Dangote Accuses IOCS of Frustrating Refinery over Crude Price Hike

The Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin,  has alleged that International Oil Companies (IOCs) in Nigeria are intentionally hindering the success of the new Dangote Oil Refinery and Petrochemicals.

Edwin claimed that the IOCs are deliberately inflating the cost of local crude oil, making it more expensive than the market price, which forces the refinery to import crude oil from countries like the United States at a higher cost.

Speaking at a one-day training program organized by the Dangote Group, Edwin also criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority for granting licenses to importers to bring in substandard refined products into the country.

Edwin pointed out that although the Federal Government issued 25 licenses for the construction of refineries in Nigeria, only the Dangote Group followed through on its commitment.

He called for government support and highlighted that the refinery has exported over 3.5 billion liters of diesel and aviation fuel to Europe in recent months, accounting for about 90 percent of its production.

He stated that despite the efforts of the Nigerian Upstream Petroleum Regulatory Commission to allocate crude oil for the 650,000-capacity refinery, the IOCs are intentionally obstructing their attempts to purchase local crude.

The Dangote representative mentioned that the refinery has been forced to pay a premium of $6 above the market price by the IOCs, leading to a reduction in output and the need to import crude from countries like the United States at a higher cost.

He highlighted that the IOCs seem to be focused on ensuring the failure of Nigeria's petroleum refinery.

“Their actions indicate a desire to maintain Nigeria as a crude oil exporter while importing refined petroleum products, ultimately making the country dependent on imports.

This approach, he argued, contributes to unemployment and poverty in Nigeria and Sub-Saharan Africa while benefiting the multinationals at the expense of local economies”.

He described this situation as pure exploitation and expressed concern about the country issuing import licenses at the detriment of its economy and the well-being of its citizens.