Reports say that on Tuesday, the Nigerian Government announced its intention to grant Dangote Refinery a fully valid operating license.
This announcement was made during the Stakeholders’ Consultation Forum on Midstream and Petroleum Host Community Development Trust Regulations, organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
While the NMDPRA, a Federal Government agency, confirmed that it had previously awarded a pre-commissioning license to the $20 billion refinery, it clarified that a fully valid operating license would soon be issued to the Dangote refinery.
Dangote refinery, inaugurated by former President Muhammadu Buhari in May 2023, commenced the distribution of Automotive Gas Oil, commonly known as diesel, to the domestic market in April of this year. However, it has yet to commence the distribution of Premium Motor Spirit, commonly known as petrol.
Speaking at the forum in Abuja on Tuesday, the Chief Executive of NMDPRA, Farouk Ahmed, assured industry players and stakeholders that the authority would soon issue a fully valid operating license to the refinery. Ahmed, represented by Ogbugo Ukoha, the Executive Director of Distribution Systems, Storage, and Retailing Infrastructure at NMDPRA, highlighted that presently, only three refineries hold valid licenses.
“We have issued three refineries with three valid licences. We awarded to Dangote refinery even in their pre-commissioning and sooner than later they will have full commission and a valid licence to also operate,” he stated.
According to the Director-General of NMDPRA, there are approximately 15 gas facilities across the country that possess valid licenses, while many more are currently undergoing the processing stage. Additionally, there are 1,199 downstream facilities with valid licenses, and over 176 operators who hold gas import permits. The Director-General further stated that there are 130 licensed depots and 69 valid coastal vessel licenses. As of 10 am on April 30, 2024, NMDPRA has licensed 9,464 retail outlets.
“In the gas processing facility within the midstream, there are about 15 of them with valid licences. And much is under processing. If you go to the downstream sector, in the gas state of the downstream, more than 1,199 facilities have NMDPRA valid licences.
“More than 176 operators hold gas import permits. In the liquid licensing side of the downstream, there are 130 depots with valid licences and coastal vessels of more than 69 valid licences as of today. And in the retail outlets, we have 9,464 licensed retail outlets as of 10 am today, April 30,” Ahmed stated.
Ahmed said the authority organised the forum for stakeholders to vent their ideas and proffer measures that would further enable the NMDPRA to relate better with host communities in the mid and downstream arms of the oil sector.
He explained why locations within the midstream and downstream sectors of the oil industry were included as part of host communities, stressing that emissions and effluence from these areas significantly impact them.
He highlighted that the authority convened the forum to provide a platform for stakeholders to express their thoughts and suggest measures that would enhance the NMDPRA’s engagement with host communities in both the midstream and downstream sectors of the oil industry.
