Lokpobiri Mediates Resolution Among Stakeholders Over Dangote Refinery Issues

By Milcah Tanimu

Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), has facilitated a high-level meeting to address ongoing disputes concerning the Dangote Refinery. The meeting took place on Monday in Abuja and aimed to resolve conflicts among key figures in the oil and gas sector.

Attendees included Alhaji Aliko Dangote, Chairman/CEO of Dangote Group; Mr. Farouk Ahmed, Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA); Mr. Gbenga Komolafe, Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC); and Malam Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd).

Recent disagreements had arisen between Dangote Group, NMDPRA, and NNPC Ltd. Dangote claimed that NNPC Ltd’s stake in the refinery had reduced from 20 percent to 7.2 percent due to unpaid shares, which were due in June. NNPC Ltd countered that it had informed Dangote of its decision to limit its equity based on the paid-up sum months prior.

Additionally, there were conflicts between Dangote and NMDPRA over licensing issues, with NMDPRA stating that the refinery was still in its pre-commissioning phase and that its diesel did not meet international standards. Dangote disputed these claims and accused International Oil Companies (IOCs) of inflating crude oil prices through foreign trading arms.

The meeting, convened by Lokpobiri, sought to find a resolution to these issues, with all parties expressing a commitment to collaborative problem-solving. The minister emphasized the need for cooperation and synergy among stakeholders to ensure the success and optimal performance of Nigeria’s oil and gas sector, which is crucial for the country’s economic growth and energy security.

Stakeholders appreciated Lokpobiri’s leadership and timely intervention. The discussion marked a significant step toward resolving the current challenges and highlighted the minister’s dedication to creating a supportive environment for Nigeria’s oil and gas industry. The Dangote Refinery, with a $20 billion investment and a refining capacity of 650,000 barrels per day, is expected to significantly impact Nigeria’s oil sector by reducing dependence on imported fuel.