Abuja, July 23, 2024 – Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), has stepped in to mediate the escalating conflict between the Dangote Group and key regulatory bodies in Nigeria’s oil sector. The disagreement involves allegations of sabotage and concerns over product quality at the Dangote Refinery.
On Monday, Lokpobiri met with Aliko Dangote, President of the Dangote Group, and the heads of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Company Limited (NNPCL). The meeting aimed to address accusations from both sides, with Dangote claiming that International Oil Companies (IOCs) in Nigeria were hindering the refinery’s operations by inflating crude prices. This practice, according to Dangote, forces the refinery to import crude at higher costs.
In response, the NMDPRA has accused the Dangote Refinery of producing inferior diesel compared to imported products, citing a 665 ppm diesel quality from the refinery. These public exchanges have prompted widespread criticism, leading many Nigerians to call for government intervention.
In a statement, Nneamaka Okafor, Special Adviser on Media and Communication to Lokpobiri, commended the minister’s leadership in facilitating the dialogue. “The stakeholders expressed their gratitude to the minister for his exemplary leadership and timely intervention,” she said. The discussions focused on creating a sustainable solution to ensure the refinery’s success and the optimal performance of Nigeria’s oil and gas sector, crucial for the nation’s economic growth and energy security.
Meanwhile, the House of Representatives’ Joint Committee on Midstream and Downstream is conducting an investigation into allegations of low-grade petroleum products and the availability of crude oil for domestic refineries. Committee Chairman Ikenga Imo Ugochinyere announced that the investigation would include examining the testing processes for petroleum products, the issuance of licenses, and the importation of refined products.
Ugochinyere emphasized the need for thorough scrutiny of the petroleum sector to uncover and address any irregularities. The committee plans to visit various filling stations, depots, and refineries to ensure compliance with international standards and verify product quality.
