Nigerian lawmakers are launching an investigation into crude oil shortages and the import of poor-quality fuel, which have sparked conflicts between the Dangote Refinery and the nation’s oil regulator. On Monday, Nigeria’s lower parliament formed a committee to probe these issues, which have also led to long fuel lines across the country.
The committee will investigate claims about substandard fuel imports, the role of standards agencies, and the reasons behind local refineries, including the Dangote Refinery, not receiving adequate crude oil supplies. Co-chair Ikenga Ugochinyere stated that the investigation will begin with these primary concerns, and the findings will be reported to parliament, which will then advise the president.
The $20 billion Dangote Oil Refinery, established by Africa’s richest person, Aliko Dangote, commenced operations in January near Lagos. However, the refinery has struggled to secure sufficient crude oil from Nigeria due to issues such as vandalism, sabotage, and inadequate investment.
Recently, the refinery accused major oil companies of obstructing its access to domestic crude oil and criticized the regulator for permitting the import of high-sulfur fuel, which negatively impacts the refinery’s business. In response, the head of the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) claimed the Dangote Refinery is only 45% complete and cannot meet the country’s demands. He also noted that the refinery’s diesel had a sulfur content of 650 to 1200 parts per million (ppm), which is worse than the imported fuel. Nigerian regulations limit sulfur content in diesel to 50 ppm, with enforcement beginning next year.
During a recent visit by lawmakers, Dangote proposed comparing his refinery’s diesel with others on the market. Tests revealed that Dangote’s diesel had a sulfur content of 87.6 ppm, while other samples exceeded 1800 ppm and 2000 ppm. Following these results, Dangote halted plans to invest in Nigeria’s steel industry due to accusations of attempting to create a monopoly.
The investigative committee has pledged to thoroughly examine the entire oil sector and urged all parties involved to reduce tensions. “The committee is urging stakeholders in the current dispute to de-escalate tensions as we embark on the great task of resolving the issue,” Ugochinyere said.
