In a recent development that has stirred the Nigerian energy sector, former Minister of Education, Oby Ezekwesili, has called for an independent audit to investigate why the Nigerian National Petroleum Company Limited (NNPC) capped its investment in the Dangote Petroleum Refinery at 7.2 per cent instead of the planned 20 per cent. This call comes amid ongoing controversies surrounding the refinery, as the NNPC’s Group Chief Executive Officer, Mele Kyari, vehemently denied owning a blending plant outside Nigeria.
Ezekwesili, reacting via her official social media handle, expressed her initial reluctance to comment on the Dangote refinery-NNPC saga. However, she was compelled to speak up as more information emerged from both parties involved. “We can reasonably conclude that something seriously murky has gone on and needs to be fully unravelled for public accountability. And urgently, too,” she stated.
Murky Dealings and Public Accountability
The former minister questioned how a project of national significance could be enveloped in such controversy, especially under the scrutiny of both local and international investors. She pointed out that the Nigerian government had previously announced borrowing $3.3 billion from the African Export-Import Bank to secure a stake in the Dangote refinery. Ezekwesili’s call for transparency highlights the opacity with which the NNPC has historically operated, a practice she confronted during her tenure in government.
“When we were in government, I often told the NNPC leadership that they cannot carry on as though there is a ‘Federal Republic of the NNPC’ just because they think of themselves as ‘the goose that lays the golden egg’,” she recalled. Ezekwesili emphasized the need for transparency, citing the establishment of the Nigeria Extractive Industries Transparency Initiative (NEITI) during her tenure, which aimed to enforce transparency in the oil and minerals sectors.
Ezekwesili urged President Bola Tinubu to leverage NEITI to conduct an independent audit of the NNPC’s dealings with the Dangote refinery. This, she believes, will reveal the true state of affairs and ensure public trust. The call for an audit gains urgency as Alhaji Aliko Dangote, President of Dangote Group, recently disclosed that the NNPC’s actual investment in his refinery was only 7.2 per cent, contrary to the 20 per cent initially agreed upon.
“The agreement was actually 20 per cent which we had with NNPC, and they did not pay the balance of the money up till last year; then we gave them another extension up till June (2024), and they said that they would remain where they have already paid, which is 7.2 per cent. So NNPC owns only 7.2 per cent, not 20 per cent,” Dangote explained. The NNPC confirmed this decision, stating it opted not to further invest in the refinery.
The controversy deepened when Dangote claimed that some NNPC officials owned blending plants in Malta, implying conflicts of interest and hindrances to local petroleum procurement. Responding to these claims, Mele Kyari took to social media to clarify his position. Kyari asserted that he does not own or operate any business outside Nigeria except for a local agricultural venture. He also denied any knowledge of NNPC employees owning blending plants abroad.
“I am inundated by enquiries from family members, friends, and associates on the public declaration by the President of Dangote Group that some NNPC workers have established a blending plant in Malta, thereby impeding procurements from local production of petroleum products,” Kyari wrote. He emphasized that such allegations do not influence NNPC’s operations and strategic decisions.
These developments come on the heels of statements by Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), alleging that diesel produced by the Dangote refinery has higher sulphur content than imported diesel. Ahmed’s comments suggested that the country might continue to import fuel to avoid giving Dangote a monopoly, further complicating the refinery’s operational landscape.
Alhaji Aliko Dangote has maintained his stance, rejecting claims of inferior quality diesel and attributing such allegations to efforts aimed at undermining his refinery’s credibility. He has expressed willingness to have the Nigerian National Petroleum Corporation (NNPC) buy out his stake in the refinery if it means the nation would benefit from high-quality products and job creation.
“As you probably know, I am 67 years old. In less than three years, I will be 70. I need very little to live the rest of my life. I can’t take the refinery or any other property or asset to my grave. Everything I do is in the interest of my country,” Dangote stated. His remarks underscore his commitment to national development despite facing significant opposition.
The ongoing controversies surrounding the Dangote refinery highlight the critical need for transparency and accountability in Nigeria’s oil and gas sector. As calls for an independent audit gain momentum, it remains to be seen how the Nigerian government and relevant authorities will respond. Ensuring that investments are made in the public’s best interest and maintaining trust in national projects are paramount for Nigeria’s economic stability and growth.
