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Reasons Agbakoba Cautions NNPC Against Acquiring Dangote Refinery

Published by admin on July 23rd, 2024.

Reasons Agbakoba Cautions NNPC Against Acquiring Dangote Refinery

By Gilbert Ekugbe

Olisa Agbakoba, a prominent Senior Advocate of Nigeria, has issued a warning to the Nigerian National Petroleum Company Limited (NNPCL) against taking control of the Dangote Refinery.

Agbakoba’s remarks came in response to a suggestion from the business magnate Aliko Dangote, who proposed that the NNPC could purchase the refinery if doing so would address allegations of monopoly against him.

Dangote’s statement emerged amid ongoing debates about his refinery, which has a production capacity of 650,000 barrels per day. Farouk Ahmed, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, had previously criticized the quality of fuels produced by Dangote and other local refineries.

Ahmed stated, “We cannot rely solely on one refinery for the nation’s fuel supply, particularly since Dangote is requesting a halt on all petroleum imports, especially AGO, and directing all marketers to his refinery. This situation poses a threat to our energy security and market fairness due to potential monopoly.”

In reaction to Ahmed’s comments, Dangote expressed his willingness to sell the refinery to the government. “If the NNPCL wants to buy me out and manage the refinery, they are welcome to. The accusation of monopoly is both incorrect and unfair, but if a buyout removes this label, so be it,” Dangote remarked.

Agbakoba, however, opposed this idea in a brief statement on Monday. He questioned, “Why should the government take over a facility built by a private individual? Why hasn’t the Federal Government been able to repair its own refineries over the years?”

He emphasized that allowing a capable businessman to be blamed for holding the country hostage is unnecessary when there is a straightforward alternative. Agbakoba advocated for the improvement of national infrastructure and services, including electricity, potable water, healthcare, education, roads, and food security.

“The solution is simple: let Nigeria function properly. Provide reliable electricity, adequate food, clean water, employment, financial stability, education, healthcare, and good roads,” Agbakoba asserted.

He insisted that this approach, rather than taking over a privately-built refinery, is the correct way to eliminate any perceived monopoly by Dangote.

Agbakoba also voiced his support for Dangote and other local refineries, noting that their operations would enhance the country’s refining capacity and reduce dependency on fuel imports.

Previously, Agbakoba had urged President Bola Tinubu to reform the nation’s energy sector and regulatory framework.