Former President Olusegun Obasanjo has raised concerns about the potential challenges facing the Dangote Petroleum Refinery, highlighting that those benefiting from the current fuel importation system might try to thwart the refinery’s success.
Obasanjo’s comments come in response to allegations by Aliko Dangote, President of the Dangote Group, who has claimed that certain powerful groups are attempting to undermine the $20 billion refinery project.
Obasanjo, in an interview with Financial Times, praised the refinery’s potential impact, stating that it should inspire investment in Nigeria. He warned, however, that those profiting from fuel imports might resist changes brought by the new refinery.
“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 frustrated,” Obasanjo said.
Recent reports indicate that the Dangote refinery and other domestic refineries have not yet begun purchasing crude oil in naira, despite President Bola Tinubu’s directive to the Nigerian National Petroleum Company Limited (NNPC). Officials from the Dangote Group have accused international oil companies of obstructing the refinery by either refusing to sell crude or selling it at a premium, up to $4 above the normal price. Furthermore, they claim that the Nigerian Midstream and Downstream Regulatory Authority is granting licenses to individuals to import substandard fuel.
In response, the regulator denied the allegations, asserting that Dangote’s diesel quality is inferior to imported products. Farouk Ahmed, Chief Executive of the NMDPRA, stated that the country must continue importing fuel to avoid creating a monopoly with the Dangote Group.
Obasanjo also reflected on Nigeria’s economic strategy, criticizing the heavy reliance on oil and neglect of other sectors like gas and agriculture. “We put all our eggs in one basket of oil. We even ignored gas… We ignored agriculture, which should have been the centrepiece of our economic development,” he stated.
Obasanjo recounted his unsuccessful efforts to involve Shell in running the country’s refineries due to concerns about corruption and poor maintenance. He also criticized the manner in which the current administration removed fuel subsidies, urging consideration for the potential hardships caused by such actions.
The Crude Oil Refiners Association of Nigeria has confirmed that local refineries, including the Dangote refinery, have not received responses to their requests to purchase crude in naira. Eche Idoko, the association’s Publicity Secretary, emphasized the need for a regulatory framework to facilitate these transactions.
