News

Dangote offers his world’s largest ‘refinery’ for sale over monopoly claims

Aliko Dangote, a Nigerian billionaire, has announced his desire to sell the world’s largest refinery to Nigerian National Petroleum Company Limited (NNPC).

This declaration comes amid ongoing issues about the sulfur level of petroleum products produced at the refinery, as well as a purported misunderstanding between the Dangote Group, NNPC, and the Nigeria Midstream Downstream Regulatory Authority (NMDPRA).

Former President Muhammadu Buhari commissioned the Dangote Refinery, a $20 billion investment aimed at ending Nigeria’s reliance on petroleum imports and saving around 30% of the foreign money spent on them.

Despite these lofty ambitions, the refinery has experienced numerous hurdles since it commenced operations in January 2024.

Dangote, Africa’s richest man, has urged NNPC to buy his part in the refinery, claiming that he has been wrongly characterized as a monopolist.

“Nigeria has faced a fuel crisis since the 1970s,” Dangote said. “My refinery is poised to resolve this issue, but it seems some people are uncomfortable with that.”

The billionaire’s comment comes as a setback for Nigeria’s energy sector, which had high hopes for the refinery’s ability to stabilize fuel supply and lower import costs.

Despite these ambitions, the refinery has faced challenges, including disputes over crude oil supplies and accusations of monopolistic practices.

Dangote has lamented the challenges in obtaining crude oil, pointing out that international oil firms (IOCs) charge high fees and sometimes say the commodity is unavailable.

According to reports, NNPC delivered only 6.9 million barrels of crude oil to the refinery in May 2023.

This deficit has pushed Dangote to contemplate importing crude oil from other African countries to meet the refinery’s requirements.

Dangote’s relationship with NNPC has been strained by financial concerns. The NNPC, which owns a 20% share in the refinery, has only paid 7.2% of its pledge by the date set by the Dangote Group.

Tags: dangote

Recent Posts

Portable’s Elder Sister Apologizes for His Bad Behavior

The elder sister of Nigerian singer Habeeb Okikiola Badmus, popularly known as Portable, has publicly apologized to Nigerians for his… Read More

3 hours ago

Anambra Native Doctor Akwa Ọkụkọ Tiwara Aki Arrested Over ‘Oke Ite’ Controversy

Popular Anambra native doctor, Akwa Ọkụkọ Tiwara Aki, has been taken into custody by security operatives under the Anambra State… Read More

4 hours ago

Blessing CEO Reportedly Engaged To Secret Lover

Reports of relationship expert Blessing CEO’s engagement and the identity of her supposed fiancé have set social media buzzing. Speculation… Read More

5 hours ago

RCCG’s Enoch Adeboye Orders Release of TikToker SeaKing, Distances Himself from Arrest

The General Overseer of the Redeemed Christian Church of God (RCCG), Pastor Enoch Adeboye, has directed the release of popular… Read More

6 hours ago

“Stop Begging For My Release, I’m Not Guilty Of Anything”- Kanu Issues Warning

Nnamdi Kanu, has advised against requests for his release, claiming he has not committed any crime. This was mentioned by… Read More

9 hours ago

Priscilla Ojo Officially Takes New Name ‘Hadiza Mkambala’ Following Wedding To Juma Jux

Priscilla Ojo, has taken on a new name after her wedding to Tanzanian singer Juma Jux She revealed her Tanzanian… Read More

10 hours ago

This website uses cookies.