The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, has announced his effort to settle the discord between the chief executive officer of Dangote group, Aliko Dangote, and the supervising agencies in the oil and gas sector in Nigeria.
This intervention occurs following the accusations and counter accusations by Dangote and the oil regulating agencies over alleged moves to sabotage the smooth running of the new refinery by denying it of feed stock.
Senator Lokpobiri met with Dangote and the heads of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPCL) on Monday.
In a statement released on Monday night by the Special Adviser on Media and Communication to Lokpobiri, Nneamaka Okafor, he said: “The stakeholders expressed their gratitude to the minister for his exemplary leadership and timely intervention in facilitating this crucial dialogue.
“The meeting focused on finding a sustainable and lasting solution to the current impasse affecting the Dangote Refinery, with all parties demonstrating a commitment to collaborative and proactive problem-solving”, he added.
Okafor stated that the minister emphasised the importance of cooperation and synergy among all stakeholders to ensure the success and optimal performance of the oil and gas sector, “which is pivotal for Nigeria’s economic growth and energy security.”
He said the meeting marked a significant step towards resolving the challenges.
Background
Dangote had claimed that the International Oil Companies (IOCs) in Nigeria were actively attempting to undermine the Dangote Oil Refinery and Petrochemicals.
He also accused the IOCs of intentionally obstructing the refinery’s efforts towards purchasing local crude by inflating premium prices above market rates, thereby forcing the refinery to import crude from distant countries like the United States, leading to significantly higher costs.
The NMDPRA, on its part, had alleged that the Dangote Refinery was producing inferior products compared to imported ones.
Farouk Ahmed, the head of the NMDPRA, had said that the quality of diesel produced by Dangote was 665 ppm, which he considered inferior.
Dangote was also accused of requesting to be the sole provider of refined crude oil products to the country and the suspension of licences of other oil marketers.
The discord between the parties have raised public concerns and criticisms, with many Nigerians urging the federal government to act in the interest of the nation.
The back and forth between both parties is unsettling as it shows a disharmony between stakeholders in the country. Why would the NNPCL prefer to import petroleum products when there is a refinery in the country? Why is Dangote complaining of being sabotaged? Why do we have to depend on foreign products, can’t the refinery in the country produce the same quality? Who are those that want the country to remain hard?
