Aliko Dangote, chairman of Dangote Industries Limited, has alleged that some personnel from the Nigerian National Petroleum Company (NNPC) Limited, along with oil traders and terminals, have established a blending plant in Malta.
Speaking at the House of Representatives on Monday, Dangote highlighted that an oil blending plant lacks refining capabilities but can blend re-refined oil (used motor oil treated to remove impurities) with additives to create finished lubricant products.
Dangote emphasized that the locations of these blending plants are known. “Some of the terminals, some of the NNPC people, and some traders have opened a blending plant somewhere off Malta,” he said. “We all know these areas. We know what they are doing.”
Addressing the decline in diesel prices, Dangote asserted that locally produced diesel, with 650 parts per million (ppm) and 700 ppm, is of higher quality than imported fuel. He attributed many vehicle issues to the “substandard” imported fuel and urged the House of Representatives to establish an independent committee to verify the quality of petrol at filling stations.
“I urge you to set up a committee with representatives led by a chosen honourable member to take samples from filling stations,” he said. “All the test certificates floating around are questionable. The real test is to take samples from the filling station and our production line, so you can tell Nigerians the truth.”
The House of Representatives’ joint committee on petroleum resources (downstream and midstream) launched an investigation on Monday into claims that local refineries, including the Dangote Petroleum Refinery, produce inferior products. The committee is also examining allegations that international oil companies (IOCs) in Nigeria are undermining the Dangote refinery.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Dangote refinery have been at odds recently. On July 18, Farouk Ahmed, CEO of NMDPRA, claimed that local refineries, including the Dangote refinery, produced inferior products compared to imported ones. The oil regulator also accused Dangote of maintaining a monopoly, allegations which Dangote has denied.
Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), intervened in the dispute on Monday following a meeting with Aliko Dangote, Farouk Ahmed, Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Mele Kyari, Group CEO of NNPC Limited.
(Cable)