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By Adewale Sanyaolu
A senior executive at Dangote Industries Limited (DIL) has raised concerns over the actions of International Oil Companies (IOCs) in Nigeria, accusing them of undermining the operations of the Dangote Oil Refinery and Petrochemicals Limited.
During a one-day training session for energy editors organized by the Dangote Group in Lagos, Mr. Devakumar Edwin, Vice President of Oil and Gas at DIL, stated that IOCs are intentionally obstructing the refinery’s efforts to procure local crude oil. By inflating premium prices beyond market rates, these companies are forcing Dangote to import crude from distant countries like the United States, leading to increased operational costs.
The company also criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for indiscriminately issuing licenses to marketers to import substandard refined products. This practice has compelled the Dangote refinery to look abroad, recently exporting diesel and aviation fuel to Europe and other markets.
“The same industry players fought us for reducing the prices of diesel and aviation fuel,” Edwin remarked, “but our goal is to grow our economy.” He emphasized that the refinery adheres to international standards and strict environmental regulations, enabling it to export products globally.
Edwin noted that although the Federal Government issued 25 licenses to build refineries, Dangote was the only one to fulfill this promise. Since production commenced, over 3.5 billion liters, representing 90% of the refinery’s output, have been exported. He urged the government and regulators to support the refinery to foster job creation and national prosperity.
Despite efforts by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to allocate local crude to the refinery, Edwin accused IOCs of deliberately demanding exorbitant premiums or claiming crude was unavailable. This has forced the refinery to cut output and import crude at higher costs.
He argued that the IOCs aim to keep Nigeria as a crude exporter and refined product importer, enriching their home countries while leaving Nigeria dependent on expensive imports. This exploitation strategy perpetuates unemployment and poverty in Nigeria and Sub-Saharan Africa while benefiting multinational corporations.
Despite the Dangote refinery producing diesel that complies with ECOWAS standards, licenses continue to be issued for the importation of high-sulfur diesel from Russia, which is then dumped into the Nigerian market. European countries, alarmed by the carcinogenic effects of this fuel, have recently banned its export to West Africa.
In May, Belgium and the Netherlands adopted new standards to prevent the export of low-quality fuels to West Africa, aligning with European Union regulations. These measures target diesel and petrol with high sulfur and chemical content, historically exported at reduced rates to Nigeria and other West African countries. Belgium’s Environment Minister, Zakia Khattabi, emphasized the harmful impact of these fuels on air quality and health in African nations.
An investigation by Public Eye in 2017 revealed that polluted fuels were being exported from European ports to Africa, containing sulfur and other pollutants at levels far exceeding European limits. Consequently, regulations were enforced to protect Africans from exposure to these toxic fuels.
Edwin appealed to the Federal Government and the National Assembly for urgent intervention to implement the Petroleum Industry Act (PIA) and safeguard Nigeria’s interests. He highlighted that Ghana has recently banned the importation of contaminated diesel and petrol, urging Nigeria to follow suit and leverage its refining capacity to meet local demand and export surplus.
Since January 2021, ECOWAS regulations have prohibited the import of highly contaminated diesel into the region. Edwin urged Nigeria to adhere to these regulations and prioritize local production to protect public health and strengthen the economy.
