Former President Olusegun Obasanjo has expressed concerns that those benefiting from Nigeria’s fuel importation system may try to undermine the success of the Dangote Petroleum Refinery.
In an interview with Financial Times, Obasanjo highlighted the significance of Aliko Dangote’s investment, emphasizing its potential to inspire further domestic and international investments in Nigeria. He warned that individuals profiting from the current importation arrangements might attempt to obstruct the refinery’s operations.
This statement comes in light of recent claims by Dangote Group’s President, Aliko Dangote, who accused certain officials of attempting to frustrate the $20 billion refinery project. Dangote’s group has faced challenges from international oil companies allegedly refusing to sell crude or offering it at a premium. In response, the Federal Executive Council directed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to the Dangote Refinery in naira instead of U.S. dollars.
Further complicating matters, the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) has been accused of issuing licenses for importing substandard fuel, which the regulator has denied, countering that Dangote’s diesel is inferior to imported fuel. The NMDPRA Chief Executive, Farouk Ahmed, argued against halting fuel importation to prevent Dangote Group from gaining a monopoly.
Dangote’s refinery, which began operations in Lagos last December, currently processes 350,000 barrels per day, with plans to reach its full capacity of 650,000 barrels per day by the end of the year. The refinery has started supplying diesel and aviation fuel domestically, with petrol distribution expected to commence in August.
Former Kano State Governor Rabiu Kwankwaso has also commented on the controversy, attributing it to vested interests and warning that such disputes could harm investor confidence in Nigeria’s economy. He urged support for the refinery, describing it as a vital asset for the country’s energy needs and economic stability, and stressed the importance of the government demonstrating fairness and confidence in both domestic and foreign investments.