“We Cannot Rely on One Refinery to Feed The Nation”: NMDPA Replies Dangote Over Non-Supply of Crude
- The federal government of Nigeria has declared that it will continue bringing refined petroleum products into the nation
- The government said undue reliance should not be placed on the $20 billion refinery located in the Lekki Free Zone of Lagos state
- The head of the NMDPRA warned that Nigeria could not get all of its fuel from the Dangote plant
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
To avoid monopoly and maintain energy security, the federal government of Nigeria has announced that it will keep importing refined petroleum products into the country in addition to the commodities produced by the Dangote Petroleum Refinery.
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It stressed that the $20 billion refinery in Lagos' Lekki Free Zone should not be overly relied upon, adding that the company's insistence that all oil marketers purchase their goods from it undermines competition.
The development is coming after oil marketers condemned the International Oil Companies (IOC) operating in Nigeria for failing to provide crude to local refiners, prompting the House of Representatives to establish an ad hoc committee to look into claims of non-supply of crude oil to Dangote refinery.
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NMDPA speaks
Addressing the matter, the Nigerian Midstream and Downstream Petroleum Authority, a government agency, declared that the country would not halt the importation of petroleum products. It argued that Nigeria cannot rely on a single refinery to supply its needs.
Farouk Ahmed, the chief executive of NMDPRA, said this while addressing journalists in Port Harcourt, Rivers state.
Ahmed also refuted allegations by Dangote Group that foreign oil firms are impeding the refinery's ability to supply crude, claiming that the allegations were untrue.
The refinery had been selling aviation fuel and diesel in Nigeria for months, but Ahmed disclosed that it lacked a license, stating that the Dangote refinery was still in the pre-commissioning phase
Ahmed declared:
“The claim by some media houses that there were steps to scuttle the Dangote refinery is not so. The Dangote refinery is still in the pre-commissioning stage. It has not been licensed yet; we haven’t licensed them yet. They are still in pre-commissioning. I think they have about 45 per cent completion.”
The head of NMDPRA claimed in order for the refinery to become Nigeria's exclusive fuel supplier, it had asked the regulator to stop granting import licenses to other marketers.
“We cannot rely heavily on one refinery to feed the nation, because Dangote is requesting that we should suspend or stop the importation of all petroleum products, especially AGO, and direct all marketers to the refinery, that is not good for the nation in terms of energy security. And that is not good for the market, because of monopoly,” he stressed.
Meanwhile, An ad hoc committee of the House of Representatives has been established to look into claims that Dangote Refinery and Petrochemicals Limited is not receiving crude oil.
Oil marketers speak on petrol prices
Legit.ng earlier reported that oil marketers expect petrol to be released from the Dangote refinery, as they disclose that the facility’s management has not reached a pricing agreement with marketers on the product.
Legit.ng had reported that the refinery announced a new date for the supply of petrol, shelving the July date earlier announced.
Aliko Dangote, president and CEO of Dangote Industries Limited, revealed that the refinery was set to roll out its petrol in August 2024 after it resolved its crude oil supply issues with the help of the Nigerian National Petroleum Company Limited (NNPC) and the Nigerian government.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
