In a recent testimony by Devakumar Edwin, Vice President of Oil and Gas at DIL, serious accusations were leveled against international oil companies (IOCs). According to Edwin, these IOCs deliberately seek to sabotage the refinery’s efforts to purchase local oil by excessively raising the premium price above the market price. This maneuver then pushes the refinery to import oil from countries as far away as the United States, at substantially higher costs.
The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has also been singled out for indiscriminately granting licenses to distributors to import lower quality refined products into the country.
Edwin points out that DIL was the only refinery to fulfill the promise of setting up 25 refineries issued by the Federal Government. It is therefore crucial that this refinery receives major support from the competent authorities. Despite their production, 90% of their products were exported, showing their desire to contribute positively to the country’s economy.
It has been noted that while the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) is doing everything possible to make crude available at the refinery, the IOCs persist in their deliberate efforts to sabotage these initiatives. The IOCs appear determined to bankrupt the Dangote refinery by demanding exorbitant prices for crude oil or claiming it is unavailable, thereby pushing the refinery to cut production and import oil from distant countries.
The available evidence clearly indicates that foreign oil companies are intent on seeing the Dangote refinery fail. Their aim appears to be to maintain Nigeria as a crude oil exporter and refined petroleum products importer. This strategy harms the national economy by favoring foreign interests to the detriment of the country’s energy independence.
Ultimately, it is essential that the government and regulators provide substantial support to the Dangote refinery to enable job creation and prosperity of the country. It is imperative to counter the actions of IOCs which jeopardize the development of the local oil industry for the benefit of their foreign interests. Nigeria must act strategically to protect its resources and promote its energy autonomy for the well-being of its people and its economy.