Nigerian Legislators Probe Importation of Polluted Fuel Amidst Dangote Refinery Dispute

On Monday, Nigerian legislators launched an investigation into the reported importation of polluted fuel, aiming to resolve disputes between Aliko Dangote’s oil refinery and the regulatory body. The chairman of the legislative committee, Ikenga Ugochinyere, stated that the probe is focused on allegations of the “unregulated issuance of licenses and the purported lack of international standard laboratories” linked to the contaminated fuel in Abuja.

Aliko Dangote, President and CEO of Dangote Industries Limited, defended his refinery’s actions, expressing regret over the difficulties faced. He said, “If I knew what we are going to get into, I wouldn’t have even started it at all… and that is why right from the beginning we launched 31 projects, all concurrently… but we are in the middle of the sea, if we stop swimming we sink, the only option is just to continue swimming no matter how tired you are.”

The committee has urged all parties in Nigeria’s petroleum sector to ease the recent tensions. These tensions have been exacerbated by allegations from the regulator that Dangote was attempting to monopolize the market and that the products from his refinery were of poor quality.

Dangote described the oil industry mafia as more dangerous than the drug mafia, emphasizing their secretive operations both internally and externally, with possible insiders aiding them. He also lamented Nigeria’s long-standing fuel queues, calling it a national shame.

The largest refinery in Africa, located in Lagos, with a capacity of 650,000 barrels per day, has faced a slow start since its $19 billion facility opened over a year ago. Despite being hailed as a game-changer, the refinery has struggled to source crude oil locally and has had to rely on imports, highlighting issues of oil theft and corruption in Nigeria.

Devakumar Edwin, a senior executive at Dangote Industries, alleged that international oil companies in Nigeria are scheming to cause the refinery to fail by demanding high premiums or claiming unavailability of crude. Farouk Ahmed, chief executive of the regulatory agency, expressed concerns about Dangote’s request to halt the importation of petroleum products, fearing a potential market monopoly.

Dangote refuted these monopoly claims and invited lawmakers to inspect the refinery where its products were tested. He clarified that he did not receive any incentives from the Nigerian government for the refinery and announced the cancellation of plans to invest in the steel industry.

The origins of the dispute between Nigerian authorities and Dangote, whose companies dominate various markets, remain unclear. This conflict surfaced after President Bola Tinubu succeeded Muhammadu Buhari, a close ally of Dangote, following last year’s presidential election.

Analysts warn that such disputes could deter foreign investments and destabilize Nigeria’s economy. Nigerian economist Bismarck Rewane criticized the allegations of low-quality products from the refinery, deeming them baseless without evidence or consumer complaints, suggesting deeper underlying issues.

Likes:
0 0
Views:
68
Article Categories:
National

Comments are closed.