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

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