Aliko Dangote, the wealthiest man in Africa, has requested that Nigeria suspend diesel and aviation fuel imports, Farouk Ahmed, the head of the Nigerian Midstream and Downstream Regulatory Agency, told reporters.
“That is not good for the nation in terms of energy security and that is not good for markets in terms of monopoly,” he said.
Ahmed added that this action is damaging to the energy security and market competition of the West African country. Dangote's 650,000 barrel-per-day refinery near Lagos has been in operation since January, producing aviation fuel, naphtha, and diesel.
The Nigerian gasoline marketing group chastised the regulator for allowing high-sulfur diesel production domestically while prohibiting imports, thereby benefiting Dangote, the Western media reported in turn.
Imported diesel must have a sulfur concentration of 50 parts per million, whereas domestic output can range from 650 to 1,200 ppm.
High-sulfur fuels can damage engines and harm the environment, making them prohibited in several parts of the world.
According to the Depot and Petroleum Products Marketers Association of Nigeria, which was cited by the media, "this is a clear adoption of Dangote Oil Refinery as the sole supplier of automotive gas oil to the nation" with reference to diesel.
“This situation is detrimental not only to the downstream operators but to the nation at large,” it added.