Experts Urge Government to Support $20 Billion Dangote Refinery Amid Political Concerns

Leading industry experts are calling on the Nigerian federal government to resolve all outstanding issues and fully support the $20 billion Dangote Refinery, emphasizing its potential to attract substantial local and foreign investments.

Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), recently stated that the refinery is still in the pre-commissioning stage and has not yet received its operating license.

In an interview with Vanguard, several experts highlighted the importance of government support for the refinery. Chinedu Amah, Founder of Spark Nigeria, emphasized the need for the federal government to support local production to spur economic growth. He criticized the ongoing importation of crude oil and petrol, arguing that the modern Dangote Refinery could refine crude oil to meet required sulfur standards.

“The ongoing political noise detracts from the real issue, which is the necessity to reduce imports and enhance local production,” Amah said.

Mazi Colman Obasi, President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), also urged all parties to resolve their differences for the country’s economic benefit. He recalled Dangote’s previous investments in government refineries, which prompted him to build the new facility. Obasi called for cooperation among the federal government, Dangote Refinery, and International Oil Companies (IOCs) to boost midstream and downstream investments.

Another expert, who wished to remain anonymous, criticized government officials for undermining the refinery. “It’s counterproductive for officials to discredit a $20 billion investment on national television, especially when seeking foreign investments,” he said.

Farouk Ahmed addressed concerns about the refinery’s status and quality of its products. He denied claims that the government was attempting to hinder the refinery’s progress and noted that the refinery’s products currently do not meet the West African sulfur content requirements.

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has also voiced concerns about the potential monopoly of the Dangote Refinery in supplying Automotive Gas Oil (AGO). They highlighted existing investments by Nigerian entrepreneurs in the downstream petroleum sector and compliance with the Afri-5 fuel specifications.

In light of these issues, experts and industry stakeholders are urging the government to create a conducive environment for the Dangote Refinery, which is seen as crucial for the country’s economic development.