Dangote Laments, Says IOCs Plot To Frustrate Survival Of Our Oil Refinery

Mr. Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited (DIL), has accused International Oil Companies (IOCs) in Nigeria of doing everything possible to undermine Dangote Oil Refinery and Petrochemicals’ survival.
He claimed that the IOCs are deliberately and wilfully thwarting the refinery’s efforts to buy local crude by charging a high premium above the market price, forcing it to import crude from countries as far away as the United States, with associated high costs.
Edwin, who spoke to a group of Energy Editors at a one-day training programme organised by the Dangote Group, also criticised the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for granting indiscriminate licences to marketers to import dirty refined products into the country.
He stated, “The Federal Government issued 25 licences to build refineries, and we were the only ones who followed through on their promises. In effect, we are entitled to full government support.
“It is worth noting that more than 3.5 billion litres, or 90% of our total output, have been exported since the start of production. We are urging the federal government and regulators to provide us with the necessary assistance to create jobs and prosperity for the country.”
According to him, “While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is doing its best to allocate the crude for us, the IOCs are purposefully and willfully impeding our efforts to purchase local crude. It should be noted that the NUPRC recently met with crude oil producers and refinery owners in Nigeria to ensure full adherence to Domestic Crude Oil Supply Obligations (DCSO), as outlined in section 109(2) of the Petroleum Industry Act (PIA). It appears that the IOCs’ goal is to see that our Petroleum Refinery fails.
“Either they are deliberately asking for a ridiculous/humongous premium, or they simply state that crude is unavailable. We eventually ended up paying $6 more than the market price. This has led to reduced output and increased production costs by importing crude from countries such as the United States.
“It appears that the IOCs’ goal is to keep Nigeria as a crude oil exporter and an importer of refined petroleum products. They (IOCs) are interested in exporting raw materials to their home countries, creating jobs and wealth for their countries, increasing their GDP, and dumping expensive refined products into Nigeria, causing us to rely on imported products.
“It is the same strategy that multinational corporations have used in every commodity, causing Nigeria and Sub-Saharan Africa to face unemployment and poverty while creating wealth for themselves at our expense.
“This is blatant exploitation. Unfortunately, the country is also playing into their hands by continuing to grant import licences at the expense of our economy and the health of Nigerians who are exposed to carcinogenic products.
“Even though we are producing and supplying diesel to the market by ECOWAS regulations and standards, licences are being issued in large quantities to traders who are purchasing extremely high sulphur diesel from Russia and dumping it in the Nigerian market.
“Since the US, EU, and UK implemented a Price Cap Scheme on Russian Petroleum Products on February 5, 2023, a large number of vessels are waiting near Togo with Russian ultra-high sulphur diesel, which is being purchased and dumped into the Nigerian market.
“Some European countries were so concerned about the carcinogenic effects of the extra high sulphur diesel being dumped into the Nigerian market that countries such as Belgium and the Netherlands recently banned such fuel from being exported from their countries into West Africa.
“It is unfortunate that the country is issuing import licences for such dirty diesel to be imported into Nigeria when we have more than adequate petroleum refining capacity locally.”
It should be noted that in May, Belgium and the Netherlands adopted new quality standards to halt the export of cheap, low-quality fuels to West Africa, aligning their standards with those of the European Union.
“These measures align fuel export standards with the European domestic market, focusing on diesel and petrol with high sulphur and chemical content. Historically, these fuels, which had a sulphur content of up to 10,000 ppm, were exported at reduced rates to Nigeria and other West African consumers.
Belgium’s Minister of Environment, Zakia Khattabi, announced that his country would follow the Netherlands in prohibiting the export of low-quality petrol and diesel to West Africa through the ports of Amsterdam and Rotterdam in April 2023. Khattabi emphasised that the Netherlands’ decision to restrict dirty fuel exports had redirected trade to Belgium, which is now used by oil producers and traders to export petrol containing excessively high levels of benzene and sulphur.
“For far too long, toxic fuels have been exported from Belgium to Africa. They pollute the air in Ghana, Nigeria, and Cameroon and are even carcinogenic, according to Khattabi.
In September 2017, an investigation by the international organisation Public Eye revealed that polluted and toxic fuels were being exported on a large scale from the ports of Rotterdam and Amsterdam to African markets.
Up to 25% of the petrol and diesel available in West Africa comes from the ports of Amsterdam, Rotterdam, and Antwerp.
These fuels contain sulphur and other pollutants, such as cancer-causing benzene, in quantities up to 400 times those allowed in Europe.
The Netherlands and Belgium were ordered to enforce regulations to protect millions of Africans from exposure to toxic fuels.
The decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to grant licences indiscriminately for the importation of dirty diesel and aviation fuel has prompted the Dangote refinery to expand into foreign markets.
The refinery recently shipped diesel and aviation fuel to Europe and other parts of the world. The same industry players fought us to lower the price of diesel and aviation fuel, but our goal, as I previously stated, is to expand our economy.
He stated that because the refinery meets international standards and follows stringent guidelines and regulations to protect the local environment, it has been able to export its products to Europe and other parts of the world.
He urged the Federal Government and the National Assembly to intervene urgently to ensure the PIA’s timely implementation and the protection of Nigeria’s and Nigerians’ interests, saying: “Recently, the government of Ghana banned the importation of highly contaminated diesel and PMS into their country through legislation.
“It is unfortunate that import licences are granted in Nigeria even though we can produce nearly double the amount of products required in Nigeria and export the surplus. Since January 2021, ECOWAS regulations have prohibited the importation of highly contaminated diesel into the region.