The Nation Newspaper

Tag: Dangote Petroleum Refinery

  • Dangote -NMDPRA dispute: The real issues

    Dangote -NMDPRA dispute: The real issues

    sir: We have followed with interest the ongoing impasse between Dangote Petroleum Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The issue at stake transcends commercial disagreement. It strikes at the heart of a fundamental development question: the sovereignty of Nigeria’s governance process over its hydrocarbon resources.

    The paradox is striking: Nigeria now has a $20 billion refinery—one of the world’s largest—yet we continue importing petroleum products. A private investor has built the refining capacity our nation desperately needs, but faces systematic undermining from the very regulatory authority whose mandate is to support such investments. When government policy actively frustrates transformative local investment, we must question whether our economic strategy serves national interest or perpetuates dependency. The issues here—local refining, poverty alleviation, employment, industrial development—go far beyond commercial dispute. They touch the fundamental question of how Nigeria governs its most valuable resource.

    This situation exemplifies the conflict between two fundamentally different approaches to petroleum governance. Nigeria currently operates under “Contract Oil”: a system where petroleum is treated merely as a commodity for extraction and export, with value addition and job creation systematically externalized to foreign entities. We export raw crude only to import refined products at premium prices, perpetuating dependency rather than fostering development.

    Saudi Arabia demonstrates the alternative—”Development Oil”—using petroleum resources for comprehensive national transformation. The Kingdom does not permit any operation that undermines its local capacity. This has delivered over 500 vessels in its maritime fleet, comprehensive downstream capacity including world-class refineries, and absolute control over the petroleum value chain. Nigeria operates with no such vessels despite being Africa’s largest oil producer.

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    When regulatory actions frustrate investments that create local capacity, generate employment, and reduce import dependency, they violate constitutional obligation. The current situation where a domestic refinery struggles to secure crude feedstock while import licenses continue flowing represents fundamental failure of this constitutional responsibility.

    This is not merely about one refinery or one company—it is about whether Nigeria will continue the failed Contract Oil approach that has produced seven decades of resource curse, or embrace development oil principles that align hydrocarbon management with constitutional obligations and national development imperatives. This is a defining moment between sovereignty and dependency, between development and extractive stagnation, between constitutional compliance and commercial expediency.

    We urge all stakeholders to recognize the profound implications of this dispute and work toward resolution that serves Nigeria’s constitutional obligations, development imperatives, and long-term national interest.

    •Collins Okeke,

    Dr. Olisa Agbakoba SAN

    Olisa Agbakoba,

    OAL Energy and Natural Resource Practice Group, Lagos.

  • No payment yet from IPMAN, says Dangote

    No payment yet from IPMAN, says Dangote

    Dangote Petroleum Refinery yesterday said it has not received any payments from the Independent Petroleum Marketers Association of Nigeria (IPMAN) to purchase refined petroleum products.

    In a statement signed by the Group Chief Branding and Communications Officer, Dangote Group, Anthony Chiejina, the firm noted that although discussions are ongoing with IPMAN, it is misleading to suggest that the Association members are experiencing difficulties loading refined products from its refinery because there is no direct business dealings between both parties.

    “Although discussions are ongoing with IPMAN, it is misleading to suggest that they (IPMAN Members) are experiencing difficulties loading refined products from our Petroleum Refinery, as we currently have no direct business dealings with them. Consequently, we cannot be held responsible for any payments made to other entities. Consequently, we cannot be held responsible for any payments made to other entities.

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    “The payment in mention has been made through the Nigerian National Petroleum Company Limited (NNPCL), and not us. In the same vein, NNPCL has neither approved, nor authorised us to release our Premium Motor Spirit (PMS) to IPMAN,” the statement read.

    Chiejina, through the statement, reemphasised the Dangote Refinery’s capacity for meeting the nation’s petrol needs. “We would like to emphasise that we can meet the nation’s demand for all petroleum products, including petrol, diesel, and aviation fuel. At present, we can load 2,900 trucks per day and we have also been evacuating petroleum products by sea. We advise IPMAN to register with us and make direct payment as we have more than enough petroleum products to satisfy the needs of their members.

    “Furthermore, we believe it is instructive for all stakeholders to refrain from making unfounded statements in the media, as that could undermine the economic re-engineering efforts of His Excellency, President Bola Ahmed Tinubu. Conducting business through public speculation is counterproductive and unpatriotic.

    “In the interest of our country, we encourage all stakeholders to collaborate and heed the advice of President Tinubu, while promoting a unified approach, rather than engaging in media conflicts and needless propaganda,” the Dangote statement read.

  • Dangote crashes diesel price to N1,000/litre

    Dangote crashes diesel price to N1,000/litre

    Dangote Petroleum Refinery yesterday announced a further reduction in the pump price of Automotive Gas Oli (AGO) otherwise known as diesel from N1200 to N1,000 per litre.

    The company said in a statement that the latest slash will “positively affect all the spheres of the economy and ultimately reduce the high inflation rate in the country.”

    Three weeks ago, the firm reduced the price of the product from  about N1,600 per litre  to N1,200.

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    The Nation gathered that  the fresh  reduction  might  not be unconnected with  Federal Government’s   decision  to sell  crude  to  indigenous refiners such as Dangote Refinery in Naira.  

     The statement reads: “In an unprecedented move, Dangote Petroleum Refinery has announced a further reduction of the price of diesel from 1200 to 1,000 naira per litre.

    “While rolling out the products, the refinery supplied at a substantially reduced price of N1,200 per litre three weeks ago, representing over 30 per cent reduction from the previous market price of about N1,600 per litre.

    “This significant reduction in the price of diesel, at Dangote Petroleum Refinery is expected to positively affect all spheres of the economy and ultimately reduce the high inflation rate in the country.”