Saturday, 20 July 2024 04:41

Dangote’s quest for import ban on diesel bad for Nigeria’s energy security, competition, FG says

Rate this item
(0 votes)

Aliko Dangote has asked Nigeria to suspend imports of diesel and aviation fuel in a move that would hand his refinery a monopoly on their sale, the head of the country’s regulatory agency said.

“That is not good for the nation in terms of energy security and that is not good for markets in terms of monopoly,” Farouk Ahmed, head of the Nigerian Midstream and Downstream Regulatory Agency, told reporters in remarks shared on social media.

A spokesman for Dangote declined to comment.

Africa’s richest person controls a massive 650,000 barrel-a-day refinery outside Lagos, the commercial capital, producing aviation fuel, naphtha, and diesel. It became operational in January.

The request follows complaints by a Nigerian fuel marketing lobby that the regulator was restricting imports of high-sulphur diesel while allowing it to be domestically produced.

In a letter to Nigerian lawmakers seen by Bloomberg, they said this favored Dangote because of a lack of local competition, characterizing it as an “apparent tilt towards the creation of a monopoly” for his refinery.

A spokesman for the regulator said the permissible sulphur content for imported diesel was 50 parts per million, but local refineries including Dangote are allowed to produce diesel with between 650 and 1,200 ppm.

Fuels with high sulphur content can damage engines and are bad for the environment. They are banned in some parts of the world.

“This is a clear adoption of Dangote Oil Refinery as the sole supplier of automotive gas oil to the nation,” the Depot and Petroleum Products Marketers Association of Nigeria said, referring to diesel. “This situation is detrimental not only to the downstream operators but to the nation as large.”

 

Bloomberg

November 23, 2024

NNPC not delivering quantity of crude oil agreed on, Dangote refinery says

The federal government's plan to sell crude priced in the local currency is faltering, with…
November 24, 2024

PDP governors urge Tinubu to review economic policies amid rising hardship

Governors elected on the platform of the Peoples Democratic Party (PDP) have called on President…
November 24, 2024

Older adults opened up about things they ‘took for granted’ in their 20s and 30s

Last month, we wrote a post where older adults from the BuzzFeed Community shared things…
November 16, 2024

Influencer eats pig feed in extreme attempt to save money

Popular Douyin streamer Kong Yufeng recently sparked controversy in China by eating pig feed on…
November 22, 2024

FG excited as pro-Biafra agitator Simon Ekpa arrested in Finland on terrorism charges

Simon Ekpa, the controversial leader of the pro-Biafra faction Autopilot, was arrested by Finnish authorities…
November 24, 2024

What to know after Day 1004 of Russia-Ukraine war

WESTERN PERSPECTIVE Putin signs law forgiving debt arrears for new Russian recruits for Ukraine war…
November 21, 2024

Nigeria comes top in instant payment system inclusivity index in Africa

Nigeria’s instant payment system is projected to advance to the maturity inclusion spectrum ahead of…
October 27, 2024

Nigeria awarded 3-0 win over Libya after airport fiasco

Nigeria have been awarded a 3-0 victory over Libya, and three vital points, from their…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.