Minister Steps In to Resolve Dangote Refinery Dispute
Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), has stepped in to address the ongoing dispute involving Aliko Dangote, President of Dangote Group, and key regulatory agencies overseeing the oil and gas sector.
On Monday in Abuja, Lokpobiri convened a meeting with Dangote, as well as the heads of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Company Limited (NNPCL).
This intervention follows a series of allegations and counter-allegations between Dangote and the regulatory agencies concerning the Dangote Refinery. Dangote has claimed that International Oil Companies (IOCs) in Nigeria are obstructing his refinery’s operations by inflating the price of local crude, forcing the refinery to import more expensive crude from countries like the United States.
Conversely, the NMDPRA has alleged that the Dangote Refinery produces lower-quality products compared to imported alternatives. Farouk Ahmed, head of the NMDPRA, criticized the quality of diesel produced by Dangote’s refinery, citing a standard of 665 ppm, which he deemed substandard.
The public debate surrounding these issues has prompted calls for federal action to resolve the situation. In response, Lokpobiri’s office issued a statement noting the positive reception of his intervention. According to Nneamaka Okafor, Special Adviser on Media and Communication to Lokpobiri, the minister’s leadership and intervention were crucial in facilitating dialogue among the stakeholders.
“The meeting was productive, focusing on finding a sustainable solution to the current issues affecting the Dangote Refinery,” Okafor said. He emphasized the need for cooperation and synergy among all parties to ensure the sector’s success, which is vital for Nigeria’s economic growth and energy security.
### House of Representatives Launches Investigation
In parallel, the House of Representatives’ Joint Committee on Midstream and Downstream Petroleum is conducting a thorough investigation into allegations of substandard petroleum products, the unavailability of crude oil to domestic refineries, and related issues. The committee has invited all relevant stakeholders to shed light on the situation.
Committee Chairman Ikenga Imo Ugochinyere announced at the investigation’s opening that the House had adopted a motion on July 9, 2024, calling for a comprehensive legislative forensic investigation into the challenges facing Nigeria’s downstream and midstream petroleum sectors.
The committee will scrutinize the integrity of petroleum product testing processes in the country, including the capacity and credibility of testing labs, local intermediaries, and their laboratories. They will also investigate issues such as the indiscriminate issuance of licenses, alleged price interventions, and the shifting timelines for refinery rehabilitation.
The investigation will extend to examining the role of middlemen in crude trading, the presence of international standard laboratories, and the influx of contaminated products. The committee plans to visit various filling stations, depots, and tank farms to take samples, verify the quality of imported products, and assess the testing capabilities of all refineries and product handling outfits.
Ugochinyere emphasized, “We will ensure a thorough review of all aspects of the petroleum sector to address these critical issues and ensure transparency and accountability.”
(Dailyturst)