Dangote puts up his refinery for sale amid monopoly allegations
Nigerian billionaire Aliko Dangote has expressed his willingness to sell his world’s largest single-train refinery to the Nigerian National Petroleum Company Limited (NNPC).
This announcement comes amid ongoing disputes over the Sulphur content of petroleum products produced at the refinery and a reported misunderstanding between the Dangote Group, NNPC, and the Nigeria Midstream Downstream Regulatory Authority (NMDPRA).
The Dangote Refinery, commissioned by former President Muhammadu Buhari, represents a $20 billion investment aimed at ending Nigeria’s reliance on petrol imports and saving approximately 30% of the foreign exchange spent on such imports.
Despite these ambitious goals, the refinery has faced significant challenges since it began operations in January 2024.
Dangote, Africa’s richest man, has invited NNPC to acquire his stake in the refinery, stating that he has been unfairly labeled a monopolist.
“Nigeria has faced a fuel crisis since the 1970s,” Dangote said. “My refinery is poised to resolve this issue, but it seems some people are uncomfortable with that.”
The billionaire’s statement comes as a blow to Nigeria’s energy sector, which had high hopes for the refinery’s potential to stabilize fuel supply and reduce import costs.
Despite these hopes, the refinery has encountered obstacles, including disputes over crude oil supplies and accusations of monopolistic practices.
Dangote has lamented the difficulties in sourcing crude oil, noting that international oil companies (IOCs) are demanding exorbitant premiums and sometimes claim the product is unavailable.
Reports indicate that NNPC had delivered only 6.9 million barrels of crude oil to the refinery as of May 2023.
This shortfall has forced Dangote to consider importing crude oil from other African countries to meet the refinery’s needs.
The relationship between Dangote and NNPC has been further complicated by financial issues. The NNPC, which holds a 20% equity stake in the refinery, has only paid 7.2% of its commitment by the deadline set by the Dangote Group.