Former President Olusegun Obasanjo has indicated that those profiting from the lucrative fuel importation sector are likely to try to sabotage the operations of the Dangote Petroleum Refinery. This assertion follows claims made by Alhaji Aliko Dangote, the President of the Dangote Group, who alleged that certain ‘mafias’ were actively working to undermine the $20 billion refinery project.
Reports have emerged indicating that the multi-billion dollar refinery, along with other domestic refineries, has yet to secure crude oil in naira, despite a directive from President Bola Tinubu to the Nigerian National Petroleum Company Limited. This situation raises concerns about the refinery’s operational viability and its ability to contribute to Nigeria’s energy needs.
In an interview with the Financial Times, Obasanjo characterized the Dangote refinery as a significant opportunity that should motivate both Nigerian and foreign investors to consider investing in Nigeria. He emphasized that successful investment in such a refinery could serve as a catalyst for broader economic growth.
Obasanjo pointed out that individuals and entities currently engaged in the sale and supply of refined products may perceive the Dangote refinery as a threat to their profitable ventures. Consequently, they might resort to various tactics to obstruct its progress, fearing a loss of their lucrative market.
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Officials from the Dangote Group have voiced their frustrations, claiming that international oil companies are hindering the refinery’s operations. They allege that these companies are either refusing to sell crude oil or are charging a premium of up to $4 above the standard price, complicating the refinery’s efforts to source necessary materials.
Additionally, the Dangote officials have accused the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) of deliberately issuing licenses to individuals for importing substandard fuel. This accusation raises questions about regulatory oversight and the integrity of the fuel supply chain in Nigeria.
In response to these claims, the NMDPRA has denied any wrongdoing, asserting that Dangote diesel is inferior when compared to imported alternatives. This rebuttal highlights the ongoing tensions between local refineries and international oil suppliers, as well as the challenges faced by domestic producers.
Farouk Ahmed, the Chief Executive of the NMDPRA, further stated that the country would not cease fuel importation to avoid creating a monopoly for the Dangote Group. This position reflects a broader concern about market competition and the need to maintain a diverse fuel supply landscape.
Obasanjo elaborated on Nigeria’s energy strategy, suggesting that the nation made a critical error by overly depending on oil while neglecting other sectors like gas and agriculture. He lamented that this singular focus has led to missed opportunities for diversification and sustainable economic growth.
In his closing remarks, Obasanjo reiterated the importance of a balanced approach to resource management, advocating for investments in both gas and agriculture to complement the oil sector. He believes that a more diversified economic strategy could help Nigeria avoid similar pitfalls in the future and foster a more resilient economy.
