EDITORIAL: Why Are Nigerian Importers Boycotting Dangote Refinery Products?

The spat in the Nigerian oil industry over alleged moves by regulators and other alleged stakeholders including petroleum products importers to squeeze Dangote Refinery out of play in the local market calls for concern.

After decades of failure by state-owned refineries to provide finished products from locally produced crude, Nigerians, penultimate May heaved a huge sigh of relief when the former administration of President Muhammadu Buhari performed what was described as a commissioning of the $20 billion Dangote Refinery located in Lagos, Nigeria.

However, more than 14 months after the alleged commissioning, Dangote Refinery is yet to produce a liter of petrol.

GWG.ng reports that Nigeria presently consumes at least 66 million litres of petrol all of which are imported.

Available Dangote Refinery Products

The Dangote Refinery which is technically in its pre-commissioning stage has mostly been producing Automotive Gas Oil, AGO popularly known as Diesel, and aviation fuel.

Dangote has now cried out that it is being frustrated in its efforts to market diesel in the Nigerian market.

According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Dangote wants the agency which issues licenses for the importation of products into Nigeria not to issue permits to importers of AGO.

That is despite the fact that Dangote which produces about nine million litres of AGO daily is unable to meet the country’s estimated 14 million litres daily demand.

The importers on their part have been peeved over what they claim as earlier attempts by NMDPRA to force Dangote products on them.

Meanwhile, Dangote officials, including the president of Dangote Refinery, Alhaji Aliko Dangote, have gone personal alleging a collaboration between NMDPRA and other stakeholders to frustrate the refinery from the local market.

NMDPRA and questions on quality of Dangote Refinery Products

The squabble has not been helped by the assertion that Dangote products fall short of quality standards, notably in its sulphur content.

Dangote Refinery products by the admission of Alhaji Dangote have as much as 87.5 ppm sulphur content which is above the 50 ppm standard for the West African sub-region.

GWG.ng is, however, troubled by the demand to stop the issuance of import licenses to product importers. This demand is against the grain of free capital economy and it is a prerequisite to the entrenchment of a monopoly.

The question must be asked as to why local importers are shying away from the locally produced Dangote petroleum products? Is it because it is more expensive as it is alleged by some importers?

Whatever, GWG.ng calls on President Bola Tinubu to directly wade into the matter. What many Nigerians had embraced as their solution in terms of reduced prices and a steady supply of petroleum products should not be thrown into the gutters.

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