NMDPRA VS DANGOTE: DR. WISDOM ENANG HIGHLIGHTS INHERENT LESSONS, PROFFERS THE WAY FORWARD
In view of the ongoing feud between the NMDPRA (Nigerian Midstream and Downstream Petroleum Regulatory Authority) and the Dangote Refinery, an Adjunct Professor of the North Dakota University, USA, Engr. (Dr.) Wisdom Patrick Enang, says a resolution that prioritizes the nation’s interests over personal agenda is imperative.
The globally renowned energy expert stated this on Friday, August 16, in Uyo while speaking with newsmen.
Dr. Enang opined that by fostering a transparent, efficient, and predictable regulatory environment, Nigeria can attract investments, create jobs and ensure the sustainable development of its oil and gas sector.
He further explained that achieving this requires a concerted effort from the government, regulatory bodies, and the private sector to build trust, strengthen institutions and prioritize the long-term interests of the nation.
The Akwa Ibom born, British trained Chartered Engineer also revealed that the conflict between Dangote and the NMDPRA was more than a personal or corporate battle, stressing that it is a critical test of Nigeria’s regulatory integrity and economic resilience.
“The stakes are high, and the path forward demands courage, clarity, and an unwavering commitment to the principles of fair play and public welfare”, he passionately opined.
Known for his massive and sustained advocacy for the adoption of a value-driven approach to leadership and governance, Dr. Wisdom Enang stressed that recent allegations by Farouk Ahmed, Head of the NMDPRA against Dangote’s $20 billion USD refinery has stirred significant controversy.
“Ahmed’s claims that the refinery’s products contain unsafe levels of Sulphur, and that Dangote aims to monopolize the industry are serious. Yet, the absence of concrete evidence and basic regulatory infrastructure to validate these claims raises serious doubts about their legitimacy, in addition to highlighting profound system flaws within Nigeria’s regulatory framework.”
The renowned Fellow of both the Nigerian Society of Engineers (FNSE) and the Nigerian Institution of Safety Engineers (FNISafetyE) also informed that the NMDPRA’s inability to substantiate its claim with scientific proof further undermines its credibility, giving credence to the possibility that the motive is driven by political pressure, personal vendetta or corporate sabotage.
“This controversy underscores the inadequacy of Nigeria’s regulatory infrastructure. The reliance of the NMDPRA on third party laboratories for testing petroleum products is a glaring deficiency. How can a regulatory body enforce safety standards without the fundamental tools to verify compliance? “.
“This scenario is not just embarrassing for the nation; it also poses a risk to public safety and economic stability as lack of proper testing facilities means potentially hazardous products could reach consumers.”
Dr Enang, a member of the prestigious Havard Business Review Advisory Council also averred that whilst monopolistic practices are valid concerns in any capitalist economy, these concerns can easily be addressed by boosting the nation’s domestic refining capacity, as well as ensuring the inclusion of anti-monopoly clauses in the terms of agreement used to facilitate the sale of crude to domestic refineries in Naira.
Speaking further, the astute scholar warned against the use of imported petroleum products as a long-term anti-monopoly safeguard, arguing instead that the perceived benefits will be completely outweighed by negative economic implications which includes: increased demand for already scarce FX for the importation of petroleum products; exposure to frequent undulations in domestic petroleum product supply and pricing; and stagnation in the nation’s midstream and downstream sector which invariably limits Nigeria’s economic potentials in the petroleum sector to just 15% of the entire value-chain, which is obtained from the exportation of raw crude.
“Also, in view of the ongoing supply shortages and long queues at petrol stations, which has resulted in PMS (Premium Motor Spirit) being sold for over N350 per liter above its normal retail price in most parts of the country, efforts need to be intensified towards onboarding as many domestic refineries as possible, to alleviate these shortages.”
While appreciating President Tinubu for brokering a reconciliatory meeting between the NMDPRA and the Dangote refinery, a solution largely considered by industry experts as a cosmetic temporary fix, Dr. Enang harped on the need to overhaul the nation’s regulatory framework to reduce undue influence from the regulators, and ensure improved transparency and accountability.
The globally respected oil and gas consultant who consults for numerous local and international energy companies further reiterated that Nigeria stands at a critical juncture, since the Dangote Refinery controversy is an evocative indication of a larger systemic issue that requires urgent attention.
He therefore suggested the strengthening of regulatory infrastructure by investing in state-of-the-art laboratories and training for regulatory bodies, as this is essential to ensure they can independently verify compliance with safety standards.
Additionally, the indefatigable go-getter made a case for the implementation of measures to guarantee that regulatory decisions are based on scientific evidence, and free from political or corporate interference, describing this as crucial for transparency and accountability.
The economic egghead also stressed on the need for improved market competition which could be achieved by promoting increased private sector participation in the nation’s downstream sector.
In his concluding remarks, the Ethical and Attitudinal Reorientation Czar advocated for a collaborative approach between the government and private investors, saying that this was necessary to address market needs and ensure regulatory compliance without resorting to avoidable and ignoble public disputes.
