FG to Continue Fuel Importation Despite Dangote Refinery as Reps Probe IOCs

The Federal Government of Nigeria has announced the continuation of refined petroleum product imports alongside local production by the Dangote Petroleum Refinery. This move aims to prevent monopoly and ensure energy security, despite calls for exclusive reliance on the $20 billion Dangote Refinery in Lagos.

Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), confirmed that Nigeria would not halt fuel imports. He emphasized that depending solely on the Dangote Refinery could jeopardize energy security and foster a monopoly. “The Dangote Refinery is still in the pre-commissioning stage and hasn’t been licensed yet. We can’t rely solely on one refinery for our fuel needs,” Ahmed stated in a press briefing.

The House of Representatives has also launched an ad-hoc committee to investigate allegations against International Oil Companies (IOCs) for not supplying crude oil to the Dangote Refinery. This investigation follows accusations from oil marketers against IOCs for failing to support indigenous refiners. The committee, led by Kingsley Chinda, aims to investigate the alleged conspiracy by IOCs to frustrate the Dangote Refinery. Chinda highlighted that IOCs were accused of manipulating crude prices, forcing the refinery to import crude at higher costs from abroad. “There’s an urgent need to investigate these allegations and ensure that the Dangote Refinery can operate smoothly without undue external pressures,” Chinda asserted.

Chief Ukadike Chinedu of the Independent Petroleum Marketers Association of Nigeria criticized NNPC and IOCs for not supplying sufficient crude to local refineries, including Dangote. He called for a local content quota to prioritize domestic refineries. Meanwhile, Olaide Shonola of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reassured that efforts were ongoing to address the crude supply crisis, emphasizing a “willing-buyer, willing-seller” approach.

Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries, accused NMDPRA of granting excessive import licenses for substandard refined products. He noted that Dangote Refinery had been forced to export a significant portion of its diesel and aviation fuel production to Europe due to local market challenges. “We are the only refinery to have delivered on our promise out of the 25 licenses issued by the government. We need the necessary support to create jobs and prosperity for the nation,” Edwin remarked.

Efforts to reach Dangote Group for further comments were unsuccessful, as their spokesperson, Tony Chiejina, did not respond to calls or messages.