Dangote asks NMDPRA to revoke licences of inactive refineries

Aliko Dangote, president of Dangote Group, has urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to either revoke inactive refinery licenses or impose annual penalties on holders.

Dangote spoke on Tuesday at the West African Refined Products Pricing and Markets Development Conference in Abuja, organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and SP Global Commodity Insights.

The billionaire said encouraging others to build refineries is the responsibility of both the NMDPRA and the government.

“So, NMDPRA, I rely on your leadership to make sure we encourage those people who have collected licenses that they are not using,” Dangote said.

“And I believe anybody who collected these licenses from you, either you cancel them or you put a penalty on a yearly basis so that they will return the license or they will build those refineries.”

‘LOMÉ FLOATING MARKET, MAJOR BARRIER IN AFRICA’

The entrepreneur said one of the biggest barriers to Africa’s refining sector is the offshore Lomé floating market, which he described as a “uniquely African phenomenon”.

He said international traders operate the Lomé market, storing over one million tonnes of petroleum products on vessels offshore and selling them to African countries at inflated prices.

Dangote said building a refinery threatens powerful interests that dominate the petroleum value chain across the continent.

He said the lack of refining capacity had allowed inflated prices, but costs dropped after the Dangote refinery began operations.

“When you build a refinery and disrupt that system, you are not just innovating — you are threatening powerful interests that will seriously fight back,” Dangote said.

“Without political support I don’t think any new large refinery will be built any time soon.”

He said the Lomé floating market is designed to obstruct refinery operations in sub-Saharan Africa.

“But make no mistake—those who profit from this system will do everything they can to prevent other refineries from emerging,” Dangote said.

“The whole essence of Lomé is to ensure that no refinery operates in sub-Saharan Africa. In fact, I don’t see any new major refining project succeeding with the offshore Lomé market in existence.”

He said dumping of cheap, often “toxic fuel blends” is another tactic used to undermine domestic refiners, with products that would never meet standards in Europe or North America.

Dangote said many of the fuels, blended with discounted Russian crude under price caps, undercut local production, which is based on full-market crude pricing.

He said addressing the issues will require coordinated policy, regional cooperation, and ultimately political will.

Dangote added that Africa has an opportunity to replicate the kind of success seen in the cement sector.