Obasanjo Warns of Efforts to Frustrate Dangote Refinery by Fuel Importers.
Former President Olusegun Obasanjo has voiced concerns that those benefiting from Nigeria’s lucrative fuel importation business may attempt to frustrate the operations of the Dangote Petroleum Refinery, a $20 billion project owned by Africa’s richest man, Alhaji Aliko Dangote. Obasanjo’s comments come amidst allegations by Dangote that certain “mafias” are actively working against the success of his refinery.
In a recent interview with the Financial Times, Obasanjo described the Dangote refinery as a significant investment that should inspire confidence among both Nigerian and international investors. However, he warned that those who currently profit from Nigeria’s dependence on imported refined petroleum products may feel threatened and could take steps to undermine the refinery’s success.
“If those who are selling or supplying refined products for Nigeria feel that they will lose the lucrative opportunity, they will also make every effort to get him [Dangote] frustrated,” Obasanjo stated.
These concerns are echoed by officials from the Dangote Group, who have accused international oil companies (IOCs) of obstructing the refinery by either refusing to sell crude oil or charging a premium of up to $4 per barrel above the market rate. Additionally, the group has raised alarms about the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) allegedly issuing licenses for the importation of substandard fuel, an accusation the regulator has denied, asserting that Dangote’s diesel was of inferior quality compared to imported alternatives.
NMDPRA Chief Executive Farouk Ahmed also stated that Nigeria would not halt fuel importation to avoid creating a monopoly for the Dangote Group, further complicating the landscape for the new refinery.
Obasanjo reflected on Nigeria’s historical focus on oil, lamenting the country’s over-reliance on the sector to the detriment of other critical areas like gas and agriculture. “We put all our eggs in one basket of oil. We even ignored gas… and agriculture, which should have been the centerpiece of our economic development,” he remarked.
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The former President also criticized President Bola Tinubu’s approach to removing fuel subsidies, arguing that the administration should have considered the resulting economic hardship and devised strategies to mitigate its impact on the populace.
Meanwhile, efforts to implement a directive by President Tinubu that local refineries, including Dangote’s, should purchase crude oil from the Nigerian National Petroleum Company (NNPC) in naira have faced delays. The Crude Oil Refiners Association of Nigeria (CORAN) revealed that local refineries are still awaiting a response from the NNPC regarding their requests to buy crude under the new policy, which was designed to reduce fuel prices and strengthen the naira.
Despite these challenges, the Dangote refinery, with a capacity of 650,000 barrels per day, is seen as a potential game-changer for Nigeria’s oil sector, which has long struggled with inefficiencies and corruption in its state-run refineries.
As the situation unfolds, all eyes remain on how the refinery will navigate these obstacles and whether the government’s initiatives will be enough to support its success in a highly competitive and politically charged environment.
