‘Buy me out’ – Dangote challenges NNPC
In a dramatic twist to Nigeria’s fuel sector saga, Aliko Dangote, the billionaire industrialist and head of the Dangote Group, has issued a bold ultimatum to the Nigerian National Petroleum Corporation Limited (NNPC): buy me out. The offer comes in the wake of mounting tensions between Dangote Group and regulatory authorities concerning the operations of the $19 billion Dangote Refinery.
Dangote’s proposal to sell the world’s largest single-train refinery—capable of processing 650,000 barrels of crude oil per day—follows a contentious dispute that has highlighted the fraught relationship between the refinery’s management and the country’s regulatory bodies.
Dangote, known for his business acumen and expansive empire, has pointed fingers at what he describes as a “mafia” of local and foreign interests working to sabotage the refinery’s progress. His comments come amid criticisms and allegations from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which has accused the refinery of producing substandard fuel.
During a press briefing in Abuja, Farouk Ahmed, CEO of NMDPRA, claimed that the refinery’s diesel quality—measured at 665 parts per million (ppm) sulfur—fails to meet acceptable standards when compared to imported products. Ahmed’s remarks painted a bleak picture of the refinery’s potential role in Nigeria’s energy landscape, suggesting that reliance on the Dangote refinery for fuel might not be prudent. He also revealed that the refinery has yet to secure a license for operational commencement, a significant hurdle in the path to full-scale operations.
Ahmed’s statements further fueled speculation that the NMDPRA’s scrutiny might be influenced by external pressures and an alleged lack of crude oil supply from international oil companies (IOCs). However, he firmly denied that regulatory oversight was intended to obstruct Dangote’s business.
In a candid interview with Premium Times, Dangote dismissed the regulatory criticisms as baseless. “Let them (NNPCL) buy me out and run the refinery the best way they can,” he declared. Dangote labeled the accusations of monopolistic practices as “incorrect and unfair,” but remained steadfast in his challenge: if NNPC feels that his involvement is an impediment, they should take over the refinery operations.
The Dangote Refinery, inaugurated last year, represents a critical component in Nigeria’s strategy to reduce its dependency on imported refined products. The refinery’s operational success is projected to save the country approximately 30 percent of the total foreign exchange spent on petroleum imports—a significant economic benefit for a nation long plagued by fuel supply crises.
“The refinery could be a game-changer in addressing Nigeria’s perennial fuel shortages,” Dangote asserted. “We’ve been grappling with fuel crises since the 1970s. This facility has the potential to alleviate that problem, but it seems some individuals are uncomfortable with my role in this solution. So I am prepared to step aside and let NNPC take over if that’s what it takes.”
The dispute highlights a broader issue within Nigeria’s oil and gas sector, where regulatory frameworks and business interests often clash. The Dangote Refinery’s journey, from its ambitious inception to its current regulatory challenges, reflects the complexities and high stakes involved in transforming Nigeria’s energy sector.
As the situation unfolds, the Nigerian public and industry stakeholders are left to ponder the implications of Dangote’s offer. Should the NNPC take up the challenge, it will not only need to address the immediate operational and regulatory issues but also navigate the broader economic and strategic ramifications of assuming control over such a significant asset.
In the meantime, Dangote’s audacious proposal underscores a pivotal moment for Nigeria’s oil sector—one where the paths of regulatory oversight, business ambition, and national interest converge. Whether the NNPC will seize the opportunity to buy out Dangote and manage the refinery remains to be seen, but the outcome will undoubtedly shape the future of Nigeria’s fuel landscape.
