The Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, has accused International Oil Companies (IOCs) in Nigeria of attempting to sabotage the new Dangote Oil Refinery and Petrochemicals.
According to Edwin, the IOCs are deliberately inflating the cost of local crude, making it more expensive than the market price, and thereby forcing the refinery to import crude from distant countries like the United States, which incurs higher costs.
During a training program organized by the Dangote Group on Friday, Edwin also criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for granting licenses to marketers to import low-quality, “dirty” refined products into the country.
He noted that despite the Federal Government issuing 25 licenses for refinery construction, only the Dangote Group has fulfilled its commitment.
Edwin highlighted that the refinery has exported over 3.5 billion liters of diesel and aviation fuel, representing about 90% of its production, to Europe in recent months.
He called for more government support to enable the refinery to create jobs and prosperity for Nigeria.
Edwin further explained that while the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is trying to allocate crude oil for the 650,000-capacity refinery, the IOCs’ actions are making it difficult.
He revealed that sometimes the refinery is forced to pay $6 above the market price for crude, reducing output and increasing production costs.
He accused the IOCs of wanting Nigeria to remain dependent on imported refined products by exporting raw materials to their home countries and importing refined products back to Nigeria.
This practice, according to Edwin, creates wealth for the IOCs’ home countries while causing unemployment and poverty in Nigeria.
Edwin also criticized the NMDPRA for granting licenses to import low-quality diesel from Russia, which is then sold in Nigeria.
He pointed out that countries like Belgium and the Netherlands have banned the export of such fuels to West Africa due to their harmful effects on air quality and health.
He appealed to the Federal Government and the National Assembly to ensure the Petroleum Industry Act (PIA) is fully implemented to protect Nigeria’s interests.
Edwin mentioned that Ghana has recently banned the importation of highly contaminated diesel, and Nigeria should follow suit given its refining capacity.
Despite attempts to sabotage the $19 billion refinery project, Edwin expressed confidence that Nigeria would soon stop importing fuel once the Dangote Refinery begins selling Premium Motor Spirit (PMS) in July.
Efforts to get responses from the IOCs and the NMDPRA were unsuccessful at the time of reporting.
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