Former President Olusegun Obasanjo claims cabals in Nigeria's oil and gas sector are obstructing the $20 billion Dangote Refinery to protect their profits from refined petrol imports. The refinery, essential for Nigeria's energy independence, faces challenges in securing crude oil supplies amid accusations and economic implications.
In a recent interview with the Financial Times, former Nigerian President Olusegun Obasanjo asserted that powerful cabals within Nigeria’s oil and gas sector are deliberately frustrating the progress of the $20 billion Dangote Refinery. Obasanjo suggested that these groups are benefiting from the importation of refined petroleum products and are thus opposed to the success of the Dangote Refinery, which aims to significantly reduce Nigeria’s reliance on imported fuel.
The Dangote Refinery, led by billionaire industrialist Aliko Dangote, has faced numerous challenges, particularly in securing a steady supply of crude oil.
Obasanjo emphasized the broader economic implications of the refinery, stating, “Aliko’s investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria.” He pointed out that those currently profiting from selling refined products to Nigeria perceive the refinery as a threat to their lucrative business and are thus actively working to obstruct its progress. “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 added.
Devakumar Edwin, Vice President of Dangote Industries, has also raised concerns about international oil companies allegedly selling crude oil at inflated prices to the refinery, further complicating its operations. This issue was highlighted amidst accusations from the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s Chief Executive Officer, Farouk Ahmed, who suggested that Dangote was exhibiting monopolistic tendencies—accusations that Dangote has vehemently denied.
As the Dangote Refinery navigates these obstacles, its success remains critical for Nigeria's energy independence and economic growth. The refinery’s completion would not only ensure a steady supply of refined petroleum products for the country but also catalyze further domestic and international investments in Nigeria’s energy sector. However, overcoming the entrenched interests of powerful cabals and international oil companies remains a significant challenge.
