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On Tuesday, Aliko Dangote, founder and president/chief executive of the Dangote Group, urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to cancel inactive refinery licenses or impose annual penalties on holders.
Speaking at the West African Refined Fuel Conference in Abuja on Tuesday, organised by NMDPRA and S&P Global Commodity Insights, Mr Dangote said encouraging others to build refineries is the responsibility of the NMDPRA and the government.
“I think encouraging other people to build refineries is the job of the NMDPRA and also the government. So, NMDPRA, I rely on your leadership to make sure we encourage those people who have collected licences to work with you.
“And I believe anybody who collected these licences from you and they are not using it, either you cancel them or you put a penalty on a yearly basis so that they will return the licence or they will build those refineries,” Mr Dangote said.
He said building a refinery threatens powerful interests that dominate the petroleum value chain across the continent.
“Across many African countries, this sector has historically been a major avenue for corruption and rent extraction. When you build a refinery and disrupt that system, you are not just innovating, you are threatening powerful interests that will seriously fight back,” he added.
Speaking further, he said Nigeria has become a net exporter of refined petroleum products, polypropylene, and urea, a historic turnaround.
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“With our Liquefied Petroleum Gas (LPG) production of 2,500 tons per day, we are working to encourage more homes to increase LPG utilisation. And we are just getting started. Very soon, the refinery will be listed to give all Nigerians an opportunity to become shareholders.
“We are open to partnerships with African governments, private investors, and regional institutions. Our vision is simple but ambitious: Africa should refine all the petroleum products it consumes, right here on African soil,” he said.
Addressing concerns of monopoly and dominance in Nigeria’s refining sector, he emphasised that many individuals with the means to contribute to Nigeria’s growth choose to criticise from the sidelines while investing their wealth abroad.
“Before I conclude, let me take this opportunity to address concerns around monopoly and dominance. The reality is that too many people who have both the means and the opportunity to contribute meaningfully to our nation’s growth choose instead to criticise from the sidelines while investing their wealth abroad, adding little to Nigeria’s real economy.
“We have chosen to bet on Nigeria and will continue to do so. So we should not allow dumping to destroy our manufacturing base. Others should be encouraged to build refineries if they are serious,” he added.
In his remarks, the Minister for State, Petroleum Resources (Oil), Heineken Lokpobiri, highlighted the government’s strategic drive to support refiners, marketers, and regulators in creating an enabling environment for seamless trading within the region.
“As a government, our ambition is clear: to position Nigeria as the marketing hub for refined petroleum products in West Africa. This is why we continue to provide support to our refiners, marketers, and the NMDPRA, creating an enabling environment for seamless trading across the region,” he said.
Mr Lokpobiri said in driving success to the midstream and downstream sectors, “We are growing the upstream segment deliberately, which has recorded growth.”
READ ALSO: International oil traders frustrating refineries in Africa – Dangote
This vision, he said, is reflected in President Bola Tinubu’s bold decision to remove the subsidy on petroleum products, a move designed to unlock growth and stimulate investment in the downstream sector.
“While I commend our indigenous players in the refining industry, I urge more investors to seize this opportunity. By expanding our refining capacity, Nigeria can not only meet domestic demand but also become the refining hub for West Africa and the continent at large,” he said.
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