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Dangote Denies Claims of Substandard Petroleum Products

Published by admin on July 22nd, 2024.

Dangote Denies Claims of Substandard Petroleum Products

Aliko Dangote

Aliko Dangote, President of Dangote Group, has refuted allegations that Dangote Petroleum Refinery produces substandard petroleum products. Over the weekend, Dangote highlighted the consistent demand for the refinery’s products from buyers since production began. The refinery has successfully exported its products to various European countries, Singapore, and offshore Lome.

During a tour of Dangote Petroleum Refinery & Petrochemicals and the Dangote Fertiliser Limited complex by members of the House of Representatives, Dangote expressed surprise at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for criticizing the refinery and spreading false information to justify importing inferior fuel into Nigeria.

“I encourage you to form a committee to collect samples from filling stations and compare them with our products. The test certificates being shown around are fake. Where are the laboratories that issued them? This will allow Nigerians to know the truth. It’s unfortunate that a regulator is demarketing a company it should be protecting,” Dangote stated.

He challenged NMDPRA to compare the quality of his refinery’s products with imported ones, advocating for transparency in testing. “Our doors are open for the regulator to test our products anytime. Transparency is key. It would be beneficial for the regulator to display its laboratory’s capabilities so Nigerians can compare. Our goal is to prioritize Nigeria’s growth, as our capacity is tied to the country’s development.”

Addressing the results of a credibility test conducted by the representatives, Dangote noted, “Our diesel has a sulphur content of 87.6 ppm, whereas others exceed 1,800 ppm. Although NMDPRA allows local refiners to produce diesel with up to 650 ppm sulphur until January 2025, our products are significantly lower. Next week, we aim to reach 10 ppm, meeting the Euro V standard. Imported diesel should have a maximum of 50 ppm, but the samples from filling stations are far above this standard.”

He emphasized the health and financial risks posed by high-sulphur diesel imported into Nigeria, often with dubious certifications. “The best way to verify quality is to purchase and test products directly from filling stations. I believe NMDPRA’s Chief Executive, Farouk Ahmed, speaks without fully understanding our refinery. We have exported diesel and jet fuel to Europe and Asia without complaints, receiving repeated orders which indicate satisfaction.”

Supporting Dangote, Devakumar Edwin, Vice President of Gas and Oil at Dangote Industries Limited, pointed out that Belgium and the Netherlands have banned high-sulphur diesel exports to West Africa due to carcinogenic concerns. Edwin highlighted that the Dangote Petroleum Refinery processes a variety of crudes, meeting Euro V, US EPA, European emission norms, DPR emission/effluent norms, and ARDA standards.

Edwin assured the lawmakers that the refinery’s products, produced at a $20 billion facility, meet international standards and can fully satisfy Nigeria’s demand for petrol, diesel, kerosene, and aviation jet fuel, with excess available for export.

Olakunle Alake, Vice President of the Group, expressed disappointment over accusations of monopoly, stressing the presence of multiple industry players, including NNPC with its four refineries.

Speaker of the House of Representatives, Rt. Hon. Abass, announced plans to form a committee to thoroughly investigate the quality of imported refined products into Nigeria. He praised the infrastructure of the Dangote Oil Refinery as a critical asset for Nigeria’s self-sufficiency in petroleum products, highlighting the refinery’s role amid global energy security concerns.

“Today’s visit to the Dangote Industries Oil Refinery has been enlightening, showcasing the monumental strides made in transforming petroleum production in Nigeria. This facility’s scale and sophistication are inspiring, representing hope as we address energy supply challenges,” Abass remarked.

He commended the refinery’s state-of-the-art technology as revolutionary, a testament to engineering and innovation excellence. “Each part of this facility reflects dedication and an unwavering pursuit of quality. The refinery stands as Africa’s largest oil refinery, symbolizing national pride and corporate success through visionary leadership and determination,” he added.

Acknowledging the challenges faced during the refinery’s construction, Abass lauded Dangote’s commitment to excellence amidst regulatory, supply chain, and economic challenges, particularly in light of Nigeria’s foreign exchange constraints. “Despite these hurdles, your steadfast dedication to excellence shines through,” he concluded.