Former President Olusegun Obasanjo has raised concerns that individuals benefiting from the lucrative fuel importation business in Nigeria will attempt to sabotage the Dangote Petroleum Refinery.
This statement follows allegations by Alhaji Aliko Dangote, President of the Dangote Group, who claimed that certain ‘mafias’ are working to undermine his $20 billion refinery project.
The refinery, which has the potential to significantly reduce Nigeria’s dependence on imported fuel, has yet to begin purchasing crude oil in naira, despite directives from President Bola Tinubu to the Nigerian National Petroleum Company Limited (NNPC).
This development underscores the challenges facing the refinery as it seeks to commence full operations.
In an interview with the Financial Times, Obasanjo lauded the Dangote refinery as a significant investment that should inspire confidence among both Nigerian and international investors.
However, he cautioned that those profiting from the current importation system would likely resist the refinery’s success.
“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.
Obasanjo said reports indicate that international oil companies are frustrating the Dangote refinery by either refusing to sell crude or by selling it at a premium, sometimes as high as $4 above the standard price.
Also, the Dangote Group has accused the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) of granting licences for the importation of substandard fuel.
The regulator, however, refuted these claims, asserting that Dangote diesel was inferior to imported alternatives.
NMDPRA Chief Executive, Farouk Ahmed, stated that the country would not halt fuel importation to prevent a monopoly by the Dangote Group.
This regulatory stance highlights the ongoing tensions within Nigeria’s fuel market.
Obasanjo further criticised Nigeria’s historical reliance on oil, arguing that the country made a grave error by neglecting other sectors such as gas and agriculture.
“We put all our eggs in one basket of oil. We even ignored gas. We were flaring gas, which is a very important commodity. We ignored agriculture, which should have been the centerpiece of our economic development,” he lamented.
Recalling his presidency, Obasanjo shared how he had unsuccessfully urged Shell to manage Nigeria’s refineries.
The international oil company declined, citing poor maintenance practices and widespread corruption within the sector.
“When I was President, I invited Shell and I said, look, come and take equity participation and run our refineries for us. They refused. They said our refineries have not been well maintained. We have brought amateurs rather than professionals.
“They said there’s too much corruption with the way our refinery is run and maintained. And they didn’t want to get involved in such a mess,” he explained.
Obasanjo also criticised President Tinubu’s approach to removing fuel subsidies, arguing that the administration should have first addressed the potential hardships on the population.
“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 noted.
The former president stressed the need for investor confidence in Nigeria, advocating a shift from a transactional to a transformational economy.
He also voiced concerns about youth unemployment and restiveness, warning that Nigeria is “sitting on a keg of gunpowder.”
“Our youth are restive. And they are restive because they have no skill. They have no empowerment. They have no employment. We are all sitting on a keg of gunpowder. And my prayer is that we will do the right thing before it’s too late,” Obasanjo cautioned.
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