Deregulation isn’t a license to import or blend substandard fuel products, Dangote Petroleum Refinery and Petrochemicals has warned, cautioning importers against using deregulation as an excuse to undermine Nigeria’s energy sector. As the country’s first private refinery, Dangote Refinery voiced concerns about the dangers of allowing low-quality petroleum products to flood the market, stating that such practices could significantly harm national interests.

Responding to a recent statement by Pinnacle Oil & Gas CEO Robert Dickerman, Dangote Refinery clarified that its opposition to substandard imports does not reflect a resistance to competition. It instead urged the Nigerian National Petroleum Company Limited (NNPCL) to keep its promise of commissioning refineries in Port Harcourt, Warri, and Kaduna by year-end, a move that would bolster the local industry and reduce dependency on imports.

Dangote Refinery’s statement came after Dickerman praised the deregulated fuel market’s potential, asserting that Pinnacle Oil upholds strict compliance and integrity in its operations. However, Dangote’s Group Chief Branding and Communications Officer, Tony Chiejina, expressed reservations about allowing deregulation to justify low standards, arguing that it could lead to significant risks for Nigerian consumers and the energy sector.

Without naming specific companies, Dangote Refinery accused a nearby blending plant of planning to introduce off-spec fuel into Nigeria’s market. Although Pinnacle Oil is the only depot close to the Dangote facility in Lagos‘ Lekki Free Trade Zone, Dickerman defended his company’s record, maintaining that a healthy market should involve local refineries and safe imports to keep prices sustainable.

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Dangote Refinery rebuffed the notion that deregulation justifies compromising fuel quality, pointing to examples from the United States where national interest and consumer protection take priority. Citing cases like President Biden’s opposition to foreign steel acquisitions and import restrictions on Chinese products, Dangote challenged Dickerman’s stance, suggesting that the CEO’s approach could undermine Nigeria’s sovereignty over its energy resources.

“We stand firmly against using deregulation as a means to compromise quality,” the statement read. “Our commitment to Nigeria’s economic self-sufficiency and the health and safety of its citizens remains non-negotiable.”

The refinery revealed that Dickerman previously requested a pipeline extension from the Dangote facility to Pinnacle’s tank farms for blending purposes. Dangote said it turned down the request, perceiving it as a threat to consumer trust and public welfare.

Additionally, Dangote questioned Pinnacle’s choice to lease storage facilities to companies without retail operations in Nigeria, especially given the proximity of these facilities to Dangote’s refinery. The refinery cautioned against coordinated efforts that could destabilize Nigeria’s refining sector, linking this to the challenges faced by state refineries in Kaduna, Warri, and Port Harcourt.

Dangote called on the government and Nigerian businesses to prioritize the nation’s economic independence over quick profits. The refinery emphasized the need for policies that foster industrial growth rather than turning Nigeria into a market for imported, low-quality products.

“A self-sufficient energy sector is critical for Nigeria’s economic stability,” Dangote added, underscoring its commitment to advocating for policies that protect both industries and Nigerian consumers. With NNPCL’s upcoming refineries expected to become operational soon, Dangote welcomed competition that encourages quality and innovation within Nigeria’s fuel market.

The refinery expressed enthusiasm for Nigeria’s future as a petroleum refining hub in Africa, reaffirming its dedication to safeguarding consumer interests, promoting high standards, and maintaining Nigeria’s economic sovereignty in a growing and competitive fuel market.