The federal government on Thursday clarified that Dangote refinery had not been duly licensed to commence distribution of refined crude to major Nigerian marketers, citing concerns of monopoly and inferior quality.

Speaking with journalists on Thursday, Farouk Ahmed, chief executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, said that the indigenous refinery was only about 45 per cent completed and could not be relied on to cater to the petroleum needs of the entire nation.

“Dangote refinery is still in pre-commissioning stage. It has not been licensed yet,” Mr Ahmed stated. “We haven’t licensed them yet. I think they are about 45 per cent completed.”

The NMDPRA boss said the government could not accede to Dangote Refinery’s request to make him the nation’s sole supplier of refined crude products and direct all marketers to his refinery while stopping all importation.

He explained that granting such a request was tantamount to placing the energy security risk and monopolising the sector to favour only Dangote Refinery. 

“We cannot rely on one refinery to feed the nation because Dangote is requesting that we suspend or stop all importation and direct all marketers to him, to the refinery,” Mr Ahmed said. “That is not good for the nation in terms of energy security and that is not good for market because of monopoly.”

He also drew attention to the quality of sulphur produced in the Dangote refinery as not meeting the required West African standard.

“Dangote Refinery, along with other major refineries, they are producing 650 to 1200 PPM. So, in terms of quality, their quality is much more inferior to the imported quality,” the NMDPRA executive stated.