Host communities defend Dangote refinery, ask Tinubu to sack NMDPRA CEO

The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) has asked President Bola Tinubu to sack Farouk Ahmed, chief executive officer (CEO) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

In a statement on Saturday, Benjamin Tamaramiebi, the national president of HOSTCOM, said the call for his sack is due to his recent statement that the government would not halt the importation of refined petroleum products.

Tamaramiebi called on the president to remove Ahmed from his position, arguing that his previous associations with key players in the sector make him unfit to effectively regulate the downstream industry.

“We therefore unequivocally call for the immediate sack of Farouk Ahmed. It is now clear that he as the CEO of NMDPRA is responsible for issuing import licenses to his cronies outside the government to continue to import Sub-standards Refined Petroleum Products into the country,” he said.

“In hindsight, this is not surprising given that he has served on the boards of some downstream companies in the past.

“He is therefore obviously conflicted and incapable of performing the duties of a regulator for the downstream sector. It is important to immediately replace him with an individual who is not encumbered by such conflict.”

Tamaramiebi called for nationwide backing of the Dangote refinery to eliminate reliance on imported refined products.

During a visit to the Dangote refinery in Ibeju Lekki, which has a capacity of 650,000 barrels per day, Tamaramiebi emphasised the need for Nigeria to refine its crude locally.

He expressed gratitude to the national assembly and Nigerians but cautioned against any sabotage that could impede the nation’s progress toward self-sufficiency in refined products.

“We are grateful to the 10th National Assembly, good-spirited individuals and associations who have been rallying support for Aliko Dangote. We HOSTCOM have come today to drum up supports for Dangote refinery,” Tamaramiebi said.

“We will stand with Dangote to put an end to continuous importation of less quality and costly refined petroleum products into Nigeria.”

He said despite spending billions of dollars on turnaround maintenance for Nigeria’s refineries, the country still relies on importing refined products.

According to HOSTCOM president, this ongoing problem underscores the widespread corruption within Nigeria’s oil and gas industry, allegedly driven by influential cabals determined to maintain the status quo of exporting crude oil and importing refined petroleum products.

He warned that if necessary, the group will not hesitate to publicly name these identified cabals.

Tamaramiebi said it is every Nigerian’s aspiration for the country to refine its crude oil for the benefit of its people, warning that anyone who opposes this national desire will face the wrath of the masses.

‘DANGOTE REFINERY CRUCIAL FOR NIGERIA’S ECONOMIC GROWTH’

Tamaramiebi commended Aliko Dangote, chairman of Dangote Industries Limited, for his patriotism in investing in and building the refinery in Nigeria, adding that his efforts have greatly contributed to the country’s economic growth and development.

The HOSTCOM president said the refinery is essential for addressing Nigeria’s refining needs locally, thus reducing the nation’s dependence on imported refined petroleum products.

He urged Tinubu to support the project, highlighting that it would boost the economy, create thousands of jobs, ensure product sustainability and affordability, and provide significant benefits to the host communities, among other positive outcomes.

HOSTCOM WARNS AGAINST ECONOMIC SABOTAGE BY IOCs

Tamaramiebi said Tinubu must not tolerate the economic sabotage by international oil companies (IOCs) operating in Nigeria, which have refused to sell crude oil to the Dangote refinery and other modular refineries.

He described this as an insult to the Nigerian people and a deliberate effort to sabotage the president’s renewed hope agenda, which seeks to revive the economy.

“We call on Mr president to direct NNPC or NNPCL to compel the IOCs operating in our communities to sell and supply Crude Oil to Dangote Refinery and other Local Refineries in line with section 109 of the Petroleum Industry Act PIA 2021 particularly section 109(4)(b) “the supply of crude oil shall be commercially negotiated between the lessee and the crude oil refining licensee, having regard to the prevailing international market price for similar grades of crude oil,” he said.

Tamaramiebi said despite the PIA, the IOCs continue to lack transparency and accountability, alleging ongoing exploitation of oil-producing communities.

He warned that if the IOCs fail to supply crude oil to domestic refineries, host communities will be compelled to take decisive action.

Devakumar Edwin, the vice president of gas and oil at Dangote Industries Limited, said the refinery was established primarily to source and refine local crudes for the benefit of Nigeria, while also exporting excess production to boost the economy.

Edwin said the lack of sufficient Nigerian crude supplies has necessitated importing crude from other countries and continents.

He said if the refinery had not been designed to process a wide range of crudes, including various African and Middle Eastern crudes as well as US light tight oil, it would have become inactive due to the lack of Nigerian crude supplies.

The vice president said products from the refinery are of superior quality and meet international standards, conforming to Euro V specifications.

Edwin said this high standard has enabled the refinery to export jet fuel to Europe and the United States.

He added that the refinery is committed to environmental protection, as it is designed to comply with US Environmental Protection Agency (EPA) regulations, European emission standards, Department of Petroleum Resources (DPR) emission norms, and African Refiners and Distributors Association (ARDA) standards.

He said the refinery, dedicated to enhancing local contents, has made substantial contributions to its host communities and significantly boosted employment opportunities within the country.

On July 18, the CEO of NMDPRA, said local refineries, including the Dangote refinery, produce inferior products compared to the ones imported into the country.

This statement has caused a dispute between the Dangote refinery and the NMDPRA.

However, Dangote denied the allegations by testing diesel from his refinery on July 20 when federal lawmakers visited the plant.

He also called for a probe into the allegations of the NMDPRA.

On July 22, the lawmakers launched investigations into Ahmed’s claim.

They said allegations that the IOCs in Nigeria are frustrating the survival of the Dangote refinery will also be probed.

On July 23, the house of representatives asked the federal government to suspend Ahmed over “unguarded comments”.