Africa’s richest man and Chairman of Dangote Group, Aliko Dangote, has faulted the Nigerian National Petroleum Company Limited (NNPCL) refineries, accusing them of producing low-value premium motor spirit (PMS).
Dangote made the allegation in a recent media interview, insisting that the state-owned facilities cannot compete with his 650,000-barrel-per-day refinery.
According to him, the inability of NNPCL refineries to generate value discourages investment in Nigeria’s downstream oil sector.
“If we don’t make money, nobody will come into this business. Then you end up with only one supplier because NNPC’s refineries can never ever compete, because the market here is a gasoline market.
“When we produce, we have 54 per cent gasoline. NNPC, if they try, will achieve only 18 per cent. They will produce low-value fuel oil, which is not needed today, so it will be a loss. The more they operate, the more money they lose,” he said.
His comments come at a time when the Port Harcourt, Warri, and Kaduna refineries remain shut down for maintenance and review. Despite this, the Group Chief Executive Officer of NNPCL, Bayo Ojulari, has ruled out any plans to sell the refineries.
Dangote also explained that he avoided venturing into fuel distribution initially to prevent being accused of creating a monopoly.
This follows recent tensions between the Dangote Refinery and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG). The union accused the billionaire of monopolising fuel distribution after rolling out his own scheme, but Dangote dismissed the allegations.