Business

Africa’s richest man Dangote says International Oil Companies are frustrating his refinery

The Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, has accused International Oil Companies (IOCs) operating in Nigeria of sabotaging the Dangote Oil Refinery and Petrochemicals.

Edwin said the IOCs were deliberately frustrating the refinery’s efforts to buy local crude oil by imposing exorbitant premium prices. This has forced the company to import crude from distant countries such as the United States, thus incurring additional costs, according to Billionaires.Africa.

Edwin delivered his remarks during a Dangote Group for Energy Editors training program, the platform noted. Also, he expressed concerns over the activities of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), criticizing the regulator for indiscriminately granting licenses to marketers, allowing the import of dirty, refined products into Nigeria.

“The Federal Government issued 25 licenses to build refineries, and we are the only one that delivered on our promise. We deserve every support from the Government,” Edwin stated.

“From the start of production, more than 3.5 billion liters, which represents 90 percent of our output, have been exported. We call on the Federal Government and regulators to give us the necessary support to create jobs and prosperity for the nation,” he said.

Speaking about the challenges facing the refinery, Edwin claimed that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is seeking to allocate crude oil for the refinery, but that the IOCs are intentionally obstructing efforts to purchase local crude.

“The IOCs are either asking for ridiculous premiums or claiming that crude is unavailable. At some point, we paid $6 above the market price, forcing us to reduce our output and import crude from as far as the US, increasing our production costs,” Edwin lamented.

He noted that the IOC’s stance aims to maintain Nigeria’s reliance on the export of crude oil and the import of refined petroleum products.

“The IOCs export raw materials to their home countries, creating employment and wealth for themselves while dumping expensive refined products into Nigeria. This exploitation has led to unemployment and poverty in Nigeria and Sub-Saharan Africa,” Edwin claimed.

In this regard, the Dangote Group has called on the Nigerian authorities to intervene and ensure the full implementation of the Petroleum Industry Act (PIA) to protect Nigeria’s interests.

“The government of Ghana has banned the importation of highly contaminated diesel and PMS. It is regrettable that Nigeria continues to grant import licenses despite our capacity to produce nearly double the amount needed locally and export the surplus. ECOWAS regulations have prohibited the import of highly contaminated diesel since January 2021,” he said.

Abu Mubarik

Abu Mubarik is a journalist with years of experience in digital media. He loves football and tennis.

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