The Dangote Petroleum Refinery has responded to remarks from Pinnacle Oil and Gas Limited and other oil marketers, asserting that the deregulation of Nigeria’s downstream oil sector should not be used as an excuse for importing substandard petroleum products or undermining the country’s national interests.
This statement came on Tuesday after Robert Dickerman, CEO of Pinnacle Oil and Gas, suggested that the deregulated market allowed for the importation and blending of petroleum products, framing his argument within the context of a “deregulated commodity market.”
Earlier, on Sunday, the Dangote Refinery criticized Pinnacle Oil for establishing a blending plant near its facility in Lagos, accusing the company of planning to sell substandard petroleum products to Nigerians. While Dickerman denied the accusation, Dangote maintained that his argument for deregulation could not overshadow the risks posed by such actions, which, according to Dangote, threatened the integrity of Nigeria’s energy sector and jeopardized public welfare.
Dangote reiterated its support for deregulation and industrialization, but emphasized that this support is rooted in fostering sustainable economic growth and protecting Nigerians from exploitation. The refinery stressed that the health and safety of the Nigerian populace should never be sacrificed in the pursuit of profit.
“The Dangote Petroleum Refinery has long been a proponent of deregulation and industrialization in Nigeria, but our stance is founded on a commitment to sustainable economic growth and the protection of our people from exploitation,” the company stated. “Contrary to Dickerman’s view, deregulation should not be a free pass for the importation and sale of off-spec products, nor should it come at the expense of national interests.”
Dangote also pointed out that Dickerman, as an American, should be familiar with how his own country defends its industries. To underscore its point, the refinery cited recent examples from the United States, where President Joe Biden opposed the sale of US Steel to Japan’s Nippon Steel, highlighting the importance of safeguarding American industries and workers. Similarly, the US has restricted the use of Chinese-made cranes in its ports and imposed high tariffs on Chinese electric vehicles and medical equipment, all in the name of protecting domestic interests.
The refinery further reminded Dickerman of the United States’ focus on bolstering its own production of essential goods like computer chips and medical supplies, driven by national security and economic self-sufficiency concerns. Dangote also referenced the anti-dumping measures implemented by the Bush administration, which placed tariffs on Chinese goods deemed to be unfairly priced.
Given these examples, Dangote expressed confusion over Dickerman’s stance, particularly his proposal to blend imported petroleum products with high-quality ones from Dangote’s refinery and sell them in Nigeria. Dangote stated that it had rejected Pinnacle’s request to extend its pipeline to Pinnacle’s tank farms, calling the proposal a betrayal of Nigerian consumers. The refinery emphasized that Nigerians’ health and safety should never be compromised for the sake of profit.
Dangote also raised concerns about Pinnacle Oil’s decision to lease its tank farms to a company without retail outlets in Nigeria, questioning the motives behind this arrangement, especially since the tank farms are located just 500 meters from Dangote’s refinery.
The refinery warned that efforts to undermine its operations mirrored the fate of the country’s other refineries in Port Harcourt, Kaduna, and Warri, and called on the government, local businesses, and patriotic Nigerians to stand firm in defending the country’s sovereignty and economic independence.
“The choice before us is whether to promote industrialization or allow Nigeria to continue as a dumping ground for inferior products, while exporting jobs,” Dangote said. “For nearly three decades, cartels and their allies have worked to keep Nigeria dependent on imported products, undermining the development of local refining capacity. It’s time to break this cycle and ensure that Nigeria’s energy sector serves the interests of its people.”
Reaffirming its commitment to Nigeria’s economic growth, Dangote emphasized that a strong, self-reliant energy sector is key to the nation’s prosperity. The company expressed support for healthy competition that fosters innovation and quality, and it looked forward to the commissioning of the four state-owned refineries, as promised by the NNPCL.
“We are fully committed to helping Nigeria become self-sufficient in petroleum production, and we welcome competition that encourages innovation and quality. However, we will not tolerate the continued importation and blending of substandard products, nor will we allow the deliberate destruction of our national economy,” the refinery concluded. “We are also optimistic about the upcoming launch of the Kaduna, Warri, and Port Harcourt refineries, which will put an end to rumors about monopolies and position Nigeria as a leading refining hub in Africa.”
