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Economic Conspiracy: Dangote Accuses IOCs Of Plotting Against Nigerian Refinery

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Dangote Tackle forex shortage with sugar

. . . Laments As Regulator (NMDPRA) Continues To Grant Licences For Importation Of Banned Dirty Diesel, Jet Fuel

There appears to be a strategy of economic conspiracy against Nigeria and Africa being manifest in the oil industry with the International Oil Companies (IOCs) through concerted efforts to frustrate oil refineries in the domestic economy.

Vice President, Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, levelled the accusation, at a one-day training programme for Energy Editors in Lagos.

He maintained that the IOCs in Nigeria were doing everything to frustrate the survival of Dangote Oil Refinery and Petrochemicals.

According to Edwin, the IOCs are deliberately and willfully frustrating the refinery’s efforts to buy local crude by jerking up high premium price above the market price, thereby forcing it to import crude from countries as far as United States, with its attendant high costs.

In addition, Edwin lamented the activity of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in granting licences, indiscriminately to marketers to import dirty refined products into the country.

He said, “the Federal Government issued 25 licences to build refinery and we are the only one that delivered on promise. In effect, we deserve every support from the Government. It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 percent of our production, have been exported. We are calling on the Federal Government and regulators to give us the necessary support in order to create jobs and prosperity for the nation.”

According to him, “While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are trying their best to allocate the crude for us, the IOCs are deliberately and willfully frustrating our efforts to buy the local crude. It would be recalled that the NUPRC, recently met with crude oil producers as well as refineries owners in Nigeria, in a bid to ensure full adherence to Domestic Crude Oil Supply Obligations (DCSO), as enunciated under section 109(2) of the Petroleum Industry Act (PIA).

“It seems that the IOCs’ objective is to ensure that our Petroleum Refinery fails. It is either they are deliberately asking for ridiculous/humongous premium or, they simply state that crude is not available. At some point, we paid $6 over and above the market price. This has forced us to reduce our output as well as import crude from countries as far as the US, increasing our cost of production…

“It appears that the objective of the IOCs is to ensure that Nigeria remains a country which exports Crude Oil and imports refined Petroleum Products. They (IOCs) are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their GDP, and dumping the expensive refined products into Nigeria – thus making us to be dependent on imported products. It is the same strategy the multinationals have been adopting in every commodity, making Nigeria and Sub-Saharan Africa to be facing unemployment and poverty, while they create wealth for themselves at our expense. This is exploitation – pure and simple. Unfortunately, the country is also playing into their hands by continuing to issue import licences, at the expense of our economy and at the cost of the health of the Nigerians who are exposed to carcinogenic products.

“In spite of the fact that we are producing and bringing out diesel into the market, complying with ECOWAS regulations and standards, licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian Market. Since the US, EU and UK imposed a Price Cap Scheme from 5th February, 2023 on Russian Petroleum Products, a large number of vessels are waiting near Togo with Russian ultra-high sulphur diesel and, they are being purchased and dumped into the Nigerian Market.

“In fact, some of the European countries were so alarmed about the carcinogenic effect of the extra high sulphur diesel being dumped into the Nigerian Market that countries like Belgium and the Netherlands imposed a ban on such fuel being exported from its country, into West Africa, recently. It is sad that the country is giving import licences for such dirty diesel to be imported into Nigeria, when we have more than adequate petroleum refining capacity locally…”

Recall that in May, Belgium and Netherland adopted new quality standards to halt the export of cheap, low-quality fuels to West Africa, harmonising its standards with those of the European Union. These measures synchronise fuel export standards with the European domestic market, specifically targeting diesel and petrol with high sulphur and chemical content. Historically, these fuels, with sulphur content reaching up to 10,000 ppm, were exported at reduced rates to countries like Nigeria and other West African consumers.

Belgium’s Minister of Environment, Zakia Khattabi, announced that his country followed the Netherland, which in April 2023 also prohibited the export of low-quality petrol and diesel to West Africa via the ports of Amsterdam and Rotterdam.

Khattabi emphasised that the Netherlands’ decision to restrict dirty fuel exports had redirected the trade to Belgium, now used by oil producers and traders to export gasoline with excessively high levels of benzene and sulphur.

“For far too long, toxic fuels have been departing from Belgium to destinations including Africa. They cause extremely poor air quality in countries such as Ghana, Nigeria, and Cameroon and are even carcinogenic,” said Khattabi.

In September 2017, an investigation by an international organisation, Public Eye revealed that polluted and toxic fuels were being exported on a large scale from the ports of Rotterdam and Amsterdam for export to African markets.

As much as a quarter of the petrol and diesel available in West Africa originates from the ports of Amsterdam, Rotterdam, and Antwerp. These fuels contain sulphur and other pollutants, such as cancer-causing benzene, in quantities up to 400 times the limits permitted in Europe.

The Netherlands and Belgium were enjoined to enforce regulations to shield millions of Africans from exposure to toxic fuels.

The decision of the NMDPRA in granting licenses indiscriminately for the importation of dirty diesel and aviation fuel has made the Dangote refinery to expand into foreign markets.

The refinery has recently exported diesel and aviation fuel to Europe and other parts of the world. The same industry players fought us for crashing the price of diesel and aviation fuel, but our aim, as I have said earlier, is to grow our economy.

He noted that because the refinery meets the international standard as well as comply with stringent guidelines and regulations to protect the local environment, it has been able to export its products to Europe and other parts of the world.

While appealing to the Federal Government and the National Assembly to urgently intervene for speedy implementation of the PIA and to ensure the interest of Nigeria and Nigerians are protected.

He said, “Recently, the government of Ghana, through legislation has banned the importation of highly contaminated diesel and PMS into their county. It is regrettable that, in Nigeria, import licences are granted despite knowing that we have the capacity to produce nearly double the amount of products needed in Nigeria and even export the surplus.

“Since January 2021, ECOWAS regulations have prohibited the import of highly contaminated diesel into the region.”

Energy

NMDPRA Accuses Marketers of Manipulating Cooking Gas Market

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Subsidy Removal: NMDPRA Assures Smooth Fuel Supply

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has pointed fingers at marketers for charging non-cost reflective prices, which has pushed liquefied petroleum gas (LPG) prices as high as N2,100 per kilogram.

The authority disclosed this in a presentation delivered by its Chief Executive Officer (CEO) Rabiu Umar, during an emergency stakeholders’ meeting convened by the Ministry of Petroleum Resources over rising LPG prices across Nigeria, adding that the malpractice was despite significantly lower indicative prices issued by the regulator.

According to the NMDPRA, consumers across the country are paying far above the regulator’s indicative pricing benchmarks due to marketer profiteering and distribution bottlenecks.

ALSO READ: Chevron Ships LPG Abroad from January to May

The NMDPRA noted that cooking gas sells for between N1,600/kg and N2,100/kg in the south-west despite an indicative price range of N1,018/kg to N1,177/kg.

In the north-central, LPG prices range from N1,550/kg to N1,950/kg against an indicative benchmark of N1,066/kg to N1,224/kg, while consumers in the south-south pay between N1,400/kg and N2,000/kg compared with an official guide of N1,021/kg to N1,179/kg.

Umar attributed the disparity to “non-cost reflective pricing” by wholesalers and retailers as well as infrastructure constraints affecting product distribution.

Cooking gas price had risen in May to N2,000/kg in Lagos and N1,600 in Abuja.

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Energy

Gas Flaring: Stakeholders Urge Stronger Enforcement, Tracking

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A call has gone to the operators in Nigeria’s extractive sector to embrace strict governance principles to avert gas production coming at heavy human and environmental costs and consequences.

Stakeholders raised concerns over methane emissions and gas flaring in the Niger Delta, on Tuesday during a webinar titled “Leveraging Media Storytelling to Strengthen Accountability and Enforcement on Methane Emissions.”

The event was put together as part of an advocacy campaign to amplify Flaring Lives, a documentary that exposes the human cost of methane emissions in Nigeria’s oil-producing communities.

ALSO READ: DPRP Refutes PMS Re-importation Claims

The documentary, co-produced by Policy Alert and We The People, with support from the Natural Resource Governance Institute, chronicles the environmental, health and socio-economic impacts of decades of gas flaring and methane emissions on residents of the Niger Delta.

During the virtual event, the Country Manager of the Natural Resource Governance Institute, Tengi George-Ikoli, said Nigeria currently faces the challenge of balancing its gas expansion agenda with its commitments to reduce methane emissions and eliminate routine gas flaring.

According to her, while methane is often discussed as a climate issue, communities living close to oil and gas facilities experience its effects daily through poor air quality, health challenges, environmental degradation and declining livelihoods.

She said, “Nigeria is currently pursuing two ambitions at the same time. On one hand, we are seeking to expand gas production and position gas as a key part of our economic and energy future. On the other, we have made significant commitments to reduce methane emissions, eliminate routine gas flaring, and contribute to global climate goals.

“The challenge is whether these ambitions can be delivered together, and at what cost if they are not.

“For communities living near oil and gas facilities, methane is not an abstract climate issue. It is connected to the air they breathe, the health risks they face, the quality of their farmland and fishing waters, and their everyday experience of living alongside extraction activities.”

George-Ikoli further noted that methane emissions have increasingly become an economic concern as international markets tighten environmental requirements for oil and gas producers.

She explained that major export destinations, particularly in Europe, are beginning to assess not only the volume of energy products supplied but also the environmental conditions under which they are produced.

“The stakes extend beyond local communities. Methane is one of the most powerful greenhouse gases driving near-term warming. It is also becoming an economic issue.

“New international regulations, including emerging methane requirements in major export markets such as the European Union, mean that countries and companies will increasingly be judged not only by what they produce, but by how they produce it,” she stated.

While acknowledging progress made by the Federal Government and industry players through new methane regulations, reporting requirements and improved emissions disclosures, she stressed that policy commitments alone would not solve the problem.

“Progress on paper is not the same as progress in practice. The real test lies in implementation. Are commitments being met? Are emissions being measured accurately? Are regulations being enforced consistently? And most importantly, are the experiences of affected communities reflected in the decisions being made?” she asked.

The NRGI official outlined several measures needed to ensure Nigeria successfully aligns its gas development strategy with methane reduction targets.

She said, “First, enforcement must become stronger and more consistent. Regulations only matter if there are consequences for non-compliance.

“Second, the sector needs a credible and unified approach to measuring methane emissions. You cannot effectively reduce what you cannot accurately measure. A common baseline and robust measurement standards are essential for tracking progress and building trust in reported figures.

“Third, companies should be required not only to disclose their methane emissions, but to actively manage and reduce them. Transparency is important, but disclosure must ultimately lead to action.

“Fourth, initiatives such as the Nigerian Gas Flare Commercialisation Programme have an important role to play and should be accelerated. Every cubic foot of gas captured and put to productive use is gas that is not wasted through flaring.

“Fifth, stronger monitoring, reporting and verification systems are needed across the entire oil and gas value chain. Independent verification and effective oversight are critical if emissions reductions are to be credible.”

She emphasised that the success of methane reduction efforts should not be measured solely by emissions data but by improvements in the quality of life of host communities.

“Community well-being must remain at the centre of decision-making. The success of any methane reduction strategy should not be measured only by tonnes of emissions avoided, but also by whether it improves the lives of the people most directly affected,” she added.

George-Ikoli described Flaring Lives as an attempt to humanise a debate often dominated by statistics and policy targets.

According to her, “The documentary seeks to bring forward voices that are often missing from conversations about energy, development and climate policy.

“Our hope is that it serves not only as a film, but as a resource for journalists, advocates, researchers and citizens seeking to understand what these issues mean in human terms.”

In the same vein, Executive Director of Policy Alert, Tijah Bolton-Akpan, said communities in the Niger Delta have endured the burden of gas flaring for more than six decades, with devastating consequences for public health, agriculture and fisheries.

He said the documentary was designed to provoke reflection and drive accountability among government agencies and industry operators.

“For over six decades, the flames of gas flaring have lit up the night skies of the Niger Delta, a daily reminder of the huge burden borne by oil-producing communities.

“Flaring Lives is not just a documentary; it is a tool for introspection and accountability because behind every flare stack are communities battling respiratory illnesses, contaminated farmlands, vanishing fish stocks and a climate that grows more hostile by the year.

“This is the human cost we are here to talk about today, and it is one Nigeria can no longer afford to wish away,” Bolton-Akpan stated.

He lamented that gas flaring, venting and fugitive methane emissions had long been regarded as unavoidable consequences of oil production, while affected communities continued to bear the environmental and health impacts.

“For decades, gas flaring, venting and fugitive emissions have been treated as an acceptable cost of doing business, while the communities living in their shadow are treated as collateral. That view must change.

“Every day that we allow emissions from these sources to continue unchecked is a day stolen from the health, the environment and the future of these communities.

“The conversation can no longer be about whether this harm is happening; it is about why it is still allowed to happen,” he said.

Bolton-Akpan also challenged journalists and media organisations to intensify investigative reporting on methane emissions and gas flaring, saying the media has a crucial role in exposing environmental abuses and holding both regulators and operators accountable.

“We are calling on media editors and journalists in this room to be more than witnesses; be amplifiers of truth.

“Carry these stories beyond this webinar. Investigate the emission numbers and give voice to the communities whose lungs and livelihoods are the true cost of every cubic metre of gas burned into our atmosphere.

“Policy Alert, alongside our partners, the Natural Resource Governance Institute, Extractives 360 and others, will not relent in pushing for transparency, enforcement and justice,” he added.

Nigeria remains one of the world’s major gas-flaring countries despite years of government commitments to end the practice. Methane, the primary component of natural gas, is recognised as one of the most potent greenhouse gases because of its significant warming effect over a short period.

The Federal Government has introduced a series of measures, including methane regulations and the Nigerian Gas Flare Commercialisation Programme, aimed at reducing routine flaring, improving gas utilisation and supporting the country’s energy transition goals.

However, civil society groups and environmental advocates have repeatedly argued that weak enforcement, inadequate monitoring and poor accountability mechanisms continue to undermine progress, particularly in oil-producing communities across the Niger Delta, where residents bear the environmental and health consequences of emissions from oil and gas operations.

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Energy

Amid LPG Supply, Prices Challenges, Nigeria Flares 77bcf

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Despite persistent Liquefied Petroleum Gas (LPG) prices and persistent concerns over domestic energy shortages, Nigeria flared approximately 76.92 billion standard cubic feet of natural gas between January and May 2026.

This was detailed in data published by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). A cursory look at the Commission’s monthly gas production status reports available at its website indicates that operators burnt a combined 76,919.78 million standard cubic feet of gas during the five-month period.

The flared volumes represent gas that could have been channeled towards power generation, industrial use, compressed natural gas initiatives and domestic cooking gas supply in a country grappling with high energy costs.

A breakdown of the figures showed that Nigeria flared 17,166.08 million standard cubic feet of gas in January, accounting for 7.10 percent of total gas production during the month.

In February, the volume of gas flared dropped to 14,085.55 million standard cubic feet, representing 6.44 per cent of output.

The Commission’s data showed that 15,575.10 million standard cubic feet were flared in March, equivalent to 6.40 percent of total gas produced. The volume declined slightly to 14,517.95 million standard cubic feet in April, although the percentage of gas flared rose to 6.94 percent.

In May, Nigeria flared an average of 0.57 billion cubic feet of gas per day, translating to roughly 15.58 billion standard cubic feet for the month, while the flare rate stood at 6.9 percent.

What is striking about this development is that it is coming when Nigerian households and businesses continue to contend with high energy costs and concerns over the availability of alternative fuels.

Findings showed that cooking gas prices jumped from an average of N1,000 per kilogramme in January and February this year to as high as N2,400 a few days ago.

ALSO READ: ‘Nigerian Marketers Import Dangote Fuel Via Lome Hub’

This is also because local producers of LPG have been unable to meet domestic demands for gas, according to operators. For example, the sources stated that there is a decline in LPG supply from the Dangote Petroleum Refinery and Petrochemicals (DPRP), due to internal utilisation, not because the refinery exports, as is being speculated.

The NUPRC data, however, indicate that Nigeria is yet to eliminate the long-standing practice. Despite the continued flaring, the commission noted in its May gas report that the country’s average daily gas production rose to 7.93 billion cubic feet per day, reflecting growth in upstream output.

According to the report, the May flare rate of 6.9 percent underscores Nigeria’s commitment to ending routine gas flaring by 2030.

The Federal Government has repeatedly pledged to end routine gas flaring as part of its climate commitments under the Paris Agreement and through the Nigerian Gas Flare Commercialisation Programme.

The programme seeks to convert previously flared gas into commercially viable products, including liquefied petroleum gas, compressed natural gas and feedstock for power generation and industrial applications.

In December 2025, the NUPRC announced the issuance of permits to successful bidders under the Nigerian Gas Flare Commercialisation Programme, with the projects expected to attract about $2bn in investments and generate thousands of jobs. The Commission said the initiative could capture between 250 million and 300 million standard cubic feet of gas daily that would otherwise have been flared.

Energy experts have long maintained that ending routine gas flaring would not only improve environmental outcomes but also enhance domestic energy security.

Gas flaring has been associated with greenhouse gas emissions and environmental degradation, particularly in host communities within the Niger Delta region.

The latest figures suggest that while Nigeria has made progress in reducing the proportion of gas flared compared to historical levels, the practice remains a major challenge in a country seeking to expand access to cleaner and more affordable energy sources.

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