Dangote Refinery Defends Product Quality, Denies Substandard Claims

Dangote Refinery asserts the quality of its products, denying claims of substandard output. Discover their response to the allegations.

On Friday, Anthony Chiejina, the company’s representative issued a statement dismissing allegations of producing high-sulfur diesel as “malicious”. He regarded it as an intentional act to harm the reputation of the firm.

Online reports claimed that Farouk Ahmed, the CEO of Nigeria’s Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), had suggested that local refineries, such as Dangote refinery, were producing lower-quality products in comparison to imported ones.

The allegations were rebutted by Dangote Industries, who dismissed them as untrue and unfounded. They stressed that their refinery was designed to manufacture first-rate petroleum items in accordance with strict global criteria.

According to Chiejina, the accusations against Dangote Refinery of producing subpar diesel leading to a 37% price drop are baseless and ill-intended. Previously, Nigeria relied on imported diesel with levels as high as 7,000 parts per million (ppm) sulfur content while their locally produced fuel boasts significantly lower levels that make it superior in quality compared to imports. The decrease in prices is not linked to inferior product quality but rather due market factors and dedication towards serving the country better.

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Chiejina refuted allegations that medium-sulfur diesel is inappropriate for on-road applications. He highlighted that if this were the case, equipment would have suffered damage from high sulfur imports over two decades. Additionally, he questioned why lower prices were not observed until Dangote commenced operations when previously imported high-sulfur diesel was sold at elevated costs.

He explained that the decrease in price was influenced by market circumstances and a feeling of responsibility towards his country.

Allegations directed towards NMDPRA and IOCS.

In June, the management of Dangote leveled accusations against NMDPRA for allegedly aiding in the importation of diesel and jet fuel that did not meet industry standards. Devakumar Edwin, who serves as Vice President of Oil and Gas at Dangote Industries, criticized the regulator’s lenient licensing procedures which permitted subpar products to infiltrate Nigeria’s market. Despite complying with ECOWAS regulations, licenses were granted for importing petrol containing high levels of sulfur from Russia – a product often rejected by US and UK restrictions but still dumped into Nigerian markets regardless.

Furthermore, Dangote alleged that International Oil Companies (IOCs) were engaging in price manipulation as a means of weakening the refinery’s standing within the market.