Africa's wealthiest man, Aliko Dangote, has expressed his willingness to sell his multibillion-dollar oil refinery to the state-owned NNPC Limited amid ongoing allegations of monopolistic practices. In an exclusive interview, Dangote stated, “Let them (NNPCL) buy me out and run the refinery the best way they can,” highlighting his frustration with regulatory challenges and accusations directed at him.
The $19 billion refinery, which began operations in January, is designed to process 650,000 barrels of oil per day. It aims to reduce Nigeria's dependence on imported fuel, potentially saving the country 30% of its foreign exchange expenditure on fuel imports. However, the refinery has faced significant operational hurdles, including difficulties in sourcing crude oil, with NNPC delivering only 6.9 million barrels since the refinery's inception.
Dangote criticized the allegations of monopolistic behavior as “incorrect and unfair,” suggesting that the discomfort surrounding his involvement in the refinery's operations has led to these claims. He emphasized that he is ready to step aside for the benefit of the country, stating, “At least the country will have high-quality products and create jobs.”
Let them (NNPCL) buy me out and run the refinery the best way they can. They have labelled me a monopolist. That’s an incorrect and unfair allegation, but it’s OK. If they buy me out, at least, their so-called monopolist would be out of the way,” Dangote told PREMIUM TIMES in an exclusive interview.
Despite the refinery's potential, it has been operating at just over half capacity due to supply issues, prompting Dangote to seek crude from international markets, including Brazil and the U.S. He noted that he is approaching retirement age and is more focused on the welfare of Nigeria than on retaining ownership of the refinery.
Dangote highlighted that vested interests are attempting to undermine the refinery's success, stating, “There are vested interests unhappy with the project who are willing to undermine its success.” He emphasized that his commitment has always been to benefit Nigeria, noting the refinery's potential to save the country up to 30% of its foreign exchange spent on fuel imports.
In response to accusations regarding fuel quality, Dangote invited members of the House of Representatives to tour the refinery, where tests showed that the sulphur content in his diesel was significantly lower than that of imported samples. This was part of his effort to counter claims made by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Reflecting on his situation, Dangote acknowledged the challenges he faces at 67 years old, stating, “I need very little to live the rest of my life. I can’t take the refinery or any other property or asset to my grave.” He also mentioned plans to halt investments in Nigeria's steel industry to avoid further accusations of monopolistic behavior.
As the situation develops, Dangote remains hopeful that the refinery can contribute significantly to resolving Nigeria's longstanding fuel crisis, provided that operational challenges can be addressed effectively. As Nigeria continues to grapple with its fuel crisis, the potential sale of Dangote's refinery to NNPC could reshape the country's energy landscape and influence future investment decisions.