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Abuja, Nigeria – In a significant development, the Federal Government of Nigeria has stepped in to mediate the escalating dispute between Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regarding the quality of diesel distributed within the country.
The intervention came after a high-level meeting was convened by the Minister of State Petroleum Resources (Oil) on Monday night. The meeting included key stakeholders such as Mr. Aliko Dangote, Chairman/CEO of Dangote Group, Mr. Farouk Ahmed, Authority Chief Executive of NMDPRA, Mr. Gbenga Komolafe, Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Mr. Mele Kyari, Group Chief Executive Officer of Nigerian National Petroleum Corporation Limited (NNPC).
The conflict began when the NMDPRA accused Dangote Refinery of producing inferior diesel compared to imported products. This claim, made by Farouk Ahmed, has been a point of contention, leading to significant backlash and calls for investigation.
In response, Aliko Dangote denied these allegations and demonstrated the quality of his refinery’s diesel during a visit by federal lawmakers. Dangote also called for a formal investigation into the NMDPRA’s claims, further escalating the situation.
The Minister’s media aide, Nneamaka Okafor, released a statement highlighting the government’s efforts to foster a collaborative environment in the oil and gas sector. The meeting, described as a “significant step towards resolving the challenges,” focused on finding a sustainable and lasting solution to the impasse affecting the Dangote Refinery.
All parties expressed their commitment to proactive problem-solving and underscored the importance of cooperation to ensure the success and optimal performance of Nigeria’s oil and gas sector, crucial for the nation’s economic growth and energy security.
The Manufacturers Association of Nigeria (MAN) has voiced concerns that the dispute could discourage foreign investors. Segun Ajayi-Kadir, MAN’s Director-General, emphasized that regulatory agencies should promote an enabling business environment rather than undermine local investments.
Ajayi-Kadir stated, “Local investors are the drivers of economic growth and national development. The recent unwarranted castigation of Dangote refinery sends a negative signal to potential investors.”
The Dangote Refinery, the largest single-train refinery in the world, has the potential to significantly reduce Nigeria’s dependency on imported petroleum products, decrease costs, and boost energy sufficiency. It has already created approximately 100,000 jobs and is expected to generate $25 billion in revenues from exports.
The ongoing dispute has drawn criticism from various quarters, with calls for the government to support and protect local investors like Dangote, who play a vital role in the country’s economic landscape.