Dangote Rejects Claims of Monopoly and Substandard Products at Refinery
Africa’s richest man, Aliko Dangote, has rejected claims that petroleum products from his refinery are substandard.
On Saturday, when the leadership of the House of Representatives visited and toured the refinery located at the Lekki Free Trade Zone in Lagos, Dangote denied the allegations.
Rep. Speaker Tajudeen Abbas and his deputy, Benjamin Kalu, led the delegation from the House, which included Hon. Ikenga Ugochinyere.
To back his position, Dangote and his team tested diesel bought from two filling stations and that from his refinery at the refinery’s laboratories.
The lawmakers purchased the tested diesel from other stations and also took it from production at the Dangote Refinery.
We conducted two tests: a sulphur level test and a flash test. While all crude-based products contain some level of sulfur, high levels cause damage to engines and vehicle components.
The flash point refers to the lowest temperature at which the application of the ignition source causes the vapours above the liquid to ignite, with the minimum expected flash point at 66.
The results showed that the sulphur content in the diesel from other stations was above 2,631 and 1,829, much higher than the recommended level, while the tests for the flash point showed results of 26 and 63, respectively, for the diesel from other stations. Both results fell short of the recommended minimum of 66.
The results for Dangote’s diesel were 87.6 ppm for sulfur and 96 flashpoints.
According to Dangote, the results not only demonstrate the quality of his refinery’s products but also the importation and sale of subpar petroleum products to unwary Nigerians.
He called on the House of Representatives to investigate the quality of diesel and gasoline at filling stations.
To carry out the investigation, he urged the House to set up a committee to test products at various filling stations across the country.
The House, lamenting the harm substandard products inflict on vehicles and engines, also urged the House to scrutinize the caliber of laboratories utilized for testing imported goods and contrast them with the Dangote Refinery’s.
Dangote also said the claim in some quarters that his group of companies enjoys monopolies is not true.
“If you look at all our operations at Dangote (Group), we add value; we take local raw materials and turn them into products, and we sell.
“We have never consciously or unconsciously stopped anyone from doing the same business that we do.”
“When we first came into cement production, it was only Lafarge that was operating here in Nigeria… Nobody ever called Lafarge a monopoly,” he said, adding that labelling his group of companies as monopolistic is disheartening.
“Monopoly is when you stop people; you block them through legal means. No, it creates a level playing field, where Dangote’s share in cement, for instance, benefits others, some of whom even receive more than we do.
The billionaire business tycoon said his refinery did not enjoy any incentive from the federal government.
In the refinery, we did not receive any incentives from either the Federal Government of Nigeria or Lagos State. Yes, Lagos State gave us a good deal, but we paid $100 million for the land. It wasn’t free land; we paid for it,” he said.
“The majority of the population is with us. Therefore, we remain unfazed and will persist in our current actions.
Addressing the speaker, he said, “The most important thing, your excellency, is to note that the imported one they are encouraging is the specification in the test, but in certain cases, when you check independently, different results will show.”
This, he said, is “because those people who have the lab have been told what to write.”
He stated that visiting the filling stations, purchasing, and testing the products is the best way to assess their quality before importing and selling them to Nigerians.
Speaker Abbas stated that, based on the presentation and the contradictory claims, there was a need for an investigation.
“I don’t know how we have this contradiction of two players representing the public and private sectors,” he said.
“I think it is something we need to investigate further to find out if there are ulterior motives.”