil refining rather than relying on imports. “The more the federal government allows Dangote to keep importing crude oil and petrol, the less our economy can grow,” he stated.
Mazi Colman Obasi, President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), called for a resolution of all issues involving the federal government, Dangote Refinery, and International Oil Companies (IOCs). He noted that such resolution would encourage further investments in Nigeria’s midstream and downstream sectors. “Mr. Aliko Dangote has come a long way. Whatever the case may be, I call on all parties to resolve all the issues,” Obasi said.
An anonymous expert criticized government officials for publicly disparaging a significant local investment. “Our government wants foreign investors to bring their money into this country. Yet, the same officials are on national TV disparaging a $20 billion investment,” the expert remarked.
Farouk Ahmed clarified that there were concerns about the supply of petroleum products nationwide and denied any intention to obstruct the Dangote Refinery. He highlighted that the refinery is still at 45 percent completion and has not yet met the required licensing criteria. He also pointed out the quality differences between the refinery’s products and imported ones, stating, “In terms of quality, the AGO quality in terms of sulfur is the lowest as far as West Africa’s requirement of 50 ppm.”
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) expressed concerns about a potential monopoly in the supply of Automotive Gas Oil (AGO) by the Dangote Refinery. They noted that Nigerian entrepreneurs had significant investments in the downstream petroleum sector before the establishment of the Dangote Refinery. DAPPMAN highlighted compliance issues with the ‘Afri 5’ gasoil and gasoline specifications and called for a fair competitive environment.
In conclusion, the experts unanimously urged the federal government to facilitate the timely completion and operation of the Dangote Refinery, recognizing its potential to significantly enhance Nigeria’s economic landscape and reduce the nation’s reliance on imported petroleum products.
