Africa’s richest man, Aliko Dangote, has rejected claims that petroleum products from his refinery are substandard.
He denied the accusations on Saturday when the House of Representatives leaders toured and examined the refinery located in the Lekki Free Trade Zone, Lagos, Nigeria.
The delegation from the House, led by Reps Speaker Tajudeen Abbas and his deputy Benjamin Kalu, also included Hon Ikenga Ugochinyere.
Background
The Chief Executive Officer of NMDPRA Farouk Ahmed in a recent interview with journalists, a video of which is currently circulating on X noted that Dangote was trying to entrench monopoly in the oil and gas sector, that the products are inferior and that the 650,000-bpd refinery is still in the pre-commissioning stage and about 45 per cent completed.
Ahmed added that the country cannot risk dependence on Dangote Refinery alone by suspending petroleum products, especially Automotive Gas Oil and Dual-Purpose Kerosene, DPK.
He said: “That is not so. Dangote Refinery is still in the pre-commissioning stage. It has not been licensed yet. We haven’t licensed them yet. I think they are about 45 percent to completion.
“We cannot rely on one refinery to feed the nation, because Dangote is requesting that we suspend or stop imports, especially of AGO and DPK, and direct all marketers to his refinery. That is not good for the nation in terms of energy security, and it is not good for the market because of the monopoly.”
Ahmed said that in terms of quality, Dangote’s current AGO (diesel) suffers from the lowest quality in terms of sulphur content, falling short of West Africa’s requirement of 50 parts per million (PPM).
“Dangote Refinery, as well as some modular refineries like Watersmith Refinery and Aradel Refinery, are producing between 650 and 1,200 PPM. Therefore, in terms of quality, their products are much, much, more inferior to imported ones,” he stated.
Our products not substandard
Reacting, Dangote said his team tested diesel bought from two filling stations and that from his refinery at the refinery’s laboratories.
The tested diesel from other stations was bought in the presence of the lawmakers, while that from the Dangote Refinery was taken from production also in the presence of the lawmakers.
Two tests were reportedly conducted; a test of the sulphur level and a flash test. While all crude-based products contain some level of sulphur, high sulphur levels cause damage to engines and vehicle components.
The flash point refers to the lowest temperature at which the application of the ignition source causes the vapours above the liquid to ignite with the minimum expected flash point at 66.
The results showed that the sulphur content in the diesel from other stations was above 2,631 and 1,829; much higher than the recommended level while the tests for the flash point showed results of 26 and 63 respectively for the diesel from other stations. Both results fell short of the recommended minimum of 66.
The results for the diesel from Dangote turned out to be 87.6 ppm for sulphur and 96 flashpoints.
He called on the House of Representatives to investigate the quality of diesel and petrol at filling stations.
To carry out the investigation, he urged the House to set up a committee to test products at various filling stations across the country.
No need for investigation – Speaker
Speaker Abbas said going by the presentation and the contradictory claims, there was a need for an investigation.
“I don’t know how we have this contradiction of two players representing the public and private sector,” he said.
“I think it is something we need to investigate further to find out if there are ulterior motives.”
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