The Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, has raised concerns about the actions of International Oil Companies (IOCs) in Nigeria, accusing them of deliberately impeding DIL's operations.
According to Edwin, the IOCs are intentionally obstructing the refinery's attempts to procure local crude by inflating the premium price above the market rate. This tactic is forcing DIL to resort to importing crude from distant countries such as the United States, incurring additional costs.
During a training program for journalists in Lagos, Edwin also pointed the finger at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), blaming the authority for issuing licenses to marketers to import substandard refined products into the country.
He emphasized that the Federal Government issued 25 licenses to build refineries, with DIL being the only entity to fulfill this commitment. As a result, he urged the government and regulators to extend the necessary support to enable DIL to generate employment and foster prosperity for the nation.
Edwin highlighted the deliberate obstacles posed by IOCs in purchasing local crude despite efforts by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to allocate crude to DIL. He cited instances where DIL had to pay a premium of $6 above the market price, compelling the company to curtail production and resort to importing crude from distant locations, ultimately inflating production costs.
He expressed concerns that the IOCs' objective is to ensure Nigeria continues to export crude oil while relying on imported refined petroleum products. Edwin criticized this approach as detrimental to Nigeria's economy and pointed out that it contributes to unemployment and poverty in the nation while benefiting other countries.
Furthermore, Edwin highlighted the prevalence of import licenses being issued for the importation of high-sulfur diesel into the Nigerian market, emphasizing the adverse health and economic implications of this practice. He also drew attention to the dumping of Russian ultra-high sulfur diesel into the Nigerian market following the imposition of a Price Cap Scheme on Russian Petroleum Products by the US, EU, and UK in February 2023.
It's worth noting that Belgium and the Netherlands recently adopted new quality standards to halt the export of low-quality fuels to West Africa, aligning their standards with those of the European Union. These measures specifically target diesel and petrol with high sulfur and chemical content, historically exported at reduced rates to countries like Nigeria and other West African consumers.
In conclusion, Edwin's concerns underscore the need for regulatory interventions to address the importation of substandard refined products and the obstacles posed by IOCs, ultimately aiming to safeguard the local refining industry and mitigate the economic and public health ramifications associated with these practices.
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