Minister Lokpobiri Intervenes in Dangote Refinery Dispute with Oil and Gas Regulatory Agencies
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has stepped in to mediate the ongoing conflict between the President of the Dangote Group, Aliko Dangote, and the supervising agencies in the oil and gas industry concerning the Dangote Refinery.
On Monday in Abuja, Lokpobiri convened a meeting with Dangote and the heads of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Company Limited (NNPCL).
This intervention follows a series of accusations and counteraccusations between Dangote and the agencies. Dangote alleged that International Oil Companies (IOCs) in Nigeria were sabotaging the Dangote Oil Refinery and Petrochemicals by inflating premium prices on local crude, forcing the refinery to import crude from distant countries like the United States at significantly higher costs.
Conversely, the NMDPRA accused the Dangote Refinery of producing inferior products compared to imported ones. Farouk Ahmed, head of the NMDPRA, claimed that the diesel produced by Dangote was of lower quality, with a 665 ppm rating, which he considered substandard.
Public criticism of the dispute has been widespread, with many Nigerians urging the federal government to intervene in the nation’s interest.
In a statement on Monday night, Nneamaka Okafor, Special Adviser on Media and Communication to Lokpobiri, expressed gratitude for the minister’s leadership and timely intervention.
“The stakeholders expressed their gratitude to the minister for his exemplary leadership and timely intervention in facilitating this crucial dialogue,” Okafor said.
He added that the meeting aimed to find a sustainable solution to the impasse affecting the Dangote Refinery, with all parties showing a commitment to collaborative problem-solving.
The minister emphasized the importance of cooperation and synergy among all stakeholders to ensure the success and optimal performance of the oil and gas sector, which is crucial for Nigeria’s economic growth and energy security.
“The meeting marked a significant step towards resolving the challenges,” Okafor stated.
House of Representatives to Investigate Allegations of Low-Grade Products
Meanwhile, the House of Representatives’ Joint Committee on Midstream and Downstream has launched a thorough investigation into allegations of substandard domestic petroleum products and other related issues.
The committee has invited all stakeholders to get to the root of the saga.
Chairman of the committee, Ikenga Imo Ugochinyere, emphasized the need for a legislative forensic investigation into the challenges affecting Nigeria’s downstream and midstream petroleum sectors.
“We are going to take a closer look at the integrity of the testing processes for petroleum products in the country, particularly focusing on the capacity and credibility of all the testing labs of all stakeholders in the downstream midstream value chain,” Ugochinyere said.
The committee is also mandated to investigate several issues, including the indiscriminate issuance of licenses, importation of refined petroleum products, product unavailability to marketers, delays in refinery rehabilitation, and the activities at petrol depots.
Further, the investigation will cover the presence of middlemen in crude trading, the importation of products already produced in Nigeria, and the use of international trading companies to resell fuel stock to local refineries at high markup prices.
Stakeholders invited to the investigation include petroleum product refining companies, IPMAN, PETROAN, independent oil producers, international oil companies, importers, marketers, and depot owners.
