Dangote refinery to Pinnacle Oil: Deregulation isn’t licence to import off-spec products

Dangote Petroleum Refinery says deregulation is not a licence for importing off-spec petroleum products.

On November 3, the Dangote refinery alleged that an international trading company is planning to blend substandard products close to its plant.

In response, Robert Dickerman, chief executive officer (CEO) of Pinnacle Oil and Gas, denied the allegation, noting that it would never engage or attempt to import or distribute any off-spec or substandard product into the Nigerian market.

Dickerman added that in a deregulated environment, the system worked a lot better when allowed to have multiple buyers and multiple sellers.

He said it was the right thing for Nigerians to have supply options, whether for imported petrol or locally refined products.

In a statement on Tuesday, the refinery said Dickerman’s perspective on deregulation overlooks the serious ramifications of his actions, which it asserts not only jeopardise the integrity of Nigeria’s energy sector but also threaten the welfare of its citizens.

While reiterating its support for deregulation and industrialisation, Dangote refinery said the endorsement is rooted in a commitment to sustainable economic growth and the protection of Nigerians from exploitation.

“The Dangote Petroleum Refinery and Petrochemicals Company has long been an advocate for deregulation and industrialisation in Nigeria, but our support is rooted in a commitment to the sustainable growth of the country’s economy and the protection of its people from any exploitation,” the company said.

“Unlike Dickerman’s view, deregulation should not be a licence for the importation and distribution of off-spec products or the subversion of national interests.”

‘SAFETY OF NIGERIANS SHOULD NOT BE COMPROMISED FOR PROFIT’

The refinery noted that Dickerman, as an American, should recognise the protective measures in place for United States industries.

Dangote refinery said it had rejected a request from Pinnacle to extend a pipeline from its refinery to Pinnacle’s tank farms, which would allow the blending of its high-quality products with Pinnacle’s imported products for sale in Nigeria.

“It is therefore perplexing that Dickerman, with all his experience in the U.S. market, would advocate for the importation and blending of petroleum products to Nigeria under the claim of deregulation and a free market,” Dangote refinery said.

“The fact is that he had deceitfully approached us and pleaded that we extend the pipeline from our refinery to Pinnacle’s tank farms for the purpose of blending our high-quality products with their imported products and selling them to Nigerians.

“We categorically rejected his request to extend our pipeline to their tank farms for such devious purposes because it would be a betrayal of the Nigerian people’s trust. The health and safety of Nigerians cannot—and should not—be compromised for profit.”

The refinery said it remains vigilant against coordinated efforts to undermine its operations.

‘TIME HAS COME TO END CYCLE OF EXPLOITATION’

Dangote refinery called on the government, Nigerians, and local businesses to defend the country’s sovereignty and economic independence.

“The choice we face is between fostering industrialisation or allowing Nigeria to remain a dumping ground for inferior products while exporting jobs,” the refinery said.

“For nearly three decades, cartels and their collaborators have sabotaged efforts to develop Nigeria’s refining capacity, keeping the country dependent on imported products.

“The time has come to end this cycle of exploitation and ensure that Nigeria’s energy sector works for the benefit of its people.”

The company reaffirmed its belief in a strong, self-sufficient energy sector as vital for Nigeria’s economic growth and pledged to advocate for policies that protect local industries and the welfare of Nigerians.

The refinery expressed optimism for the upcoming commissioning of the four state-owned refineries, as promised by the Nigerian National Petroleum Company (NNPC) Limited.

“At Dangote Petroleum Refinery, we are committed to ensuring that Nigeria becomes self-reliant in petroleum production, and we welcome competition that drives innovation and quality,” the company said.

“However, we will never allow the continued importation and blending of petroleum products, nor the deliberate destruction of our national economy. We believe that a strong, self-sufficient energy sector is vital to Nigeria’s economic growth, and we will continue to advocate for policies and practices that protect our industries and the well-being of all Nigerians.”

“We eagerly anticipate the coming on stream of the Kaduna, Warri, and Port Harcourt refineries before the end of this year, as promised by the Group Chief Executive Officer (GCEO) of NNPCL, Mele Kyari.”

According to the refinery, the achievement will not only put an end to “baseless” rumours of monopoly but also position Nigeria as a refining hub for petroleum products in Africa.