Experts weigh in as NASS considers sanctions amid Dangote Refinery dispute

The Nigerian government has extended an olive branch to Aliko Dangote, Chairman of Dangote Group, amidst the dispute between Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over substandard petroleum products.

This development follows a vow by Nigerian lawmakers, particularly the Senate, to take a firm stance against economic saboteurs in the petroleum industry.

On Monday night, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, convened a high-level meeting with Dangote, NMDPRA CEO Farouk Ahmed, and other key stakeholders to address the quality issues of the refinery’s petroleum products and domestic crude oil supply challenges.

Participants included Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Mele Kyari, Group CEO of Nigerian National Petroleum Corporation Limited (NNPC). According to a statement by Lokpobiri’s media aide, Nneamaka Okafor, the meeting aimed to find a sustainable solution to the current challenges affecting Dangote Refinery and emphasized the Minister’s commitment to fostering a conducive environment for Nigeria’s oil and gas sector.

In parallel, both the Senate and the House of Representatives have also intervened to resolve the issues facing the refinery. Senate President Godswill Akpabio expressed concern over economic sabotage in the oil and gas sector and established an ad-hoc committee to address the challenges facing Dangote Refinery and the broader industry.

Previously, the House Committee on Midstream and Downstream, chaired by Ikenga Imo Ugochinyere, called on Dangote Refinery and NMDPRA to halt their accusations and counter-accusations over alleged substandard products from the refinery. The Committee has commenced an investigation into these issues, as well as challenges related to crude oil supply.

The conflict between Dangote Refinery and NMDPRA began in June 2024, when Dangote Industries Limited’s Vice President, Devakumar Edwin, accused NMDPRA of granting licenses to import dirty fuel. The situation escalated when NMDPRA’s CEO, Farouk Ahmed, claimed the refinery’s diesel product was inferior compared to imports, which Dangote’s representatives have denied.

The refinery has struggled to secure domestic crude oil supplies, seeking imports from the United States, Brazil, Libya, and Angola. This issue has drawn attention from NUPRC, which is working to ensure compliance with the Petroleum Industry Act’s Domestic Crude Supply Obligation.

Experts have weighed in on the situation, emphasizing the need for the government to support domestic production and address corruption in the importation process. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, and Joseph Eleojo, an energy expert, both advocate for measures to enhance domestic refining capabilities. Meanwhile, Barr. Ameh Madaki, Managing Partner at BBH Consulting, urges regulatory enforcement to ensure fair competition in the oil sector.