The Dangote Refinery has refuted claims made by Farouk Ahmed, the CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDRA), regarding the quality of its petroleum products. Ahmed stated that the refinery is still in its pre-commissioning stage and has not been licensed, asserting that Dangote Refinery, along with other local refineries, produces inferior products compared to imported ones.
Dangote Industries Limited (DIL) quickly responded to these allegations. Anthony Chiejina, the company’s spokesperson, condemned Ahmed’s claims, emphasizing that the refinery’s diesel is 80% superior to the imported diesel currently available in Nigeria. Chiejina labeled the allegations as false, baseless, and intended to tarnish the reputation of the $20 billion refinery, which aims to produce top-quality petroleum products that meet stringent international standards.
Chiejina highlighted that until late last year, diesel imports to Nigeria contained up to 7,000 parts per million (ppm) of sulfur, a significantly higher level than what Dangote Refinery currently produces. He also refuted the notion that medium-level sulfur diesel is only for off-road use, pointing out that this would imply that all diesel imports over the past twenty years have been damaging equipment.
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He further explained that the recent reduction in diesel prices by 37% was not due to quality issues but was driven by the refinery’s commitment to national patriotism and market dynamics. Chiejina noted that high-sulfur diesel imports were previously sold at higher prices, questioning why lower prices were never observed if high-sulfur diesel was cheaper.
Energy experts caution that the ongoing dispute between the NMDRA and Dangote Refinery could hinder positive developments in Nigeria’s midstream and downstream petroleum sectors. The refinery had been seen as a beacon of hope for reducing petroleum importation costs, but unresolved issues may slow progress in the sector
