Business a.m.
Aliko Dangote, president of Dangote Industries Limited (DIL), has refuted claims made by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) that the petroleum products produced by his Lagos-based refinery are substandard, asserting that DIL’s diesel is, in fact, 80 percent better in quality than the diesel being imported into the country.
The billionaire industrialist stated this while addressing lawmakers who were on a weekend tour of the Dangote Refinery, using the opportunity to reaffirm the refinery’s compliance with the necessary quality standards.
In light of the recent controversy surrounding the Dangote Refinery, it bears recalling that Farouk Ahmed, the chief executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, disclosed in a recent interview with news outlets that the Dangote refinery, with a production capacity of 650,000 barrels per day, has not been granted the necessary licence by the regulatory body.
Ahmed further alleged that the quality of the Dangote Refinery’s diesel is inferior to that of other refineries, both modular and non-modular.
“So, in terms of quality, currently the AGO quality in terms of sulphur is the lowest as far as the West African requirement of 50 ppm is concerned.
“Dangote Refinery and some modular refineries, like Waltersmith Refinery and Aradel Refinery, are producing between 650 to 1,200ppm. So, in terms of quality, their product is much more inferior to the imported quality,” the NMDPRA CEO alleged.
Meanwhile, during the lawmakers’ visit to the Dangote Refinery, the delegation led by Tajudeen Abbas, speaker of the House of Representative and his deputy, Benjamin Kalu, observed a credibility analysis at the refinery’s laboratory to assess the quality of the diesel product.
In an effort to showcase the quality of his refinery’s products, Aliko Dangote requested that the lawmakers observe two important tests conducted at the Dangote Refinery laboratory.
To ensure impartiality, diesel samples were purchased from two different filling stations situated along the Lekki-Ajah axis in the presence of the lawmakers. These samples were then subjected to the same testing as a diesel sample produced by the Dangote Refinery itself. The test procedure involved a sulphur level test and a flash test, both key indicators of diesel quality.
As a natural component of crude oil diesel, like other crude-based products, contains some level of sulphur. However, when the sulphur levels are excessively high, they can wreak havoc on vehicle engines and components, leading to costly damage.
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, indicating that both results fell short of the recommended minimum of 66.
However, the results for the diesel from Dangote turned out to be 87.6 parts per million (ppm) for sulphur and 96 flashpoints.
For Dangote, the result does not only show the reality of products from his refinery, but it also shows that substandard petroleum products are being imported into the country and sold to unsuspecting Nigerians.
Commenting on the result, Dangote said: “Our quality is about 600 to 650 ppm and is one of the best in terms of quality at that time when we started. But as of today, we’re at 87 ppm.
“I want to plead with the regulator to come at any time, whether Sunday or Monday or take the sample, and I guarantee you before he gets here, our ppm will be even below 10.
“The sample from TotalEnergies’s diesel showed 1,829ppm sulphur concentration. The sample from Matrix Retail showed 2,653 ppm. Matrix was 61 below 66, and Total was 26, flash point. Our flash point showed 96. If you want to do the rest, we can run it at any given time.
“Today I want to announce to Nigerians that our parameters today are extremely, very good parameters. By the end of next week, we should be at 50 ppm and by August, it should be down to 10 ppm.”
The Dangote Group founder further disclosed that the NMDPRA accredited and approved the Dangote Refinery Laboratory in March 2024.
Speaker Tajudeen Abbas expressed surprise at the contradictory statements from the NMDPRA, which had certified the refinery’s operations as meeting requirements, and reports suggesting the Nigerian National Petroleum Company (NNPC) was unhappy with the product quality.
In the face of conflicting statements and quality concerns, Abbas and Dangote both indicated commitment to uncovering the truth behind the discrepancies.
Abbas recognised the need for a thorough investigation to uncover any potential ulterior motives, while Dangote expressed confidence in the quality of the testing procedures at his refinery’s laboratory.
Dangote, in turn, raised the possibility that other laboratories may be producing biassed results due to external influences, advocating for an independent testing approach that includes the purchase of samples from various filling stations to ensure impartiality.
In response to Abbas’s query about subjecting the Dangote Refinery’s products to further testing, Dangote proposed a bold solution that prioritised transparency and accuracy.
Dangote’s proposal entailed the formation of a testing team, led by the CEO of NMDPRA, and a representative from the Dangote Refinery, that would purchase samples from various filling stations and subject them to rigorous testing. This approach, he noted, would allow for an independent assessment of the quality of diesel being sold throughout the market, potentially shedding light on any discrepancies and potential biases.
The industrialist, in addition to addressing the quality concerns surrounding his refinery’s diesel production, also responded to accusations of monopolistic practices, while clarifying his firm’s vision for the Nigerian market.
Regarding allegations that the Dangote Group had received special incentives during the refinery’s construction, Dangote refuted these claims outright, stressing that his company had not received any preferential treatment.
He further announced that the Dangote Group would no longer be pursuing its steel industry ambitions, as this would involve importing raw materials from overseas and risk being perceived as monopolistic.
