HOSTCOM backs Dangote, modular refineries to end fuel importation

The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) has called on the Federal Government to support the Dangote Petroleum Refinery & Petrochemicals and other domestic refineries to eliminate the nation’s reliance on imported petrol, diesel, and other refined products.

HOSTCOM highlighted the long-standing issues with government-owned refineries, which have been inactive for over two decades. Despite being a leading crude oil producer in Africa, Nigeria continues to depend on imports for its refined product needs. During a visit to the Dangote Petroleum Refinery in Ibeju Lekki, which has a capacity of 650,000 barrels per day, HOSTCOM’s leadership emphasised the need for Nigeria to refine its crude locally.

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The National President of HOSTCOM, Dr. Benjamin Tamaramiebi, accompanied by his executives and traditional rulers from the Niger Delta, toured both the refinery and the Dangote Fertiliser Limited complex. Notable traditional rulers included HRM Frank Okorakpo, HRM Obafemi Ogaro, and HRM (Capt) Frank Okiakpe.

In a statement following the tour, HOSTCOM’s President called for nationwide support for the Dangote Petroleum Refinery to eliminate the need for imported refined products. The group expressed gratitude to the National Assembly and Nigerians but warned against any acts of sabotage that could hinder the country’s progress towards self-sufficiency in refined products.

“We are grateful to the 10th National Assembly, good-spirited individuals and associations who have been rallying support for Aliko Dangote. We HOSTCOM have come today to drum up support for Dangote Refinery. We will stand with Dangote to put an end to the continuous importation of less quality and costly refined petroleum products into Nigeria,” stated the group.

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The group, comprising all states producing oil and gas in Nigeria, lamented that despite the billions of dollars spent on the turnaround maintenance of Nigeria’s refineries, the country remains reliant on importing refined products. This persistent issue, it argues, highlights the widespread corruption within Nigeria’s oil and gas industry, allegedly orchestrated by influential cabals intent on maintaining the status quo of exporting crude oil while importing refined petroleum products. HOSTCOM warned that it will not hesitate to publicly name these identified cabals if necessary.

“Our visit today to the largest and magnificent 650,000 bpd private refinery in Africa, Dangote Refinery, has opened our eyes to several ills, particularly the monumental corruption in the Nigerian oil and gas industry. It is obvious why the existing federal government refineries in Port Harcourt, Warri, and Kaduna can never operate maximally despite the billions of dollars spent on so-called Turn Around Maintenance over the years. It is now clear that some persons in government and outside government have been identified as the cabal holding Nigeria’s oil industry in a stranglehold. We have identified them, and we shall make their names known to the people of Nigeria,” it said.

HOSTCOM emphasised that every Nigerian’s aspiration is for the country to refine its own crude oil for the benefit of its people, warning that any individual who opposes this national desire will face the wrath of the masses. The group also criticised Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), over his statement that the government would not halt the importation of refined petroleum products. HOSTCOM called on President Bola Ahmed Tinubu to remove Ahmed from his position, arguing that his previous associations with key players in the sector make him unfit to effectively regulate the downstream industry.

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“We therefore unequivocally call for the immediate sack of Farouk Ahmed. It is now clear that as the CEO of NMDPRA, he is responsible for issuing import licenses to his cronies to continue importing sub-standard refined petroleum products into the country. In hindsight, this is not surprising given his past associations with downstream companies. He is therefore obviously conflicted and incapable of performing the duties of a regulator for the downstream sector. It is important to replace him immediately with someone free from such conflicts,” the group added.

HOSTCOM praised Aliko Dangote for his patriotism in investing in and constructing the refinery in Nigeria, noting that his endeavour has significantly contributed to the country’s economic growth and development. The refinery is seen as crucial in providing local solutions to Nigeria’s refining needs, thereby reducing the nation’s dependency on imported refined petroleum products.

The group urged President Tinubu to support the project, highlighting that it will enhance the economy, create thousands of jobs, ensure the sustainability and affordability of products, and bring substantial benefits to the host communities. “We call on President Bola Tinubu to support and sustain this refinery, which is in his own state. He must do away with the cabals holding the oil sector to ransom,” it added.

HOSTCOM asserted that the President must not tolerate the economic sabotage being carried out by International Oil Companies (IOCs) operating in Nigeria, which have refused to sell crude oil to the Dangote Refinery and other modular refineries. They condemned this as an affront to the Nigerian people and a deliberate attempt to undermine the President’s renewed hope agenda, which aims to revive the economy.

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“We call on Mr President to direct NNPC or NNPCL to compel the IOCs operating in our communities to sell and supply crude oil to Dangote Refinery and other local refineries in line with section 109 of the Petroleum Industry Act (PIA) 2021, particularly section 109(4)(b): ‘the supply of crude oil shall be commercially negotiated between the lessee and the crude oil refining licensee, having regard to the prevailing international market price for similar grades of crude oil,’” it added.

HOSTCOM also pointed out that despite the PIA, the IOCs continue to lack transparency and accountability, alleging ongoing exploitation of oil-producing communities. The group warned that if the IOCs fail to supply crude oil to domestic refineries, host communities will be forced to take decisive action.

“In conclusion, if the NNPC and the IOCs fail to abide by the domestic crude oil supply obligation to sell and supply crude oil to modular refineries and Dangote Refinery, we HOSTCOM will begin agitation for greater autonomy and control of our resources,” it added.

The VP of Gas and Oil at Dangote Industries Limited, Devakumar Edwin, who hosted the delegates, explained that the refinery was established primarily to source and refine local crudes for the benefit of Nigeria, while also exporting excess production to boost the economy. He noted that the lack of sufficient Nigerian crude supplies has necessitated importing crude from other countries and continents. He said that if the refinery had not been designed to process a wide range of crudes, including various African and Middle Eastern crudes as well as US Light Tight Oil, it would have become inactive due to the lack of Nigerian crude supplies.

Edwin said that products from the refinery are of superior quality and meet international standards, conforming to Euro V specifications. This high standard has enabled the refinery to export jet fuel to Europe and the United States. Edwin added that the refinery is committed to environmental protection as it is designed to comply with US EPA regulations, European emission standards, Department of Petroleum Resources (DPR) emission norms, and African Refiners and Distributors Association (ARDA) standards.

He also noted that the refinery, dedicated to enhancing local content, has made substantial contributions to its host communities and significantly boosted employment opportunities within the country.