Dangote Refinery has criticized an unnamed international trading company for hiring a nearby depot to allegedly “blend substandard products” and compete with its higher-quality production in the Nigerian market.
This was disclosed in a statement by Anthony Chiejina, Group Chief Branding and Communications Officer at Dangote Refinery, on Sunday, 3rd of November, 2024.
Chiejina described the development as detrimental to the growth of domestic refining in Nigeria.
Determined to Produce Quality Petroleum Products
Chiejina highlighted that the nearby depot would be harmful to domestic refining in Nigeria.
- He drew the attention of relevant authorities to the fact that other oil-producing and refining countries establish laws and regulations to protect their domestic industries.
- The statement implied that the Nigerian government should follow suit.
“At the same time, an international trading company has recently hired a depot facility next to the Dangote Refinery, with the objective of using it to blend substandard products that will be dumped into the market to compete with Dangote Refinery’s higher-quality production.
“This is detrimental to the growth of domestic refining in Nigeria. We should point out that it is not unusual for countries to protect their domestic industries in order to provide jobs and grow the economy. For example, the U.S. and Europe have imposed high tariffs on EVs and microchips to protect their domestic industries,” the statement partly reads.
Chiejina stressed that while Dangote Refinery remains committed to providing affordable, high-quality, domestically refined petroleum products in Nigeria, it calls on the public to disregard the deliberate disinformation about petrol pricing being circulated by agents of those who prefer to continue exporting jobs and importing poverty.
What you should know
The allegation against the international company is the latest from the refinery, months after the Chief Executive Officer of Dangote Refinery, Aliko Dangote, met with top executives of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Corporation Limited (NNPC) in Abuja to find lasting solutions to the challenges facing the oil sector in the country.
- Before that meeting, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) alleged that the Dangote Refinery was producing inferior products compared to imported ones.
- NMDPRA’s statement sparked a significant public backlash. Many people found his remarks unacceptable, arguing that they undermined a major local industry and did not reflect the true quality of the refinery’s products.
- In response, Dangote invited regulators to test their products. The company said that they are producing better quality products than most filling stations across Nigeria, confidently standing by the superior quality of their output.
- The latest statement from the Refinery comes just days after Dangote addressed the growing fuel scarcity in the country, urging NNPC and other marketers to source fuel from the refinery.
Dangote stated that the refinery has the capacity to meet local demand, even if consumption reaches 55 million liters per day.
He noted that since marketers are already importing petrol, it should not be an issue for them to source products from a local producer.
He emphasized that with the refinery’s products readily available, there is no valid reason for marketers not to pick up supplies from their facility.