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Oil producing communities threaten to seal pipelines over poor treatment of Dangote

The Dangote refinery recently came under attack from the national regulators over claims that it is producing diesel of inferior quality.
Aliko Dangote's refinery project has the capacity to produce 650,000 barrels per day. [Nairametrics]
Aliko Dangote's refinery project has the capacity to produce 650,000 barrels per day. [Nairametrics]

The Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) have threatened to shut down pipeline facilities in their domains if the Nigerian National Petroleum Corporation (NNPC) Limited and the International Oil Companies (IOCs) fail to sell and supply crude oil to Dangote and other local refineries.

The threat comes amid the ongoing face-off between the Chief Executive Officer (CEO) of Dangote Refinery and Chairman of Dangote Industry Limited (DIL), Aliko Dangote and the Nigerian oil regulators.

Recall that the business mogul was publicly accused by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of trying to monopolise the downstream of the Nigerian petroleum sector.

NMDPRA also alleged that the Dangote Refinery hasn't been licensed to sell refined petroleum products, adding that the diesel being churned out from the multi-billion dollar facility is of inferior quality.

This came after DIL accused the oil regulators and IOCs of doing everything to sabotage its efforts to get crude supply to the refinery.

HOSTCOM threatens NNPC and IOCs

During a tour of the Dangote Refinery located in the Ibeju Lekki area of Lagos State during the weekend, HOSTCOM said it will renew agitation for greater autonomy and control of their natural resources if regulators continue their hostile attitude towards Dangote.

The group, comprising all the states producing oil and gas in Nigeria, was led on the tour by its National President, Dr. Benjamin Tamaramiebi.

It lamented that despite the billions of dollars spent on turnaround maintenance of Nigeria's refineries, the country remains reliant on importing refined products.

It argued that the persistence issue highlights the widespread corruption within Nigeria's oil and gas industry, allegedly orchestrated by influential cabals who are 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.

"It is obvious why the existing Federal Government Refinery in Port Harcourt, Warri and Kaduna can never work or operate maximally despite the billions of dollars spent on the 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 sector by the jugular. We have identified them, and we shall reveal their names to the people of Nigeria if this trend continues,” he said.

While emphasising the need for Nigeria to refine its crude locally, HOSTCOM urged the Federal Government to back the Dangote Petroleum Refinery and Petrochemicals and other domestic refineries to end the nation's persistent reliance on imported petrol, diesel, and other refined products.

The group's President also called for nationwide support for Dangote and other modular refineries to eliminate the need for imported refined products.

It expressed gratitude to the National Assembly and Nigerians but warned against any 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 at HOSTCOM have come today to drum up support for Dangote Refinery. We will stand with Dangote to put an end to continuous importation of less quality and costly refined petroleum products into Nigeria," stated the group.

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