F ormer President Olusegun Obasanjo has raised concerns that those profiting from fuel importation in Nigeria may attempt to undermine the Dangote Petroleum Refinery. This follows allegations by Alhaji Aliko Dangote, President of the Dangote Group, that certain "mafias" are working to sabotage the $20 billion refinery.
The Dangote refinery and other domestic refineries are yet to purchase crude oil in naira, as directed by President Bola Tinubu to the Nigerian National Petroleum Company Limited (NNPC). Obasanjo, in an interview, highlighted the importance of the refinery as a positive investment that should inspire further investments in Nigeria.
"Aliko’s investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria. 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 stated.
Officials from the Dangote Group have reported that international oil companies (IOCs) are frustrating the refinery's operations by either refusing to sell crude or selling at a premium of up to $4 above the normal price. The Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) has been accused of granting licenses for the importation of substandard fuel, a claim it denies, arguing that Dangote diesel is inferior to imported alternatives.
NMDPRA Chief Executive, Farouk Ahmed, emphasized that the country would not halt fuel importation to avoid creating a monopoly for the Dangote Group.
Obasanjo criticized Nigeria's heavy reliance on oil while neglecting other critical sectors like gas and agriculture. He recounted his efforts to involve Shell in managing the country's refineries, which were rebuffed due to concerns about corruption and poor maintenance.
On the topic of fuel subsidies, Obasanjo condemned President Tinubu's approach to subsidy removal, stressing the need for measures to mitigate the resulting hardships.
“There’s a lot of work that needs to be done. Not just wake up one morning and say you removed the subsidy. Because of inflation, the subsidy that we have removed is not gone. It has come back,” he said.
Obasanjo also expressed concerns about youth restiveness due to unemployment, warning that Nigeria might be sitting on a "keg of gunpowder."
Meanwhile, it has been revealed that the Dangote refinery and other local refineries have not yet commenced purchasing crude oil from NNPC in naira. The Crude Oil Refiners Association of Nigeria (CORAN) indicated that individual refiners have written to NNPC, but there has been no response.
The Federal Executive Council recently approved a proposal for selling 450,000 barrels meant for domestic consumption in naira to Nigerian refineries, with the Dangote refinery as a pilot. However, this has not yet been implemented.
Eche Idoko, the Publicity Secretary of CORAN, noted that supplying crude oil to local refineries in naira could reduce fuel costs and strengthen the naira against the dollar. Idoko called for an executive order to enforce this new directive.
Despite these challenges, the management of the Dangote Group has continued to report difficulties in accessing crude oil, alleging that IOCs prioritize selling to Asian markets and demand higher prices.
A senior official at the Dangote refinery confirmed that the plant had not started buying crude in naira from NNPC. The NNPC spokesperson did not respond to inquiries on the matter.
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