Dangote Raises Alarm Over Substandard Fuel Imports Amid Refinery Operations

Aliko Dangote, the president of the Dangote Group and one of Africa’s wealthiest individuals, has issued a strong warning regarding the influx of inferior petroleum products into Nigeria, claiming that these substandard fuels are being marketed to unsuspecting consumers.

This assertion was made during a recent visit by the leadership of Nigeria’s House of Representatives, including Speaker Tajudeen Abbas and Deputy Speaker Benjamin Kalu, to the Dangote Refinery located in Lagos State.

During the visit, Dangote insisted that there is an urgent need for an investigation to uncover potential sabotage within the oil industry or any ulterior motives aimed at undermining his business operations. He emphasized that testing fuel quality is crucial and suggested that representatives could do so by purchasing products directly from filling stations.

“It is vital to recognize, Your Excellency,” Dangote stated, “that the imported fuel, which is being promoted, often exhibits discrepancies; independent tests frequently yield different results.”

In response to allegations made by Farouk Ahmed, the CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which questioned the quality of the diesel produced at his refinery, Dangote expressed confidence in his products, asserting that they not only meet but exceed quality standards compared to imported alternatives.

Supporting his claims with evidence, Dangote highlighted results from tests conducted on diesel purchased from local filling stations as well as from his refinery, with comparisons made using the ASTM D4294 testing method.

The results indicated that the diesel produced at his facility had a sulfur content that improved from an initial range of 600 to 650 parts per million (ppm) when operations began, down to only 87 ppm at present. Remarkably, he projects this sulfur level to decrease to an even lower 50 ppm by the following week.

“This not only validates the quality of our products but also demonstrates the prevalence of poor quality petroleum products that are being imported into Nigeria,» he remarked, further detailing that diesel samples taken from the two independent filling stations showed staggering sulfur levels of over 1,800 ppm and 2,600 ppm.

Dangote elaborated, “Our product quality was initially rated between 600 and 650 ppm, a competitive figure at our launch, but today we have successfully refined it down to 87 ppm. I assure you that by the end of this week, it will drop even further.”

Furthermore, he called on the House of Representatives to conduct a thorough examination of the laboratories employed by the NMDPR to evaluate imported fuels, recommending a comparison with the facilities used at his refinery.

Willing to engage in independent testing, Dangote asserted that this would demonstrate not only the quality of his products but also reveal significant issues concerning the products from other companies in the sector.

Addressing concerns regarding monopolistic practices, Dangote refuted claims suggesting that the Dangote Group had received preferential treatment during the establishment of the refinery. “All operations within Dangote Group are designed to add value; we take local materials and convert them into usable products and have never impeded others from entering the same sectors,” he asserted.

Reflecting on his entry into the cement market, where previously only Lafarge was operational in Nigeria, he stated, “Nobody referred to Lafarge as a monopoly. A genuine monopoly involves obstructing competitors through legal avenues. Our environment promotes fair competition where other market players received similar benefits.”

He clarified, “In our refinery project, we did not, I emphasize, we did not receive a single incentive from either the Federal Government or Lagos State.” He mentioned that while favorable conditions were granted by Lagos State, they still made a substantial payment of $100 million for the land acquired in the Lagos free trade zone.

Dangote reassured stakeholders about the continued support from the populace and mentioned their efforts to foster growth in the economy rather than stifling competition. “We are not discouraged. We will persist in our operations,” he stated decisively.

<pIn light of the political climate and concerns about accusations of monopolization, Dangote revealed that his company had decided against entering Nigeria's steel industry to avert further allegations. This move was motivated by the understanding that venturing into steel would necessitate the importation of raw materials, conflicting with the company's primary objective.

He remarked, “The decision to withdraw from our steel project is in response to anticipated accusations of monopolistic behavior. Additionally, importing raw materials for this venture contradicts our vision.”

However, he encouraged other Nigerian entrepreneurs to explore investments within the steel sector to contribute positively to the nation’s economy. “I invite other Nigerians to pursue these opportunities,” he urged, stating, “We aren’t the only investors. There are others with the financial means to invest in our country.”

During the visit, Speaker Abbas noted the inconsistencies highlighted during the briefings, acknowledging the necessity for a deeper investigation into the contrasting claims from public and private sectors. “We must explore this discrepancy further as it raises questions regarding potential ulterior motives,” he indicated.