Dangote diesel sulphur triggers concern, marketers fault rejection report

The controversy surrounding the sulphur content in the Automotive Gas Oil, popularly called diesel, produced by the Dangote Petroleum Refinery, has yet to abate, The PUNCH reports.

Over the weekend, there were online reports alleging that the diesel recently supplied by the $20bn refinery contained high sulphur.

This came as oil marketers stated that despite the allegations of high sulphur in Dangote diesel, no motorist or industrial consumer had registered any complaint against the product.

“We don’t want to be involved in the politics or claims and counter-claims about Dangote diesel, but what I going to tell you is that no transporter, motorist, or industrial consumer has complained about the diesel since we started distributing it,” the National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, stated.

A top official of the Dangote Group said the recent report on high sulphur content in Dangote diesel emanated from individuals who were hellbent on destroying the refinery, describing the report as fake.

The PUNCH recalls that the  President of the Dangote Group, Aliko Dangote, and some officials of the company had earlier accused the Nigerian Midstream and Downstream Petroleum Authority of importing dirty fuel into Nigeria.

While accusing the international oil companies of plans to frustrate the refinery, the Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, also accused the NMDPRA of granting licences indiscriminately to marketers to import dirty refined products into the country.

According to Edwin, the Federal Government issued 25 licences for the construction of refineries in Nigeria, but only the Dangote Group delivered on its promise.

“The Federal Government issued 25 licences to build refineries and we are the only one that delivered on our promise. In effect, we deserve every support from the government. It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 per cent of our production, have been exported. We are calling on the Federal Government and regulators to give us the necessary support to create jobs and prosperity for the nation,” Edwin had stated.

He alleged that even though Dangote was producing and bringing diesel into the market, complying with the regulations of the Economic Community of West African States, “licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian market.”

Edwin had lamented, “The decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority in granting licenses indiscriminately for the importation of dirty diesel and aviation fuel has made the Dangote refinery expand into foreign markets. The refinery has recently exported diesel and aviation fuel to Europe and other parts of the world. The same industry players fought us for crashing the price of diesel and aviation fuel, but our aim, as I have said earlier, is to grow our economy.”

He argued that because the refinery met the international standard as well as complied with stringent guidelines and regulations to protect the local environment, it had been able to export its products to Europe and other parts of the world.

“It is regrettable that in Nigeria, import licences are granted despite knowing that we can produce nearly double the amount of products needed in Nigeria and even export the surplus. Since January 2021, ECOWAS regulations have prohibited the import of highly contaminated diesel into the region,” Edwin stated.

But while the NMDPRA Chief Executive, Farouk Ahmed, was reacting to Dangote, he denied all allegations of sabotage, stating that it was the Dangote diesel that had higher sulphur content than the imported ones.

Ahmed had revealed that the refinery, which had been selling diesel and aviation fuel in Nigeria for months, had not been licensed, stating that it was still at the pre-commissioning stage with 45 per cent completion.

The NMDPRA boss warned that Nigeria could not rely heavily on the Dangote refinery for its fuel supply.

According to him, the refinery had requested the regulator to stop giving import licences to other marketers so as to be the only fuel supplier in Nigeria.

Speaking about quality, Ahmed alleged, “So, in terms of quality, currently the AGO quality in terms of sulphur is the lowest as far as the West African requirement of 50 ppm is concerned.

“Dangote refinery and some modular refineries, like Waltersmith refinery and Aradel refinery, are producing between 650 to 1,200ppm (parts per million). So, in terms of quality, their product is much inferior to the imported quality.”

Reacting during a tour of the refinery by members of the House of Representatives led by the Speaker, Tajudeen Abbas, recently, Dangote asserted that products refined at the world’s largest single train refinery are of superior quality compared to imported equivalents and meet international standards.

The speaker and other members had observed the testing of Automotive Gas Oil from two petrol stations alongside the same taken from the Dangote refinery.

The diesel samples were procured from two filling stations near Eleko junction along the Lekki-Epe Expressway, Lagos, by the lawmakers.

The Dangote laboratory tests were said to have revealed that Dangote’s diesel had a sulphur content of 87.6 ppm while the other two samples showed sulphur levels exceeding 1,800 ppm and 2,000 ppm respectively.

Speaking, Dangote emphasised that the findings had debunked claims made by Ahmed that imported diesel surpasses domestically refined products.

“We produce the best diesel in Nigeria. It is disheartening that instead of safeguarding the market, the regulator is undermining it. Our doors are open for the regulator to conduct tests on our products anytime; transparency is paramount to us. It would be beneficial for the regulator to showcase its laboratory to the world so Nigerians can compare. Our interest is Nigeria first because if Nigeria doesn’t grow, we have limited capacity for growth.

Dangote argued that the imported products being encouraged by Ahmed have failed in tests, saying most of the importers have fake certificates because the owners of the laboratories have been told what to write.

Speaking about the sulphur content, he added, “I am actually surprised for somebody to come and mention that we have a bad quality; we and other modular refineries. I can’t talk of the quality of the modular refineries, but our own today is 87ppm and by Monday (July 23), we will be at 50ppm, by the beginning of August, we will be at 10ppm.

“All the test certificates people are busy flaunting around today are fake certificates. The demarketing of a company by a regulator that he is supposed to protect is very very unfortunate. We produce the best diesel in Nigeria and if the regulator wants, he can come any time to conduct a test.”

During an interview with The PUNCH, the NMDPRA spokesperson, George Ene-Ita told our correspondent that there are about 15 engineers and scientists of the NMDPRA embedded in the refinery whose reports would get to the agency to confirm the current sulphur content of Dangote’s diesel.

The regulator has yet to make known the report from its men since two weeks ago, especially as the comments from the NMDPRA boss were greeted with backlashes.

However, different laboratory results surfaced online during the weekend, alleging that diesel supplied to retailers between April and July, revealed that the sulphur content in Dangote diesel went up to as high as 1200 ppm.

The online reports said that the fuel, delivered in 32 batches, was supplied to different depots of Rain Oil, AA Rano, TMDK Oil, Kashton, NIPCO, Sobaz, and other retail companies.

It was also alleged that two days after the lawmakers’ visit, the Dangote refinery delivered a shipment of diesel containing 950 ppm of sulphur to AA Rano’s depot in Ijegun, Lagos, saying the certificate of quality, dated July 21 was authorised by an independent laboratory name Intertek.

While reacting to this, an official of the Dangote Group said some individuals were trying to pull down the refinery.

The official, who pleaded anonymity because he was not authorised to speak with the press, described the report as falsehood.

“But you should know where this is coming from. It is false,” the official said

He added further, “They are intentionally circulating the falsehood. They are bent on destroying us. All these are fake documents. They are intentionally circulating it to spoil our good name.”

The source refused to mention names, saying Nigerians know the faces behind the online report.

The NMDPRA spokesperson could not be reached at the time of filing this report.

Dangote refinery, which is supposed to start the sale of petrol in one week, has got the support of President Bola Tinubu, who has ordered the Nigerian National Petroleum Company Limited to sell crude to it in naira.

CSOs speak

In a similar development, a coalition of Civil Society Organisations has said it would set up a situation room to monitor the compliance of NNPCL to the presidential directive to sell crude oil to Dangote refinery in naira.

Leaders of the 28 CSOs who were on a facility tour of the 650,000 bpd world’s largest single train refinery in Lagos said the disposition of NNPC and the regulatory agencies was a clear indication that they deliberately held down the nation’s refineries so that they could continue importing petroleum products.

Speaking on behalf of others, Solomon Adodo, of the Rise Up for A United Nigeria, said what his group had seen was a world class facility and wondered how a regulatory agency of the government could take sides with importers of petroleum products when a local refinery now produces the petroleum products.

He said the CSOs have concluded to petition the Presidency on the need to adopt the Dangote refinery as a national asset that should be used to liberate the country from the shackles of importation of fuel while it exports crude.

In a statement issued on Sunday by the refinery, Adodo said, “Having gone round to see this world class project, we are at a loss as to why the government could decide to turn against Nigerians in this manner. But we are not too surprised given our past experiences. Those who are profiting from our collective misfortune will not want the Dangote refinery to work.

“We are ready to defend this facility with everything as civil society organizations. We are not speaking on our behalf but on behalf of all Nigerians and on behalf of our fatherland. It leaves much to be desired how an agency of government with oversight function to guide to grow such a project as this would now be disparaging the same project. This is too bad.

“We have seen for ourselves and we have cleared all doubt as to the completion of this refinery and the readiness to supply all our domestic needs. We will expose them all. Anyone who is not ready to ensure that Nigeria has a new lease of life must give way. Now it is a fight to finish.

“Going forward, we are going to set up a situation room to monitor the compliance of NNPC with the directive of Mr President that Dangote refinery would be supplied with crude in naira because we know that the enemies of the people would want to adopt another strategy to sabotage the presidential directive.”

Foreign nations invite Dangote

Speaking while welcoming the group, Edwin described Dangote refinery as a value adding facility as it would stop the exportation of Nigeria’s crude and importation of finished products and wondered why the government would be against such a vision for Nigeria.

According to him, many African countries have minerals but they are not adding value to their economies because those minerals are exported raw and the finished products are imported back into the country whereas vice versa should have been the order of the day.

“This is what Dangote refinery seeks to correct, we did the same in the cement and sugar sectors where Nigeria was a leading importer of those products, and with the coming of Dangote leading the backward integration programme of the government, others came into the sector and together Nigeria now exports cement to other countries.

“What we want to do in the refinery, we have done it in other businesses, Nigeria used to be the biggest importer of sugar, we came in and changed the narrative. We led the backward integration scheme of the Federal Government, and we now produce sugar locally for domestic consumption and others have joined us. We did the same in cement by opening up the production plant and today Nigeria exports cement to other countries,” he stated.

On crude supply challenges, the Dangote official said, “We didn’t ask for any favour other than that we want to buy crude to produce. First they said there was no crude, later they said we would have to pay some dollars above the prevailing crude market price. And this is a global market where you can track crude prices anytime. We resorted to buying crude from Brazil and the United States. Later they said we should not be announcing the price of the products.

“Even the US, the leading proponent of a free market economy, protects its local industries by imposing huge duties on from foreign imports just to protect local industries. This is a man that Saudi Aramco once approached to come and cite his refinery in Saudi Arabia, promising steady supply of crude. Abu Dahbi also invited him to do the same on their soil but he rejected it, insisting he would build at home. Now he did that, a facility that is supposed to add value to Nigeria’s economy is being frustrated.”

According to him, Nigeria can only consume 45 per cent of the capacity of the refinery while the remaining 55 per cent will be exported and will bring foreign exchange into the country.