Tag: Dangote

Amidst lingering crisis, Dangote Refinery has revealed that the Nigeria National Petroleum Company Limited (NNPC) is supplying insufficient crude oil for its production demand, hence it is planning to source from Brazil and the USA.

The President of Dangote Group, Aliko Dangote and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, alongside NNPCL, had been locked in a dispute, ranging from monopoly allegations to supply of crude for the refinery, substandard fuel imports and ownership of blending plants in Malta.

However, Dangote, in a new revelation, said for the $20 billion refinery to meet its production demand, it must look for other sources of crude oil supply overseas as the NNPCL allocation is insufficient.

He said the refinery, which has the capacity of refining 650,000 per day, could not depend on short supply from Nigeria’s oil company.

Rabiu Umar, Group Chief Commercial Officer, Dangote Industries Limited, yesterday told newsmen in Kano that the NNPC supplies only 33 percent of crude to the refinery, disclosing that it has to look elsewhere to source the remaining 67 percent to meet its production capacity.

According to Umar, the refinery has concluded plans to supply crude oil from Brazil and America by August.

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“First of all the refinery is here in Nigeria. We have crude oil here in Nigeria. We thought we would get the crude oil here and refine it here in our refinery for the benefit of the country and the citizens.

“Unfortunately, the country takes the crude oil overseas for refining while we have a refinery, one of the biggest in the world.

“So, we will not stay idle. We have to look for other sources to meet our production capacity. If we get the crude oil supply here in the country we would have no reason to go overseas.

“Even now, we are planning to supply crude oil from countries like Brazil and USA,” he said.

He said the refinery had commenced supplies to foreign countries since February, disclosing that they receive orders from different countries for supply, especially aviation fuel.

Netizens have called on the Federal Government to support local investors and visionary business leaders, specifically highlighting Aliko Dangote, Africa’s richest man, as a national titan.

In recent weeks, Dangote has been embroiled in a conflict with regulatory officials over his refinery located in Lagos State’s Ibeju-Lekki region.

The tension escalated when the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced that the government had not yet licensed the refinery to commence operations.

However, Dangote dismissed the claim by critics that the quality of diesel produced by Dangote Refinery in terms of sulphur is the lowest in West Africa.

Dangote made the rebuttal last week during a visit by a delegation of the House of Representatives to the refinery in Lagos.

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“Another complaint was about the initial drop in diesel prices. Even at 650-750 PPM, our diesel quality was better than imported fuel. Problems with vehicles are due to bad imported fuel. We still stand by our quality, and you can verify it by checking samples from filling stations,” the richest man in Africa said.

Using the hashtag #IStandWithDangote, which is currently trending on X, numerous commentators praised Dangote, asking government to support local business investors and initiatives. 

• Otedola seeks protection of Dangote refinery

The face-off between  Dangote Group President Aliko Dangote and oil sector regulators raged on yesterday with  Group Chief Executive Officer of  Nigerian National Petroleum Company Limited(NNPCL), Mele Kyari, challenging him to name the officials he alleged owned a blending plant in Malta. 

Kyari  said this was necessary given the ‘’grave implications’’ the action has  on ‘’national energy security.’’

The NNPCL boss threw the challenge just as Dangote who is the promoter of the 650,000 barrels per day Dangote Petroleum Refinery in Ibeju-Lekki, Lagos, got the support of Guregu Power PLC Chairman, Femi Otedola in the feud.

Development Agenda for Western Nigeria (DAWN) Commission urged President Bola Ahmed Tinubu, to wade into the controversy.

Kyari, in a post yesterday on his X(formerly Twitter), said he has no crude oil blending plant anywhere in the world. He also stated that he had no knowledge of any NNPCL officials that do but vowed to sanction any brought to his know.

His tweet read in part: “For further assurance, our compliance sanction grid shall apply to any NNPCL employee who is established to be involved in doing so if availed and I strongly recommend that such individuals be declared public and be made known to relevant government security agencies for necessary actions given the grave implications for national energy security.” 

Kyari explained that  he decided to respond to the allegation by Dangote because he had been ‘’inundated by inquiries from family members, friends, and associates on the public declaration by the President of Dangote Group.’’

He added: “ I do not own or operate any business directly or by proxy anywhere in the world with the exception of a local mini-Agric venture. Neither am I aware of any employee of the NNPC, that owns or operates a blending plant in Malta or anywhere else in the world.

“A blending plant in Malta or any part of the world has no influence over NNPCL’s business operations and strategic actions.”  

Otedola,  a billionaire businessman and Dangote’s close associate said Nigeria, should ‘’recognise and support’’ business titans like  Dangote, as done in other climes.

The Guregu Energy PLC boss listed the United States, South Africa, Vietnam, South Africa, Brazil, and China as countries that intentionally encourage their business ‘’titans.’’

Read Also: ‘Dangote has broken every boundary in business, let’s support him’ – Femi Otedola

He described   Dangote oon his X as  the largest private sector employer of labour in the country, and his companies are among the largest taxpayers.

His tweet reads in part: “My brother, the visionary, has built the largest single train refinery in the world, not in Kano, but in Lagos State. He is the owner of the second-largest sugar refinery in the world, also in Lagos State, and the largest cement factory in the world, not in Kano, but in Kogi State. ‘’Additionally, he has established one of the second-largest fertiliser plants in the world, soon to surpass the biggest one in Qatar, also in Lagos State. Furthermore, he has built a fertiliser plant in Lagos that already exports globally. Aliko Dangote is a titan that God created specially for mankind.

“Aliko Dangote is also the largest private sector employer of labour in the country, and his companies are among the largest taxpayers.

‘’ In fact, the Dangote Group often pays more in taxes than the top banks combined. If not for him, we would still be importing cement. His contributions extend beyond industrial facilities to critical infrastructure, having built major roads such as the Apapa Oshodi-Owonrosoki Express Road, Wharf Road, and the Obajana-Kabba Road.

“Countries in the nascent stages of industrialisation require visionary leaders. This is why it’s no surprise that the United States was built by the vision and tenacity of a few remarkable individuals—Cornelius Vanderbilt, John D. Rockefeller, Andrew Carnegie, J.P. Morgan, and Henry Ford—the men who built America’s industrial landscape. These men left the world without these assets but left behind a legacy that has kept their country thriving generation after generation.

‘’Their contributions were immortalised not in the material wealth they amassed but in the enduring institutions and industries they established. These visionaries were also supported by their government, which recognised the importance of fostering local champions.’

“Similarly, today’s tech giants like Microsoft and Tesla received substantial support from the US Government. For example, in January 2010, the Department of Energy issued a $465 million loan to Tesla Motors to produce specially designed, all-electric plug-in vehicles and to develop a manufacturing facility in Fremont, California to produce battery packs, electric motors, and other powertrain components for powering these innovative vehicles. This initiative is part of broader efforts, such as the federal EV-charging program supported by the infrastructure law known as the National Electric Vehicle Infrastructure program or NEVI.

“In India, the government has been instrumental in supporting business titans like Gautam Adani and Mukesh Ambani. Their companies have received significant backing to grow and expand, contributing substantially to India’s economic growth and global business footprint.

“There are also records of emerging market countries like Vietnam, South Africa, Brazil, and China where their governments have supported local businesses to jump-start industrialization. In Vietnam, the government has provided various incentives to tech companies, fostering a rapidly growing technology sector. In South Africa, government support for the mining industry has been crucial in maintaining its global competitiveness. Brazil has seen substantial government investment in its agricultural sector, transforming it into one of the world’s leading food exporters. In China, government backing for companies like Huawei and Alibaba has propelled them to global leadership in technology and e-commerce.”

Billionaire businessman and chairman of Geregu Power PLC and FBN Holdings, Femi Otedola has expressed strong support for the chairman of Dangote Industries Limited, Aliko Dangote, and his refinery project.

Recall that a heated dispute between Africa’s richest man and Nigeria’s oil sector regulators has set many tongues wagging.

As the conflict heightened, Dangote offered to sell his oil refinery to the Nigerian National Petroleum Company (NNPC) Limited on July 22.

Reacting on Tuesday, July 23, Otedola on his verified X handle (formerly Twitter) emphasised that Dangote is the largest private sector employer of labour in the country, and his companies are among the largest taxpayers.

He tweeted: “My brother, the visionary, has built the largest single train refinery in the world, not in Kano, but in Lagos State. He is the owner of the second-largest sugar refinery in the world, also in Lagos State, and the largest cement factory in the world, not in Kano, but in Kogi State. Additionally, he has established one of the second-largest fertilizer plants in the world, soon to surpass the biggest one in Qatar, also in Lagos State. Furthermore, he has built a fertilizer plant in Lagos that already exports globally. Aliko Dangote is a titan that God created especially for mankind.

“Aliko Dangote is also the largest private sector employer of labour in the country, and his companies are among the largest taxpayers. In fact, the Dangote Group often pays more in taxes than the top banks combined. If not for him, we would still be importing cement. His contributions extend beyond industrial facilities to critical infrastructure, having built major roads such as the Apapa Oshodi-Owonrosoki Express Road, Wharf Road, and the Obajana-Kabba Road.

“Countries in the nascent stages of industrialization require visionary leaders. This is why it’s no surprise that the United States was built by the vision and tenacity of a few remarkable individuals—Cornelius Vanderbilt, John D. Rockefeller, Andrew Carnegie, J.P. Morgan, and Henry Ford—THE MEN WHO BUILT America’s industrial landscape. These men left the world without these assets but left behind a legacy that has kept their country thriving generation after generation. Their contributions were immortalized not in the material wealth they amassed but in the enduring institutions and industries they established. These visionaries were also supported by their government, which recognized the importance of fostering local champions.

“Similarly, today’s tech giants like Microsoft and Tesla received substantial support from the US government. For example, in January 2010, the Department of Energy issued a $465 million loan to Tesla Motors to produce specially designed, all-electric plug-in vehicles and to develop a manufacturing facility in Fremont, California to produce battery packs, electric motors, and other powertrain components for powering these innovative vehicles. This initiative is part of broader efforts, such as the federal EV-charging program supported by the infrastructure law known as the National Electric Vehicle Infrastructure programme, or NEVI.

“In India, the government has been instrumental in supporting business titans like Gautam Adani and Mukesh Ambani. Their companies have received significant backing to grow and expand, contributing substantially to India’s economic growth and global business footprint.

“There are also records of emerging market countries like Vietnam, South Africa, Brazil, and China where their governments have supported local businesses to jump-start industrialization. In Vietnam, the government has provided various incentives to tech companies, fostering a rapidly growing technology sector. In South Africa, government support for the mining industry has been crucial in maintaining its global competitiveness.

Read Also: Lokpobiri wades in NMDPRA, Dangote Refinery feud

“Brazil has seen substantial government investment in its agricultural sector, transforming it into one of the world’s leading food exporters. In China, government backing for companies like Huawei and Alibaba has propelled them to global leadership in technology and e-commerce.

“In Nigeria, we have our own titans, and it is imperative that we recognize and support them. Aliko Dangote has broken every boundary in worldwide business and industry. His contributions are not just a testament to his brilliance but a beacon of what is possible when vision meets opportunity.

“Supporting local champions like Dangote is crucial for our national development and economic independence. Let us continue to foster and support these visionaries who drive our nation’s progress…”

President of Dangote Group, Aliko Dangote, has asserted that products refined at the Dangote Petroleum Refinery & Petrochemicals, the world’s largest single train refinery, are of superior quality compared to imported equivalents and meet international standards.

He spoke during a tour of Dangote Petroleum Refinery and the Dangote Fertiliser Limited complex by members of the House of Representatives led by Speaker Tajudeen Abbas who observed the testing of Automotive Gas Oil (diesel) from two petrol stations with
Dangote Petroleum Refinery

The diesel samples were procured from two well-known filling stations near Eleko junction along the Lekki Epe Expressway, by House members.

Chairman of the House Committee on Downstream, Hon. Ikeagwunon Ugochinyere, and Chairman of the House Committee on Midstream, Hon. Okojie Odianosen, oversaw the collection of samples from the Mild Hydro Cracking (MHC) unit of Dangote refinery for testing of all the samples.

Lab tests revealed that Dangote’s diesel had a sulphur content of 87.6 ppm (parts per million), whereas the other two samples showed sulphur levels exceeding 1800 ppm and 2000 ppm respectively.

Dangote emphasised that these findings debunked claims by Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Authority, who recently asserted that imported diesel surpasses domestically refined products.

Ahmed had alleged that Dangote refinery and other modular refineries like Waltersmith and Aradel produced diesel with sulphur content ranging from 650 to 1200 ppm—a statement criticised by many Nigerians as a tactic to favour imported products over local ones.

Dangote openly challenged the regulator to compare the quality of refined products from his refinery with those imported, advocating for an impartial assessment to determine what best serves the interests of Nigerians.

“We produce the best diesel in Nigeria. It’s disheartening that instead of safeguarding the market, the regulator is undermining it.

“Our doors are open for the regulator to conduct tests on our products anytime; transparency is paramount to us. It would be beneficial for the regulator to showcase its laboratory to the world so Nigerians can compare. Our interest is Nigeria first because if Nigeria doesn’t grow, we have limited capacity for growth.

“Right Honourable Speaker and esteemed members, you’ve witnessed the results of the credibility test. I appreciate your wise counsel in procuring samples from the filling stations alongside our refinery’s product.

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“Ours shows a sulphur content of 87.6 ppm, approximately 88, whereas the others exceeded 1,800 ppm. Although the NMDPRA permits local refiners to produce diesel with sulphur content up to 650 ppm until January 2025, as approved by ECOWAS, ours is significantly lower.

“Next week, we aim to achieve 10 ppm, aligning with the Euro V standard. Imported diesel is capped at 50 ppm but as you’ve seen, those from the stations, imported by major marketers, fall well outside this standard.”

Dangote pointed out that high-sulphur content diesel regularly imported into the country often comes with dubious certifications.

He emphasised that the most effective method to verify the quality is to purchase the product directly from filling stations and conduct credibility tests. According to him, this issue has resulted in health risks and financial losses for Nigerians.

“Dubious certifications often accompany the importation of high-sulphur diesel into Nigeria, causing both health risks and financial losses for Nigerians,” noted Dangote.

“The best method to verify this is to purchase the product directly from filling stations where end-users obtain it. I believe Farouk Ahmed speaks without sufficient knowledge of our refinery.

“We have successfully exported diesel and jet fuel to Europe and Asia without any complaints; in fact, we have received repeated orders, indicating satisfaction with our products.”

Supporting Dangote’s assertion, VP of Gas and Oil at Dangote Industries Limited, Devakumar Edwin, highlighted recent actions by European countries like Belgium and the Netherlands.

“These countries have expressed concerns about the carcinogenic effects of high-sulphur diesel being dumped into the Nigerian market, prompting them to impose bans on such fuel exports to West Africa.”

Edwin informed the federal lawmakers that the Dangote Petroleum Refinery, designed to process a wide range of crudes including various African and Middle Eastern crudes, as well as US Light Tight Oil, conforms to Euro V specifications.

He addex it is designed to comply with US EPA, European emission norms, Department of Petroleum Resources (DPR) emission/effluent norms, and African Refiners and Distribution Association (ARDA) standards.

Noting that products from the $20 billion facility are of high quality and meet international standards, Edwin said it has the capacity to meet 100% of Nigeria’s demand for petrol, diesel, kerosene and aviation Jet, with surpluses available for export.

The Group’s VP, Olakunle Alake, expressed disappointment over accusations of monopoly against the Dangote Group.

He stressed that there are multiple players in the industry, including the Nigerian National Petroleum Corporation (NNPC), which operates four refineries.

Expressing concern over the controversy surrounding the quality of imported refined products into Nigeria, Abass stated that the Green Chamber would establish a committee to investigate the matter thoroughly. He emphasised that sampled products from various sources would undergo testing as part of this initiative.

The Speaker also expressed admiration for the infrastructure at the Dangote Oil Refinery, describing it as a significant asset in Nigeria’s quest for self-sufficiency in petroleum products.

He noted the refinery has positioned itself as a pivotal player, especially at a time when global concerns over energy security and sustainability are paramount.

“Today’s visit to the magnificent facilities of Dangote Industries Oil Refinery section has been nothing short of enlightening. It has afforded us a rare opportunity to witness first-hand the monumental strides that your organisation has made in transforming the landscape of petroleum production in Nigeria.

“The sheer scale and sophistication of this facility are awe-inspiring; it stands as a beacon of hope for our country as we navigate through the turbulent waters of energy supply challenges,” he said.

Commending the state-of-the-art technology implemented at the petroleum refinery, the Speaker praised it as revolutionary and a shining example of engineering and innovation excellence.

“Each corner of this facility resonates with the echoes of hard work, dedication, and an unyielding pursuit of quality. It is evident that every drop produced here carries not just oil but also the hopes and dreams of millions who yearn for a brighter future.

“We are deeply impressed by what we have seen during this visit which confirms the rating of this industry as the single largest oil refinery in Africa. This remarkable achievement does not merely reflect corporate success; it symbolises national pride, a tribute to what can be accompanied when visionary leadership meets relentless determination,” he said.

Acknowledging the numerous challenges likely encountered during the construction of the refinery, the Speaker lauded Dangote for his steadfast commitment to achieving excellence.

“I would like to take this opportunity to acknowledge the myriad challenges that have beset this remarkable facility. The regulatory hurdles that often loom like dark clouds over progress, the complexities surrounding crude oil supplies that can stifle even the most ambitious endeavours, and the daunting economic landscape we navigate especially in these times when our economy grapples with foreign exchange constraints are all formidable adversaries. Yet, despite these tribulations, your unwavering commitment to excellence shines through,” he attested.

• Subjects product to on the spot test

THE President of the Dangote Industries Limited (DIL), Aliko Dangote, has called on the House of Representatives to investigate the quality of diesel and petrol at filling stations. Dangote made the call yesterday when he received the leadership of the House of Representatives led by Speaker Tajudeen Abbas and his deputy Benjamin Kalu in his refinery located at Ibeju-Lekki, Lagos.

Decrying the damage being done to vehicles and engines by substandard products, he also called on the House to investigate the quality of laboratories being used to test imported products and compare that with the one at the Dangote Refinery, admonishing the lawmakers to set up a committee to test products at  various filling stations across the country.

Besides, Dangote offered his refinery products for independent testing as that would only attest to their quality while exposing the problem with some of the products being sold by other players in the sector.

The DIL also condemned the tirade by the NMDPRA Chief Executive, Farouk Ahmed, on the quality of its products, insisting that its refined diesel meets approved standard.

The DIL also proved its quality claims to members of the House of Representatives who took a tour of the Dangote Refinery, yesterday.

Ahmed, in an earlier interview with journalists, had alleged that local refineries, including the Dangote refinery, are producing inferior products compared to imports.

“The false and misleading allegations made by some media outlets that the Dangote Refinery is producing substandard diesel which is why it reduced the price by 37 per cent, is baseless and mischievous.

“Until late last year, diesel imports into Nigeria were up to 7,000 parts per million (ppm) of sulphur which has been going on for many years. Our diesel is produced currently at significantly lower levels of sulphur; as such, we find baseless the allegation that the reason for the reduction is linked to quality.  What we are producing is 80 per cent of what is being imported into the country.

“Another inaccurate assertion is that Medium Level Sulphur diesel is meant for off-road use. This is a completely false statement as this would have invariably meant that all the imports for the last 20 years have been damaging equipment.

“Thirdly, diesel imports for the high sulphur grade have been at significantly higher prices until we started operation. If indeed high sulphur diesel is sold at lower prices how come we never saw the lower prices until now?” the DIL said in a statement.

At the Dangote refinery, diesel bought from two filling stations along the Lekki-Ajah axis was subjected to tests at the refinery’s laboratories. The tested diesel from other stations was bought in the presence of the lawmakers, while that from the Dangote Refinery was taken from production also in the presence of the lawmakers.

Read Also: Nigeria will be better place if we’ve more men like Dangote – Daughter

Two tests were conducted; a test of the sulphur level and a flash test. While all crude-based products contain some level of sulphur, high sulphur levels cause damage to engines and vehicle components.

The flash point refers to the lowest temperature at which the application of the ignition source causes the vapours above the liquid to ignite with the minimum expected flash point at 66.

The results showed that the sulphur content in the diesel from other stations was above 2,631 and 1,829; much higher than the recommended level while the tests for the flash point showed results of 26 and 63 respectively for the diesel from other stations. Both results fell short of the recommended minimum of 66.

The results for the diesel from Dangote turned out to be 87.6 ppm for sulphur and 96 flashpoints.

For Dangote, the result does not only show the reality of products from his refinery, but it also shows that substandard petroleum products are being imported into the country and sold to unsuspecting Nigerians.

Fatima, daughter of Africa’s richest man, Aliko Dangote, has expressed admiration for her father’s unwavering commitment to the Nigerian dream.

Speaking at a media session at the Dangote Petroleum Refinery in Lagos, Fatima lauded her father’s tenacity and work ethic, stating that having more leaders like him would greatly benefit the country.

Read Also: Reps to investigate issues on Dangote Refinery

She expressed wonder at her father’s relentless drive, saying, “I have not seen anyone as hardworking as my father…sometimes I wonder how he never gives up. I wish we had a few more men like my father in Nigeria, the country would be a better place”.