NMDPRA Labels Dangote Refinery Products as Inferior | READ WHY

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has raised concerns over the quality of petroleum products from Dangote Refinery, as well as those from Watersmith and Aradel refineries. According to NMDPRA's CEO, Farouk Ahmed, the products are inferior compared to imported ones, especially regarding sulphur content.

In a recent interview, Ahmed clarified that Dangote Refinery, which is still in the pre-commissioning stage and about 45% complete, has not yet been issued an operational license. Despite the refinery's massive capacity of 650,000 barrels per day, the NMDPRA stressed the importance of not relying solely on Dangote Refinery for national energy needs. The regulator dismissed allegations of attempts to undermine the refinery, emphasizing the necessity of maintaining diverse sources of petroleum products for energy security and market competition.

Ahmed pointed out that the current diesel output from Dangote Refinery has a sulphur content between 650 and 1,200 parts per million (PPM), falling short of the West African standard of 50 PPM. This discrepancy in quality makes the products less favorable compared to imported ones. The NMDPRA's stance contrasts with earlier statements from Dangote Group executives, who accused international oil companies of selling substandard products in Nigeria and frustrating the refinery's operations.

The NMDPRA's assessment and ongoing scrutiny underline the complexities facing the Dangote Refinery as it prepares to commence fuel supply in August 2024. The regulatory body's concerns reflect broader issues of quality control, market monopoly, and the need for a robust, multi-source energy strategy in Nigeria.