Devakumar Edwin, Vice-President of Oil and Gas at Dangote Industries Limited (DIL), has accused international oil companies (IOCs) in Nigeria of deliberate efforts to frustrate the operations of the Dangote Oil Refinery and Petrochemicals.
Speaking at a recent one-day training programme organized by the Dangote Group, Edwin detailed the challenges the refinery faces in securing local crude oil.
“The Federal Government issued 25 licences to build refineries, and we are the only one that delivered on the promise. In effect, we deserve every support from the Government,” Edwin asserted. He highlighted that since the start of production, more than 3.5 billion litres, representing 90 per cent of their output, have been exported. However, he emphasized the need for greater support from the Federal Government and regulators to continue creating jobs and prosperity for Nigeria.
Edwin explained that despite efforts by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to allocate crude oil to the refinery, the IOCs have been obstructing these efforts by significantly raising premium prices above market rates. “At some point, we paid $6 over and above the market price,” he revealed. This has forced the refinery to import crude from as far as the United States, resulting in higher production costs and reduced output.
He accused the IOCs of aiming to ensure the refinery’s failure, preferring Nigeria to remain a country that exports crude oil and imports refined products. “They are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their GDP, and dumping the expensive refined products into Nigeria,” Edwin said.
Edwin further criticized the strategy of multinationals, which he claimed has been adopted across various commodities, leading to unemployment and poverty in Nigeria and sub-Saharan Africa. He described this situation as “exploitation — pure and simple.”
The vice-president also lamented the issuance of import licences for low-quality, high-sulphur diesel, which he said harms the Nigerian market and its people. He noted that despite Dangote’s compliance with ECOWAS regulations and standards, traders are importing substandard diesel from Russia, which is banned in several European countries due to its carcinogenic effects.
“In spite of the fact that we are producing and bringing out diesel into the market, complying with ECOWAS regulations and standards, licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian Market,” Edwin stated. He cited recent actions by Ghana to ban such imports, urging Nigeria to follow suit.
Edwin called on the federal government and the national assembly to urgently intervene and ensure the swift implementation of the Petroleum Industry Act (PIA) to protect Nigeria’s interests. He also highlighted the Dangote refinery’s commitment to meeting international standards and its recent expansion into foreign markets, exporting diesel and aviation fuel to Europe and other regions.
“Recently, the government of Ghana, through legislation, has banned the importation of highly contaminated diesel and PMS into their country. It is regrettable that, in Nigeria, import licences are granted despite knowing that we have the capacity to produce nearly double the amount of products needed in Nigeria and even export the surplus,” Edwin said. He concluded by appealing for immediate government action to support the refinery and ensure the well-being of Nigerians.
