Former President Olusegun Obasanjo has expressed concerns that those benefiting from the fuel importation business might attempt to obstruct the Dangote Petroleum Refinery. His comments follow allegations from Alhaji Aliko Dangote, President of the Dangote Group, that certain “mafias” are trying to undermine the $20 billion refinery project.
Obasanjo’s remarks came in the wake of reports that the refinery and other domestic refineries have not yet begun purchasing crude oil in naira, as per a directive from President Bola Tinubu to the Nigerian National Petroleum Company Limited (NNPC).
In an interview with the Financial Times, Obasanjo emphasized the significance of the Dangote refinery, noting that it should encourage both Nigerian and international investors. He suggested that those involved in selling or supplying refined products might be motivated to sabotage the refinery due to fears of losing profitable opportunities.
Recent complaints from the Dangote Group highlight difficulties with acquiring crude oil. The group alleges that international oil companies are frustrating their efforts by refusing to sell crude or charging a premium of up to $4 per barrel above the normal price. They have also accused the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) of issuing licenses for the importation of substandard fuel.
The NMDPRA has denied these allegations, asserting that Dangote’s diesel is inferior to imported alternatives. Farouk Ahmed, Chief Executive of NMDPRA, also stated that halting fuel importation could create a monopoly, which the regulator aims to avoid.
Obasanjo criticized the Nigerian government’s handling of its refineries, recounting his efforts to persuade Shell to manage them. Shell declined, citing issues with corruption and poor maintenance of the refineries. Obasanjo questioned the government’s repeated promises to fix the refineries and criticized the subsidy removal approach taken by President Tinubu, suggesting that the potential impacts on the populace were not adequately considered.
Obasanjo also voiced concerns about youth unemployment and restiveness, warning that Nigeria might face significant unrest if these issues are not addressed.
Meanwhile, the Crude Oil Refiners Association of Nigeria reported on Monday that local refineries, including Dangote’s, have not yet begun buying crude in naira as directed by the Federal Executive Council. The directive was part of a proposal to sell domestic crude to refineries in naira, with the Dangote refinery as a pilot project. The association has noted a lack of response from NNPC despite requests from refiners.
The Publicity Secretary of the Crude Oil Refiners Association, Eche Idoko, urged for an executive order to enforce the new directive, emphasizing that such a move would help reduce petrol costs and strengthen the naira.
Dangote Group has alleged that international oil companies are prioritizing Asian markets and selling crude at inflated prices. A senior official at the Dangote refinery confirmed that the plant has yet to start purchasing crude in naira from NNPC. NNPC spokesperson Olufemi Soneye did not respond to inquiries on the matter.
The situation underscores ongoing challenges in Nigeria’s oil sector and highlights the broader issues affecting domestic refineries and the national economy.
