Business
Deregulation, Not License For Off-spec Products Blending – Dangote Refinery
The Dangote Petroleum Refinery and Petrochemicals is of the view that deregulation should not be used as a justification for the importation of off-spec petroleum products or the undermining of Nigeria’s national interests.
This was contained in a statement on Tuesday by Dangote’s Group Chief Branding and Communications Officer, Anthony Chiejina.
The counsel came in response to remarks by Chief Executive Officer of Pinnacle Oil and Gas Limited, Robert Dickerman, on the importation and blending of petroleum products, which he framed within the context of a “deregulated commodity market.”
However, the Dangote Petroleum Refinery is of the view that his argument for a deregulated market could not obscure the serious implications of his actions, which, it claimed, not only threatened the integrity of Nigeria’s energy sector but also endangered the welfare of its citizens.
While reiterating support for deregulation and industrialisation, the Dangote Refinery emphasised that the support must be grounded in a commitment to the sustainable growth of Nigeria’s economy, while shielding the people from exploitation.
The refinery made it clear that the health and safety of Nigerians should never be compromised in the pursuit of profit.
According to the statement, “The Dangote Petroleum Refinery and Petrochemicals Company has long been an advocate for deregulation and industrialisation in Nigeria, but our support is rooted in a commitment to the sustainable growth of the country’s economy and the protection of its people from any exploitation. Unlike Dickerman’s view, deregulation should not be a licence for the importation and distribution of off-spec products or the subversion of national interests.”
The company also noted that, as an American, Dickerman should be well aware of how his own country protects its industries. It pointed to several recent examples from the United States to underline the point.
For instance, U.S. President Joe Biden recently opposed the sale of U.S. Steel to Japan’s Nippon Steel, stressing the importance of maintaining strong American steel companies supported by American workers — an example of protectionism that prioritises national economic interests over short-term profit.
Similarly, the U.S. has taken action to restrict the use of Chinese-made cranes in its ports, citing national security concerns. The U.S. has also imposed a 100% tariff on electric vehicles and a 50% duty on medical equipment imported from China, further demonstrating its commitment to safeguarding domestic industries.
The U.S. has also ramped up efforts to boost its own production of computer chips and medical supplies, driven by national security concerns and the need for economic self-sufficiency. Furthermore, during his presidency, George W. Bush used anti-dumping laws to impose tariffs on a range of Chinese goods that were considered to be unfairly priced.
“It is therefore perplexing that Dickerman, with all his experience in the U.S. market, would advocate for the importation and blending of petroleum products to Nigeria under the claim of deregulation and a free market. The fact is that he had deceitfully approached us and pleaded that we extend the pipeline from our refinery to Pinnacle’s tank farms for the purpose of blending our high-quality products with their imported products and selling them to Nigerians. We categorically rejected his request to extend our pipeline to their tank farms for such devious purposes because it would be a betrayal of the Nigerian people’s trust. The health and safety of Nigerians cannot—and should not—be compromised for profit,” the statement added.
The company also raised concerns over Pinnacle Oil’s decision to lease its tank farms to a company without any retail outlets in Nigeria, questioning the strategic intent behind such actions, particularly given that the farms are located just 500 metres from Dangote’s refinery.
It expressed its vigilance regarding the coordinated efforts to undermine the Dangote Refinery, drawing parallels to the fate of refineries in Port Harcourt, Kaduna, and Warri.
Consequently, the Dangote Petroleum Refinery called on the government, patriotic Nigerians, and local businesses to remain steadfast in defending the country’s sovereignty and economic independence.
“The choice we face is between fostering industrialisation or allowing Nigeria to remain a dumping ground for inferior products while exporting jobs. For nearly three decades, cartels and their collaborators have sabotaged efforts to develop Nigeria’s refining capacity, keeping the country dependent on imported products. The time has come to end this cycle of exploitation and ensure that Nigeria’s energy sector works for the benefit of its people,” it added.
Reiterating belief that a strong, self-sufficient energy sector is vital for Nigeria’s economic growth, the Dangote Refinery affirmed that it will continue to advocate for policies and practices that protect both industries and the well-being of all Nigerians.
The company also expressed its support for healthy competition that drives innovation and quality, and looked forward to the upcoming commissioning of the four state-owned refineries, as promised by the NNPC Ltd.
“At Dangote Petroleum Refinery, we are committed to ensuring that Nigeria becomes self-reliant in petroleum production, and we welcome competition that drives innovation and quality. However, we will never allow the continued importation and blending of petroleum products, nor the deliberate destruction of our national economy. We believe that a strong, self-sufficient energy sector is vital to Nigeria’s economic growth, and we will continue to advocate for policies and practices that protect our industries and the well-being of all Nigerians.
“We eagerly anticipate the coming on stream of the Kaduna, Warri, and Port Harcourt refineries before the end of this year, as promised by the Group Chief Executive Officer (GCEO) of NNPCL, Mele Kyari. This milestone will not only end all baseless rumours of monopoly but also position Nigeria as a refining hub for petroleum products in Africa,” it concluded.
To underline readiness for its Initial Public Offering (IPO) now in the offing, the Dangote Petroleum Refinery and Petrochemicals (DPRP) has secured a $1bn underwriting for the capital raising.
The programme, structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, comprises a completed and funded $600m private placement and a further $400m underwriting commitment in support of the refinery’s planned IPO.
This was detailed in a statement on Tuesday, in which the Dangote Group said that the $600m private placement has been underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.
It added that Marob Strategies and Lilium Capital are now coordinating the distribution of the underwriting participation across Global Africa, engaging sovereign wealth funds, governments, institutional investors and other eligible investors.
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The response, according to the advisers, has been strong, reflecting growing institutional appetite for large-scale African assets capable of generating long-term economic value.
The programme is also expected to catalyse significant intra-African capital flows and help pave the way towards a more integrated African capital market under the auspices of the African Continental Free Trade Area (ACFTA).
President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, described the transaction as an important milestone for both the refinery and African capital markets.
“This is an important milestone for DPRP and for African capital markets,” Dangote said, adding that the transaction reflected confidence in the refinery’s strategic role and created a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.
“The successful completion of the private placement, together with the $400m underwriting commitment provided by Pan-African Refinery Investment SPV in support of the planned IPO, reflects confidence in the refinery’s strategic role. The work undertaken by Marob Strategies and Lilium Capital has also created a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa,” he said.
Chairman of Marob Strategies, Prof Benedict Okey Oramah, said the transaction demonstrated the appetite for African-led capital markets transactions providing access to transformative assets on the continent.
“As Chairman, I am very proud of the work undertaken by the management team at Marob Strategies to bring this transaction to fruition. Marob Strategies is now focused on disciplined distribution across Global Africa and is engaging sovereign wealth funds, governments, institutional investors and other eligible investors.
“The level of interest confirms the appetite for African-led capital markets transactions that provide investors with access to transformative assets on the continent. The success of this transaction paves the way for many more such transactions in the future,” he said.
Also, Chairman of Lilium Capital Group, Simon Tiemtoré, described the mandate as part of the firm’s effort to connect major African opportunities with institutional investors across Global Africa and international markets.
“This mandate reflects Lilium Capital’s commitment to connecting world-class African opportunities with institutional investors across Global Africa and international markets.
“By mobilising long-term capital for strategic assets such as the Dangote Petroleum Refinery, we are supporting industrialisation, strengthening capital markets and contributing to sustainable economic growth across the continent.
“We are proud to support DPRP on this landmark transaction and look forward to mobilising capital for more transformative projects that create lasting value for Africa”, he said.
The Midstream and Downstream Gas Infrastructure Fund (MDGIF) is stepping up efforts to attract international capital for critical gas infrastructure projects as it seeks to help close Nigeria’s estimated $20 billion annual funding gap in the sector.
The Fund is expanding its collaboration with international financial institutions, including a $500 million agreement with the African Export-Import Bank (Afreximbank), as part of efforts to unlock fresh investment and accelerate the development of Nigeria’s vast gas resources.
Executive Director of the MDGIF, Mr. Oluwole Adama, said the gas infrastructure business remains highly capital-intensive and largely unattractive to conventional commercial lenders because of the long gestation periods and risks associated with such investments.
Adama disclosed this at a recent industry event in Abuja.
He said the Fund was nevertheless supporting about 200 gas infrastructure projects across the country as part of efforts to unlock Nigeria’s estimated 200 trillion cubic feet of gas reserves.
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Adama said the Fund had reached Final Investment Decisions (FID) on 31 projects and supported the construction of more than 200 pieces of gas infrastructure in the past 18 months.
According to him, 10 of the projects have already been commissioned, while another six to eight gas processing plants, as well as more than 50 CNG mother and daughter stations, are expected to be commissioned between October and December 2026.
Established under the Petroleum Industry Act (PIA) 2021, the MDGIF was created to de-risk investment in midstream and downstream gas infrastructure and catalyse private sector participation.
Adama said the Fund was deliberately adopting a different financing model by providing “patient capital through equity ownership rather than traditional loans or grants.”
He explained that the strategy was designed to make capital-intensive gas projects more bankable, particularly in an environment where high commercial lending rates make long-term infrastructure financing difficult.
He stressed that greater utilisation of gas was critical to Nigeria’s energy transition, noting that gas offers a cheaper alternative fuel for automobiles and has significant potential to meet other energy needs.
Also speaking at the event, Executive Director, Finance and Accounts, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Abiodun Adeniji, expressed optimism that the planned African Energy Bank would help address the financing challenges confronting the continent’s energy sector.
Adeniji said the bank could provide financing at rates closer to those available in international markets, rather than the double-digit interest rates typically charged by Nigerian commercial banks.
He also called for stronger funding support for the MDGIF, arguing that adequate capital would enable the Fund to play a more effective role in developing the country’s gas infrastructure.
The Fund’s intervention has already attracted significant capital into gas infrastructure projects. In May 2026, the MDGIF was reported to have committed more than N430 billion to gas infrastructure projects nationwide amid the Federal Government’s commissioning of four flagship Compressed Natural Gas (CNG) projects.
At the time, Hussaini Basaka, Director-in-Charge of Project Management at the MDGIF, said the Fund’s investment had helped catalyse substantially larger private sector investments.
“In ballpark terms, the MDGIF has invested over N430 billion and catalysed about ten times that amount, about N1.6 trillion, in investments,” Basaka said.
He disclosed that, for one of the projects in Abuja, the MDGIF took a 45 per cent equity stake through a substantial capital commitment.
Beyond infrastructure financing, the Federal Government has also introduced interventions aimed at accelerating the adoption of CNG as an alternative transport fuel.
In March 2025, the government launched a N2.5 billion credit scheme to support vehicle conversions to CNG and the local manufacturing of conversion kits.
The Presidential Compressed Natural Gas Initiative (PCNGi) said the scheme was designed to reduce transportation and energy costs, expand gas-based mobility and provide financial relief to Nigerians.
Nigeria’s headline inflation rate fell to 15.43 per cent in July 2026, from 15.91 per cent in June, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS).
The NBS, in its report released on Monday, said the July figure represented a 0.48 percentage-point decline compared with the previous month.
On a month-on-month basis, headline inflation stood at 1.57 per cent in July, down from 1.66 per cent recorded in June.
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The statistics agency explained that the decline meant the average price level increased at a slower rate in July than in the preceding month.
Despite the drop in headline inflation, however, food inflation continued to put pressure on consumers, rising to 20.31 per cent year-on-year in July.
According to the NBS, the increase in food inflation was driven by rising prices of commodities including rice, water yam and plantain.
Food inflation also increased significantly on a month-on-month basis, reaching 5.56 per cent in July, compared with 3.75 per cent in June.
The NBS attributed the monthly increase to changes in the prices of crayfish, fresh pepper, onions, carrots, rice, water yam, tomatoes, garri, plantain, beef, eggs, guinea corn, ginger and plantain flour, among other food items.
At the state level, Adamawa recorded the highest month-on-month food inflation at 17.02 per cent, followed by Lagos at 13.48 per cent and Borno at 13.26 per cent.
Meanwhile, Jigawa, Kebbi and Bauchi recorded declines of 3.68 per cent, 3.67 per cent and 1.85 per cent respectively.
On a year-on-year basis, Adamawa recorded the highest food inflation at 51.36 per cent, followed by Katsina at 30.84 per cent and Zamfara at 30.65 per cent.
Borno recorded a slight decline of 0.31 per cent, while Nasarawa and Kebbi recorded the slowest increases at 6.88 per cent and 12.50 per cent respectively.
The latest figures show that while Nigeria’s overall inflation rate eased in July, food prices remained a major source of pressure on households across the country.
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