Aliko Dangote, the President of Dangote Industries, addressed critics' claims that the diesel quality produced by Dangote Refinery, in terms of sulphur content, is the lowest in West Africa. During a visit by a delegation from the House of Representatives to the refinery in Lagos, Dangote emphasized that even at 650-750 PPM, the diesel quality from his refinery was superior to imported fuel. He attributed vehicle problems to bad imported fuel and challenged critics to verify the quality by checking samples from filling stations.
This assertion counters a statement from Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), who claimed that the sulphur content of Dangote Refinery's diesel ranged between 650 ppm and 1,200 ppm, making it inferior to imported diesel. Ahmed also addressed allegations that international oil companies were not supplying crude oil to the Dangote refinery, clarifying that the refinery is still in the pre-commissioning stage and has not been licensed yet.
Responding to these issues, Dangote revealed that initial diesel production started with 600-700 PPM but has now improved to 87 PPM, with a target of 10 PPM by the end of August. He invited the House delegation to set up a committee to verify the quality of the diesel produced.
Addressing monopoly concerns, Dangote pointed out that the Nigerian National Petroleum Corporation (NNPC) spent 4 billion Naira on reviving refineries in Kaduna, Warri, and Port Harcourt. He argued that if these refineries are operational, Dangote Refinery cannot be considered a monopoly. He criticized the regulators for using monopoly concerns as an excuse to issue licenses for inferior products.
On pricing, Dangote explained that diesel prices were adjusted to 1,200 Naira due to high profit margins. He defended this pricing, citing the current exchange rate and NNPC's policy of selling in dollars. He assured that Dangote Refinery sells in Naira to help lower prices and emphasized their commitment to Nigeria's growth.
Regarding NNPC's stake in the refinery, Dangote revealed that a $1 billion deposit (about 7.2%) was agreed upon, but the additional year granted for payment expired on June 30. Despite NNPC's intention to remain at 7%, no written confirmation has been received.
Dangote highlighted the extensive challenges faced over the past seven years, including significant financial losses due to project delays, stringent financing requirements, and the depreciation of the Naira. He detailed the impact of these delays, including a three-and-a-half-year setback by Ogun State's Governor Amosun, leading to over $600 million in losses.
Despite these hurdles, Dangote remained committed to the project, securing a license with the support of President Jonathan. He clarified that the funding from the Central Bank was $2.7 billion over 13 years, and Dangote Industries reinvests its dividends back into Nigeria, countering the notion that their projects deplete national resources.
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