“The lawmakers’ visit and tour of Dangote refinery led by the Speaker, House of Representatives, have raised many questions about the independence of the legislators in the substandard diesel rift between Dangote and NMDPRA.”
The Speaker of the House of Representatives, Tajudeen Abbas, on Saturday, led a delegation of the legislative body on a familiarization visit to the Dangote refinery and Petrochemicals Company, Lagos.
The familiarization visit, which was on the invitation of the Dangote Group, was initially planned to jointly take place with the leadership of the Senate on June 3, 2024.
However, the leadership of the National Assembly had to put the visit on hold to meet with the leadership of organized labour over agitation for a new minimum wage at the time.
Protest: What Tinubu, IGP Should Do If All Entreaties Fail – Anya-Ndi-Igbo
The Senate leadership had to visit the facility separately.
Details of the visit
In a statement issued on Saturday by the Special Adviser, Media and Publicity to the Speaker, Musa Krishi, quoted Abbas as describing the visit as one of the continuous efforts to understand and support key industries within the nation’s economy.
“The purpose of this visit is to provide the House Leadership and the relevant oil and gas committees with an in-depth understanding of the nature, scope, and activities of the Dangote Refinery. This initiative aligns with our legislative agenda, which aims to support the President’s Renewed Hope agenda, focusing on economic transformation, growth, and development.
‘Disheartening,’ Dangote Claps Back At NMDPRA Boss, Says Refinery’s Diesel Meets Standard
“This familiarisation tour underscores our commitment to engaging with and supporting critical sectors that drive our economy. Also, this visit provides valuable insights that will inform our legislative measures and decisions.
“We remain dedicated to fostering an environment conducive to economic growth and development, ensuring that our legislative actions align with the broader goals of national progress as articulated by President Bola Tinubu,
According to him, the legislative body will do its part to address the challenges facing the manufacturing sector in Nigeria.
He said, “We are acutely aware of the challenges facing the private sector in Nigeria, including regulatory hurdles, infrastructure deficits, and access to finance.
“The House of Representatives is committed to addressing these issues and improving the ease of doing business in our country.
“We are working diligently to create a more business-friendly environment through legislative reforms that streamline processes, reduce bureaucracy, and enhance transparency. Our goal is to make Nigeria an attractive destination for both local and international investors.
‘20% To 7.2%,’ NNPC Reacts As Dangote Says Firm’s Stake in His Refinery Depleted
“In line with the renewed agenda of President Bola Ahmed Tinubu, the National Assembly is committed to creating an enabling environment for the private sector to thrive.
“We understand that a robust partnership between the government and private enterprises like Dangote Group is essential for sustainable development. To this end, we are dedicated to enacting policies that support business growth, reduce bureaucratic hurdles, and promote transparency and accountability.”
Significance of Lawmakers, industry engagement
Highlighting the importance of engaging with industry leaders to understand their challenges, the Speaker urged the Chairman of Dangote Group, Aliko Dangote, to “Maintain an open line of communication with the National Assembly and the House leadership,” stressing that “Constructive dialogue will ensure that we can address any operational challenges swiftly and foster an environment conducive to optimal economic growth.”
He continued, “Together, we can drive Nigeria forward, harnessing the full potential of our resources and talents.
“Dangote Refinery symbolizes not only the strength and potential of Nigerian industry but also the dedication and vision of one of our most esteemed business leaders, Mr Aliko Dangote.
What Kyari Said On Dangote’s Allegation NNPC Staff Own Blending Plant In Malta
“As we tour this state-of-the-art facility, it is impossible not to appreciate the significant contributions that Dangote Group is making to our economy.
“From job creation to the reduction of our import dependence, the refinery stands as a testament to the transformative impact that strategic investments can have on our nation. It provides thousands of jobs, promotes local content, and drives technological advancements within our borders. Such efforts are crucial in our collective pursuit of economic stability and growth.
“By investing in infrastructure, technology, and human capital, the private sector propels nations toward sustainable development and economic resilience. It is through a vibrant private sector that economies can diversify, innovate, and compete on a global scale.”
That said, the Speaker called on Mr Dangote to continue to explore avenues to complement government initiatives adding that “By investing in renewable energy, enhancing corporate social responsibility programs, and fostering innovation through research and development, Dangote can further solidify its role as a key player in our economic landscape.”
What Dangote Said to Visiting Lawmakers
Africa’s richest man, Aliko Dangote, took advantage of the visit to declare that the Nigerian National Petroleum Company (NNPC) Limited no longer owns 20 per cent stake in Dangote Petroleum Refinery.
Speaking during a press briefing at the refinery on Sunday, Dangote said NNPC now owns 7.2 per cent of the refinery over failure to pay the balance of their share, which was due in June.
Dangote: End of the Road for a Monopolist?, By Soji Adekunmbi
“NNPC no longer owns 20 per cent stake in the Dangote refinery. They were met to pay their balance in June but have yet to fulfil the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote said.
In September 2021, NNPC acquired a 20 per cent interest in Dangote refinery for $2.76 billion.
Revealing details of the transaction, NNPC, in its audited financial statements for 2022, said NNPC Greenfield holds the investment.
NNPC said the balance ($1.76 billion) of the cost of equity investments made in Dangote refinery would be paid upon completion of the refinery project or any other date agreed.
Reactions
Reacting to the statement by Dangote, the NNPCL, in a press release on Sunday evening, said the company “made a commercial decision to cap our investment at the amount already paid.”
A statement by Olufemi Soneye, spokesman for the oil giant read; “On Dangote’s Claim of NNPC Ltd’s Stake in his Refinery. Several months ago, we made a commercial decision to cap our investment at the amount already paid. This decision was taken by NNPC Ltd and has no impact on our business.”
A clap back at NMDPRA
President of Dangote Group, Aliko Dangote, also used the visit by the lawmakers to clap back at Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Authority (NMDPRA), who recently asserted that imported diesel surpassed product refined domestically by Dangote Refinery in teems of standard.
Ahmed had earlier alleged that Dangote refinery produced diesel with sulphur content ranging from 650 to 1200 ppm—a. He was reacting to an earlier statement from Dangote blaming NMDPRA for allegedly enabling importation of substandard diesel through licenses it gives to importers.
Describing the statement from the regulator as disheartening, Aliko Dangote who spoke during a tour of both Dangote Petroleum Refinery and the Dangote Fertiliser Limited complex by members of the House of Representatives, challeged the downstream regulator to “showcase its laboratory (where test on diesel is conducted) to the world so Nigerians can compare.”
He asserted that products refined at the Dangote Petroleum Refinery & Petrochemicals, the world’s largest single train refinery, are of superior quality compared to imported equivalents and meet international standards. He expressed his confidence after the House leadership insisted on testing other diesel products, alongside Dangote’s diesel, at its state-of-the-art laboratory.
Lawmakers As Observers In Dangote Lab
Speaker of the House of Representatives, Rt Hon. Tajudeen Abbas and other members who, according to a statement, observed the testing of Automotive Gas Oil (diesel) from two petrol stations alongside Dangote Petroleum Refinery, praised the company for its significant investments and contributions to Nigeria’s development.
“The diesel samples were procured from two well-known filling stations near Eleko junction along the Lekki Epe Expressway by the honourable members. Chairman of the House Committee on Downstream, Hon. Ikeagwunon Ugochinyere, and Chairman of the House Committee on Midstream, Hon. Okojie Odianosen oversaw the collection of samples from the Mild Hydro Cracking (MHC) unit of Dangote refinery for testing of all the samples,” the statement made available to Platforms Africa read.
Other details
Lab tests, the statement from Tony Chiejina, head corporate communication, Dangote Group, reads, “revealed that Dangote’s diesel had a sulphur content of 87.6 ppm (parts per million), whereas the other two samples showed sulphur levels exceeding 1800 ppm and 2000 ppm respectively.
“Dangote emphasised that these findings debunked claims made by Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Authority, who recently asserted that imported diesel surpasses domestically refined products. Ahmed had alleged that Dangote refinery and other modular refineries like Waltersmith and Aradel produced diesel with sulphur content ranging from 650 to 1200 ppm—a statement criticised by many Nigerians as a tactic to favour imported products over local ones.”
Dangote openly challenged the regulator to compare the quality of refined products from his refinery with those imported, advocating for an impartial assessment to determine what best serves the interests of Nigerians.
“We produce the best diesel in Nigeria. It’s disheartening that instead of safeguarding the market, the regulator is undermining it. Our doors are open for the regulator to conduct tests on our products anytime; transparency is paramount to us. It would be beneficial for the regulator to showcase its laboratory to the world so Nigerians can compare. Our interest is Nigeria first because if Nigeria doesn’t grow, we have limited capacity for growth.
“Right Honourable Speaker and esteemed members, you’ve witnessed the results of the credibility test. I appreciate your wise counsel in procuring samples from the filling stations alongside our refinery’s product. Ours shows a sulphur content of 87.6 ppm, approximately 88, whereas the others exceeded 1,800 ppm. Although the NMDPRA permits local refiners to produce diesel with sulphur content up to 650 ppm until January 2025, as approved by ECOWAS, ours is significantly lower. Next week, we aim to achieve 10 ppm, aligning with the Euro V standard. Imported diesel is capped at 50 ppm, but as you’ve seen, those from the stations, imported by major marketers, fall well outside this standard.”
Conclusion
The visit and tour of Dangote refinery led by the Speaker, House of Representatives, have raised many questions about the independence of the legislators in the rift between Dangote and NMDPRA. This has also been said to have watered down the stance of the lawmakers as unbiased umpire in the tussle in who has substandard diesel. For whoever doubts the burden the action of the legislators did to the collective integrity of the National Assembly, two questions are begging for answers.
Who paid for the lawmakers’ visit to Dangote Refinery is the first question. The second is that would lawmakers from the United States or from any developed economy visit, supervise a fact-finding test inside the laboratory of a party in a bickering about substandard diesel and ultimately form opinions on the one-sided test?
Your guess is as good as mine!
Francis Aderibigbe writes in from Abuja.
EDITOR’S NOTE: All opinions expressed in this article are solely that of the writer. They, in no way, represent the editorial position of Platforms Africa