Saturday, 20 July 2024 04:41

Dangote’s quest for import ban on diesel bad for Nigeria’s energy security, competition, FG says

Rate this item
(0 votes)

Aliko Dangote has asked Nigeria to suspend imports of diesel and aviation fuel in a move that would hand his refinery a monopoly on their sale, the head of the country’s regulatory agency said.

“That is not good for the nation in terms of energy security and that is not good for markets in terms of monopoly,” Farouk Ahmed, head of the Nigerian Midstream and Downstream Regulatory Agency, told reporters in remarks shared on social media.

A spokesman for Dangote declined to comment.

Africa’s richest person controls a massive 650,000 barrel-a-day refinery outside Lagos, the commercial capital, producing aviation fuel, naphtha, and diesel. It became operational in January.

The request follows complaints by a Nigerian fuel marketing lobby that the regulator was restricting imports of high-sulphur diesel while allowing it to be domestically produced.

In a letter to Nigerian lawmakers seen by Bloomberg, they said this favored Dangote because of a lack of local competition, characterizing it as an “apparent tilt towards the creation of a monopoly” for his refinery.

A spokesman for the regulator said the permissible sulphur content for imported diesel was 50 parts per million, but local refineries including Dangote are allowed to produce diesel with between 650 and 1,200 ppm.

Fuels with high sulphur content can damage engines and are bad for the environment. They are banned in some parts of the world.

“This is a clear adoption of Dangote Oil Refinery as the sole supplier of automotive gas oil to the nation,” the Depot and Petroleum Products Marketers Association of Nigeria said, referring to diesel. “This situation is detrimental not only to the downstream operators but to the nation as large.”

 

Bloomberg

May 11, 2025

Petroleum marketers to Dangote: We’re no cabal; we only have vested interest just like you

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) says no cabal in the…
May 11, 2025

Northern governors call for security strategy overhaul as violence escalates

The Northern States Governors' Forum (NSGF) has praised President Bola Tinubu's ongoing commitment to national…
May 10, 2025

The No. 1 lesson I learnt about relationship building, from a human connection specialist

Developing healthy, lifelong connections is something that Mark Groves knows all about: He equips individuals…
May 10, 2025

Town residents involutarily get high after Police burn 20 tons of confiscated cannabis

The 25,000 residents of Lice, a town in Turkey’s Diyarbakır province, involuntarily got high after…
May 10, 2025

Gunmen kill 30 travellers, burn 20 vehicles in Imo, Amnesty says

Gunmen shot dead at least 30 travellers in an attack in Nigeria's southeastern Imo state,…
May 11, 2025

What to know after Day 1172 of Russia-Ukraine war

RUSSIAN PERSPECTIVE Putin offers Ukraine direct talks without preconditions Russian President Vladimir Putin has offered…
May 11, 2025

African diet – plantains and cassava can be as healthy as tomatoes and olive oil,…

Plantains, cassava and fermented banana drink should be added to global healthy eating guidelines alongside…
January 08, 2025

NFF appoints new Super Eagles head coach

The Nigeria Football Federation (NFF) has appointed Éric Sékou Chelle as the new Head Coach…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2025 NewsScroll. All rights reserved.