Reps demand NMDPRA CEO’s suspension over Dangote Refinery comment

The House of Representatives has called on President Ahmed Tinubu to suspend the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Authority (NMDPRA), Farouk Ahmed over his unguarded utterances on high sulphur content in the diesel being produced at Dangote Refinery pending conclusive investigations into the allegations by the House. The lower chamber […]

The House of Representatives has called on President Ahmed Tinubu to suspend the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Authority (NMDPRA), Farouk Ahmed over his unguarded utterances on high sulphur content in the diesel being produced at Dangote Refinery pending conclusive investigations into the allegations by the House.

The lower chamber of the National Assembly made the call after adopting a motion of urgent public importance moved by Rep. Esosa Iyawe at the plenary on Tuesday.

Presenting the motion, he recalled that the head of the NMDPRA recently said the diesel produced by the Dangote Refinery was inferior to the ones imported into the country and that their fuel had a large content of sulphur, which he put at between 650 to 1,200ppm.

He said, “In their defence, Dangote called for a test of their products, which was supervised by members of the House of Representatives, wherein it was revealed that Dangote’s diesel had a sulphur content of 87.6 ppm (parts per million), whereas the other two samples diesel imported showed sulphur levels exceeding 1800 pm and 2000 pm respectively, thus disproving the allegations made by the NMDPRA boss

“Allegations have been made that the NMDPRA was giving licences to some traders who regularly import high-sulphur content diesel into Nigeria, and the use of such products poses grave health risks and huge financial losses for Nigerians.

“The unguarded statements by the Chief Executive Officer of the MDPRA, which has since been disproved, sparked an outrage from Nigerians who tagged his action as undermining of local refineries and insistence on the continued importation of fuel an act of economic sabotage, as the imported products have been shown to contain high levels of dangerous compounds.

“The careless statement by the Chief Executive of the NMDPRA without conducting any prior investigation is not only unprofessional, but also unpatriotic, especially in the face of the recent calls for protest against the federal government.”

Rep. Iyawe said fuel quality could impact engine hardware as ultra-low sulfur diesel was recommended for all types of companies, power plants, storage tanks, industrial facilities, ships, fleets and heavy equipment, adding that high sulphur content in fuels causes damage to engines and contributes to air pollution.

“Considering the various risks associated with sulphur, governments around the world have taken steps to regulate it by setting standards that require maximum reduction of emissions of this chemical compound, which diesel producers are expected to adhere to.

“Sulphur dioxide has dire environmental and health consequences, as it can damage the human respiratory system, compromise lung function and even cause cancer.

“The Nigerian Midstream and Downstream Petroleum Authority permits local refiners to produce diesel with sulphur content of up to 650 parts per million (ppm) until January 2025, as approved by the ECOWAS,” the lawmaker added.

Recall that the House Joint Committee on Petroleum Resources had on Monday launched an investigation into the matter.

It promised to invite Dangote Refinery, other refiners and stakeholders in the petroleum industry to deliberate and take the necessary action.

It’s self-defeating disparaging Dangote – AfDB president

The President of the African Development Bank Group (AfDB), Akinwumi Adesina, says the Nigerian government will be the loser in the wake of criticism targeted at Alhaji Aliko Dangote and his refinery.

He noted that such criticism would discourage foreign investors from coming to the country.

There has been a disagreement between Dangote and Nigerian National Petroleum Company Limited (NNPCL) as well as Nigerian petroleum regulatory authorities over the alleged substandard quality of diesel produced by Dangote Refinery, among other issues.

Adesina, who dismissed claims of Dangote’s monopoly of the country’s manufacturing sector, expressed shock at the controversy, saying it was creating bad waves for Nigeria globally.

Adesina’s remarks are contained in a statement shared on X by business mogul Femi Otedola on Tuesday.

The statement read in part, “Monopoly often exists where there are high barriers to entry or high capital costs. How many individuals or companies can do railways? How many can do refineries of the scale of Dangote Refineries? In a nation that has been importing refined petroleum products for several decades, the abnormal simply became very normal.

“No smart investor would make a $19.5 billion investment and want it to be undermined by importers. To manufacture is extremely expensive and risky. This is even more so in Nigeria, given the very challenging business and economic environment, fraught with policy uncertainties and policy reversals, and where the self-defeating default mode of ‘simply import it’ is always so easily rationalised and chorused to solve any problem.

“…This whole disparaging of Dangote is uncalled for. It is self-defeating. And it is very bad for Nigeria. Who will want to come and invest in a country that disparages and undermines its own largest investor? Investing is tough. Pettiness is easy. It sadly sends a signal that the price for sacrificing for Nigeria is to get sacrificed.”

No investor will trust a nation that undermines its key assets – Atiku

Similarly, former Vice-President Atiku Abubakar, who also waded into the controversy between Dangote Refinery and the NMDPRA yesterday, said no investor will trust a nation that undermines its key assets.

The opposition leader in a post on his verified Facebook account posted that the 650,000 bpd refinery is essential for our energy needs and economic stability, saying it is essential to drive the nation’s economy.

He said the ongoing impasse is capable of affecting foreign direct investment to the country.

It would be recalled that Aliko Dangote had earlier disclosed how a cabal was blocking his moves to import crude and how it has been difficult to get products.

But the situation took a worse turn when the NMDPRA said the government was yet to license the Dangote refinery to begin operations, even casting aspersions at the quality of the product.

At an interactive session with House of Representatives members led by the speaker at the weekend, Dangote countered the claim, saying the diesel from his refinery is of a very high standard.

Commenting on the rift, Atiku said, “The conflict between Aliko Dangote and NMDPRA is troubling. The Dangote refinery, our nation’s largest private investment, is crucial for Nigeria’s energy and economic stability.

“The 650,000 bpd refinery is essential for our energy needs and economic stability, and NNPCL’s investment underscores its importance. If we neglect this, we risk deterring vital foreign direct investment.

“No investor will trust a nation that undermines its key assets. Protecting significant investments like Dangote’s is essential to attract FDI and drive our economic growth.”

Dangote should be supported, not vilified -Obi

The presidential candidate of the Labour Party (LP) in the 2023 election, Peter Obi has called for caution in handling Dangote, and NNPCL conflicts, saying the Dangote refinery is too vital to fail and should be fully supported to operate.

Making the call on Tuesday on his X handle, Obi said the conflict is troubling because it is about Nigeria’s economy and the well-being of its citizens.

“The recent conflicts between Dangote Industries and some government agencies are deeply troubling. This issue transcends political affiliations and personal grievances.

“It is fundamentally about Nigeria’s economy, future, and the wellbeing of its citizens. Given Alhaji Dangote’s significant contributions to Nigeria, these disputes must be resolved swiftly.

“Government agencies should be directed to offer the necessary support for the seamless launch and operation of the Dangote refinery and its associated enterprises.

“The refinery has the potential to generate approximately $21bn in annual revenue and create over 100,000 jobs, with numerous additional positive impacts on the economy.

“Its strategic importance in addressing Nigeria’s fuel crisis, boosting foreign exchange earnings, and fostering economic growth cannot be overstated.

“The refinery is too vital to fail and must not be hindered, considering its crucial role in our national welfare,” Obi said.

He said that the federal government and its agencies need to recognise the significance of Dangote’s contributions, as Dangote is not just a businessman but also a national and African brand symbolising patriotism, commitment, and impactful entrepreneurship.

“In the interest of Nigeria and its citizens, as well as Africans at large, I urge the federal government and its agencies to provide Dangote Industries, especially the refinery, with all necessary support,” Obi said.

I don’t own any petroleum blending plant in Malta, Kyari replies Dangote

Meanwhile, Group Chief Executive Officer (GCEO), Nigerian National Petroleum Company Limited, Mele Kyari, says he doesn’t own or operate any petroleum blending plant in Malta.

Kyari was responding to claims that officials of the NNPCL operate an oil facility in Malta, an island country located in the central Mediterranean Sea.

Speaking at the House of Representatives on Monday, Dangote reportedly said some personnel of NNPCL, oil traders and terminals have opened a blending plant in Malta.

The billionaire said the areas of the blending plants are known.

“Some of the terminals, some of the NNPCL people and some traders have opened a blending plant somewhere off Malta. We all know these areas. We know what they are doing,” the billionaire reportedly said.

Reacting to the allegation, Kyari, in a post via X, on Tuesday, also said he was not aware of any employee of the NNPCL that owns or operates a blending plant in Malta or anywhere else in the world.

He, however, said blending plants in Malta or any part of the world has no influence over NNPC’s business operations and strategic actions.

He said: “I am inundated by enquiries from family members, friends and associates on the public declaration by the President of Dangote Group that some NNPC workers have established a blending plant in Malta, thereby impeding procurements from local production of petroleum products.

“To clarify the allegations regarding the blending plant, I do not own or operate any business directly or by proxy anywhere in the world, with the exception of a local mini-agricultural venture. Neither am I aware of any employee of the NNPC that owns or operates a blending plant in Malta or anywhere else in the world.

“A blending plant in Malta or any part of the world has no influence over NNPC’s business operations and strategic actions.

“For further assurance, our compliance sanction grid shall apply to any NNPC employee who is established to be involved in doing so if availed and I strongly recommend that such individuals be declared public and be made known to relevant government security agencies for necessary actions in view of the grave implications for national energy security.”