Monopoly, low quality fuel allegations: Dangote kicks as Reps call for probe

Aliko Dangote, owner of the Dangote Refinery and Petrochemical Plant has debunked claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on the quality of petroleum products from the refinery and allegation of attempted monopoly of the industry.
He spoke during a tour of both Dangote Petroleum Refinery and the Dangote Fertiliser Limited complex located at the Lekki Free Trade Zone in Lagos by members of the House of Representatives.
Dangote insisted on the quality of products from the refinery.
This is even as the leadership of the House of Reps called for an investigation into the allegations by NMDPRA.
Reps Speaker Tajudeen Abbas and his deputy Benjamin Kalu led the delegation from the House which included Hon Ikenga Ugochinyere.
Trouble started when the Chief Executive Officer of NMDPRA Farouk Ahmed in a recent interview with journalists, a video of which is currently circulating on X noted that Dangote was trying to entrench monopoly in the oil and gas sector, that the products are inferior and that the 650,000-bpd refinery is still in the pre-commissioning stage and about 45 per cent completed.
Ahmed added that the country cannot risk dependence on Dangote Refinery alone by suspending petroleum products, especially Automotive Gas Oil and Dual-Purpose Kerosene, DPK.
He said: “That is not so. Dangote Refinery is still in the pre-commissioning stage. It has not been licensed yet. We haven’t licensed them yet. I think they are about 45 per cent to completion.
“We cannot rely on one refinery to feed the nation, because Dangote is requesting that we suspend or stop imports, especially of AGO and DPK, and direct all marketers to his refinery. That is not good for the nation in terms of energy security, and it is not good for the market because of the monopoly.”
Ahmed said that in terms of quality, Dangote’s current AGO (diesel) suffers from the lowest quality in terms of sulphur content, falling short of West Africa’s requirement of 50 parts per million (PPM).
“Dangote Refinery, as well as some modular refineries like Watersmith Refinery and Aradel Refinery, are producing between 650 and 1,200 PPM. Therefore, in terms of quality, their products are much, much, more inferior to imported ones,” he stated.
Reacting, Dangote said his team tested diesel bought from two filling stations and that from his refinery at the refinery’s laboratories.
The tested diesel from other stations was bought in the presence of the lawmakers, while that from the Dangote Refinery was taken from production also in the presence of the lawmakers.
Two tests were reportedly conducted; a test of the sulphur level and a flash test. While all crude-based products contain some level of sulphur, high sulphur levels cause damage to engines and vehicle components.
The flash point refers to the lowest temperature at which the application of the ignition source causes the vapours above the liquid to ignite with the minimum expected flash point at 66.
The results showed that the sulphur content in the diesel from other stations was above 2,631 and 1,829; much higher than the recommended level while the tests for the flash point showed results of 26 and 63 respectively for the diesel from other stations. Both results fell short of the recommended minimum of 66.
The results for the diesel from Dangote turned out to be 87.6 ppm for sulphur and 96 flashpoints.
He called on the House of Representatives to investigate the quality of diesel and petrol at filling stations.
To carry out the investigation, he urged the House to set up a committee to test products at various filling stations across the country.
READ ALSO:Against criticisms, Nigerian govt makes case for imported fuel, carpets Dangote refinery, others (Video)
Decrying the damage being done to vehicles and engines by substandard products, he also called on the House to investigate the quality of laboratories being used to test imported products and compare that with the one at the Dangote Refinery.
“Our quality is about 600 to 650 ppm and is one of the best in terms of quality at that time when we started. But as at today, we’re at 87 ppm,” he said
“I want to plead with the regulator to come at any time, whether Sunday or Monday, or take the sample and I guarantee you before he gets here, our PPM will be even below 10.
“When we’re coming here, his excellency, the speaker said, can we please wait to pick up samples from two filling stations? And also when we get into our plant, they will pick a sample to check the results.
“The results are actually out and I’m going to share the same results with you.
“The sample from TotalEnergies’s diesel showed 1,829ppm sulphur concentration. The sample from Matrix Retail showed 2,653ppm. Matrix was 61 below 66 and Total is 26 flash point
“Our flash point showed 96. If you want to do the rest, we can run it at any given time.
“Today I want to announce to Nigerians that our parameters today are extremely, very good parameters.
“By the end of next week, we should be on 50ppm and by August, it should be down to 10ppm.”
Dangote also said the claim in some quarters that his group of companies enjoy monopoly is not true.
“If you look at all our operations at Dangote (Group), we add value; we take local raw materials and turn them into products, and we sell.
“We have never consciously or unconsciously stopped anybody from doing the same business that we are doing.
“When we first came into cement production, it was only Lafarge that was operating here in Nigeria…Nobody ever called Lafarge a monopoly,” he said, adding that labelling his group of companies as monopolistic is disheartening.
“Monopoly is when you stop people, you block them through legal means. No, it is a level playing field whereby whatever Dangote was given in cement, for example, other people were given because some of them even got more than us.”
The billionaire business tycoon said his refinery did not enjoy any incentive from the Federal Government.
“In the refinery, we did not, and I repeat, we did not collect one single incentive from the Federal Government of Nigeria or even Lagos State. Yes, the Lagos State gave us a good deal but we paid $100m for the land. It wasn’t a free land; we paid for it,” he said.
“Majority of the population are with us. So, we are not discouraged, we will continue what we are doing.”
Addressing the speaker, he said, “The most important thing, your excellency, is to note that the imported one they are encouraging, is the spec in test, but in certain cases when you check (independently), different results will show.”
This, he said, is “because those people who have the lab have been told what to write.”
He said the best way to determine the quality of products being imported and sold to Nigerians is by going to the filling stations, buying and testing them.
In his response, the Speaker disclosed that going by the presentation and the contradictory claims, there was a need for an investigation.
“I don’t know how we have this contradiction of two players representing the public and private sector,” he said.
“I think it is something we need to investigate further to find out if there are ulterior motives.”
By: Babajide Okeowo
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