Experts Warn Against Politics in Dangote Refinery Investment
Experts are urging the federal government to address all issues and support the $20 billion Dangote Refinery to attract more investments in Nigeria. Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), mentioned that the refinery is still in the pre-commissioning stage and hasn’t been licensed yet.
In an interview with Vanguard, experts emphasized the importance of resolving these issues for the benefit of Nigeria’s economy. Chinedu Amah, founder of Spark Nigeria, stressed the need for government support for local production to boost economic growth. He criticized the government for allowing continued importation of crude oil and petrol, which he believes hampers economic progress. He highlighted that the Dangote refinery is more advanced and can process crude oil to a better standard.
Mazi Colman Obasi, President of the Oil and Gas Service Providers Association of Nigeria, urged all parties to resolve the conflicts to encourage more investments in Nigeria’s midstream and downstream sectors. An anonymous expert criticized government officials for disparaging a significant local investment on national TV, which he believes discourages foreign investors.
Farouk Ahmed clarified that there are concerns about the supply of petroleum products and denied any attempts to undermine the Dangote refinery. He noted that the refinery is about 45% complete and cannot yet meet the nation’s demand. He also mentioned that the quality of Dangote’s products is currently inferior to imported ones.
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) wrote to President Bola Tinubu, highlighting existing investments in the downstream petroleum sector and expressing concern about the potential creation of a monopoly for the supply of Automotive Gas Oil (AGO) by the Dangote Refinery.
