FG Meets Local Refiners Over Pricing, Blames Dangote

Abuja, Nigeria – The Federal Government of Nigeria has firmly denied recent claims of importing dirty fuel into the country, a position initially raised by an official from the Dangote Petroleum Refinery. This declaration came after a crucial meeting held in Abuja involving oil marketers and local crude oil refiners, including representatives from the Dangote refinery and modular refineries.

Speaking through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the government clarified that issues surrounding refined product pricing, competition, and the importation of products produced locally were discussed. The NMDPRA insisted that high-sulfur content refined petroleum products were last imported in February and that measures have since been implemented to prevent such imports.

Ogbugo Ukoha, Executive Director of Distribution Systems, Storage, and Retailing Infrastructure at NMDPRA, emphasized that the country no longer imports dirty fuel. He stated, “There is no dirty fuel that is being brought into Nigeria.” He addressed the allegations made by Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, who accused NMDPRA of indiscriminately granting import licenses for high-sulfur diesel from Russia. Edwin had claimed that such diesel was being dumped into the Nigerian market, bypassing the refined products from Dangote refinery, which comply with ECOWAS regulations.

Ukoha countered this by asserting that the NMDPRA had adopted stringent procedures to ensure only quality petroleum products were imported. He highlighted that from February 2024, the average sulfur content in diesel imported into Nigeria was below the 50 parts per million (ppm) standard set by law. Additionally, he noted that local refineries are working towards meeting these standards by the end of the year.

Regarding the meeting’s outcomes, Ukoha mentioned that the discussions included pricing and competition issues, aiming for a balanced and beneficial market for Nigerians. The NMDPRA assured continuous engagement with industry stakeholders to maintain energy security and fair pricing.

Oil marketers at the meeting affirmed their continued patronage of local refiners while retaining the option to source products from other avenues. Gabriel Ogbeche, Group Managing Director of RainOil Ltd, stated, “There’s going to continually be a level playing field between the marketers and refiners.”

Rabiu Umar, Group Chief Commercial Officer of Dangote Group, described the meeting as productive and indicative of ongoing efforts to advance the industry.

Concerns had arisen about oil marketers potentially boycotting the Dangote refinery by importing diesel despite its local production. However, the discussions underscored a commitment to collaboration between marketers and local refiners for the industry’s benefit.

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