Aliko Dangote, Africa’s wealthiest man, has expressed his willingness to sell his multibillion-dollar oil refinery to the state-owned energy company, NNPC Limited.
This comes amid a dispute with a key equity partner and regulatory authorities in Nigeria.
The 650,000 barrel-per-day refinery, which commenced operations last year, represents a $19 billion investment and is seen as a critical asset for Nigeria, which relies heavily on imported fuel.
Dangote’s offer to sell the refinery is seen as a strategic move to resolve the ongoing conflict and ensure the refinery’s smooth operation.
“Let them (NNPCL) buy me out and run the refinery the best way they can. They have labelled me a monopolist. That’s an incorrect and unfair allegation, but it’s OK. If they buy me out, at least, their so-called monopolist would be out of the way,” Dangote said in an exclusive interview.
The successful operation of the Dangote refinery is expected to transform Nigeria’s oil sector, boosting local production and significantly reducing the nation’s fuel import bill.
However, the refinery has been facing challenges, including difficulties in sourcing crude from international producers and regulatory issues with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Dangote has debunked claims that the refinery produces diesel with high sulphur levels, citing lab tests that show the refinery’s diesel has a sulphur content of 87.6 ppm, well below the West African requirement of 50 ppm.
The businessman has also announced plans to halt his investment in Nigeria’s steel industry to avoid being accused of monopoly.
The development comes as a surprise to many, given Dangote’s significant investments and contributions to Nigeria’s development.
