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Home Business

 Nigerian Government Orders Fresh Tests on Dangote Refinery Fuel

Stephen Akudike by Stephen Akudike
July 23, 2024
in Business, company news
Reading Time: 1 min read
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Dangote Refinery: Weep Not Child By Duke of Shomolu
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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has mandated new tests on the diesel produced by the Dangote Refinery amid claims of high sulphur content. This action follows recent assertions by the NMDPRA that locally produced fuel is of inferior quality compared to imported products.

According to George Ene-Ita, spokesperson for NMDPRA, the agency has deployed approximately 15 engineers and scientists to the Dangote Refinery to verify the sulphur content in its diesel. Their findings are expected to be released on Monday, July 22, 2024. Ene-Ita emphasized that NMDPRA has fulfilled its regulatory duties and will not engage in public disputes regarding the allegations.

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Earlier, Farouk Ahmed, the chief executive of NMDPRA, claimed that the Dangote Refinery, still in its pre-commissioning phase, was producing diesel with a high sulphur content without proper licensing. Ahmed highlighted that the refinery is only about 45% complete and stressed that there have been no steps taken to undermine the refinery’s progress.

In response, the Dangote Refinery management refuted the allegations, asserting that their fuel products are significantly superior—by 80%—to imported petroleum products. The company also accused the regulatory authority and international oil companies of inflating crude oil prices, forcing Dangote to import crude from distant countries like the US and Brazil.

The controversy has sparked a wider debate, with Nigerians criticizing the NMDPRA for potentially misleading the public and expressing support for the Dangote Group.

In a related development, the Dangote Refinery is negotiating with Libya to secure crude oil for its 650,000 barrels per day facility. The refinery is also exploring options to source crude from Angola and Senegal to mitigate challenges with domestic supplies.

This situation unfolds as the Nigerian government continues to address the complexities of local fuel production and its regulatory landscape, aiming to balance quality assurance with economic development.

 

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