Deregulation not licence to blend off-spec products, Dangote tells Pinnacle Oil

Dangote Petroleum Refinery and Petrochemicals has advised Pinnacle Oil and Gas Limited that deregulation should not be used as a justification to import off-spec petroleum products or undermine national interests.

The refinery made this statement in response to remarks by Robert Dickerman, CEO of Pinnacle Oil and Gas Limited, concerning the importation and blending of petroleum products, which he framed within the context of a “deregulated commodity market.”

It said Dickerman’s argument for a deregulated market could not obscure the serious implications of his actions, which, it claimed, not only threatened the integrity of Nigeria’s energy sector but also endangered the welfare of its citizens.

While reiterating its support for deregulation and industrialisation, Dangote emphasised that this support was grounded in a commitment to the sustainable growth of the country’s economy and the protection of its people from exploitation.

Noting that the health and safety of Nigerians should never be compromised in the pursuit of profit, the company said: “The Dangote Petroleum Refinery and Petrochemicals Company has long been an advocate for deregulation and industrialisation in Nigeria, but our support is rooted in a commitment to the sustainable growth of the country’s economy and the protection of its people from any exploitation.

‘’Unlike Dickerman’s view, deregulation should not be a licence for the importation and distribution of off-spec products or subversion of national interests.’’

The company also noted that as an American, Dickerman should be well aware of how his own country protects its industries.

It pointed to several recent examples from the United States to underline the point, adding that, for instance, U.S. President, Joe Biden, recently opposed the sale of U.S. steel to Japan’s Nippon.

Dangote stressed the importance of maintaining strong American steel companies, supported by American workers, an example of protectionism that prioritises national economic interests over short-term profit.

Similarly, it said the U.S. has taken action to restrict the use of Chinese-made cranes in its ports, citing national security concerns.

According to the company, the U.S. has also imposed a 100% tariff on electric vehicles and a 50% duty on medical equipment imported from China, further demonstrating its commitment to safeguarding domestic industries.

“Furthermore, during his presidency, George W. Bush used anti-dumping laws to impose tariffs on a range of Chinese goods that were considered to be unfairly priced.

“It is, therefore, perplexing that Dickerman, with all his experience in the U.S. market, would advocate the importation and blending of petroleum products to Nigeria under the claim of deregulation and a free market.

‘’The fact is that he had deceitfully approached us and pleaded that we extend the pipeline from our refinery to Pinnacle’s tank farms for the purpose of blending our high-quality products with their imported products and selling them to Nigerians.

“We categorically rejected his request to extend our pipeline to their tank farms for such devious purposes because it would be a betrayal of the Nigerian people’s trust. The health and safety of Nigerians cannot—and should not—be compromised for profit,’’ Dangote stated.

The company also raised concerns over Pinnacle Oil’s decision to lease its tank farms to a company without any retail outlets in Nigeria, questioning the strategic intent behind such actions, particularly given that the farms were located just 500 metres from Dangote’s refinery.

It expressed its vigilance regarding the coordinated efforts to undermine the Dangote Refinery, drawing parallels to the fate of refineries in Port Harcourt, Kaduna, and Warri.

Dangote Petroleum Refinery called on the government, patriotic Nigerians, and local businesses to remain steadfast in defending the country’s sovereignty and economic independence.

“The choice we face is between fostering industrialisation or allowing Nigeria to remain a dumping ground for inferior products while exporting jobs.

“For nearly three decades, cartels and their collaborators have sabotaged efforts to develop Nigeria’s refining capacity, keeping the country dependent on imported products.

“The time has come to end this cycle of exploitation and ensure that Nigeria’s energy sector works for the benefit of its people,” it added.

Reiterating its belief that a strong, self-sufficient energy sector was vital for Nigeria’s economic growth, Dangote affirmed that it would continue to advocate policies and practices that protect both industries and the well-being of all Nigerians.

“At Dangote Petroleum Refinery, we are committed to ensuring that Nigeria becomes self-reliant in petroleum production, and we welcome competition that drives innovation and quality.

“However, we will never allow the continued importation and blending of petroleum products, nor the deliberate destruction of our national economy.

“We believe that a strong, self-sufficient energy sector is vital to Nigeria’s economic growth, and we will continue to advocate for policies and practices that protect our industries and the well-being of all Nigerians.

“We eagerly anticipate the coming on stream of the Kaduna, Warri, and Port Harcourt refineries before the end of this year, as promised by the Group Chief Executive Officer of NNPCL, Mele Kyari. This milestone will not only end all baseless rumours of monopoly but also position Nigeria as a refining hub for petroleum products in Africa,” the company added.