Former Nigerian President Olusegun Obasanjo has raised alarm over an alleged cabal within the country aiming to thwart the operations of the Dangote Refinery.
This assertion follows accusations by Aliko Dangote, President of the Dangote Group, who claimed that certain ‘mafias’ are attempting to undermine his $20 billion refinery project.
Obasanjo expressed concerns that those benefiting from Nigeria’s lucrative fuel importation sector might work to frustrate the refinery’s success. He also criticized President Bola Tinubu’s abrupt removal of the fuel subsidy, which he argued triggered inflation and subsequently forced the government to reintroduce the subsidy.
In an interview with the Financial Times, Obasanjo suggested that the success of the Dangote Refinery could stimulate both local and foreign investments in Nigeria. “Aliko’s investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria,” he said. He warned that those who profit from supplying refined products to Nigeria might attempt to sabotage Dangote’s efforts.
Officials from the Dangote Group have voiced concerns that international oil companies are obstructing the refinery by either refusing to sell crude oil or charging exorbitant prices. Additionally, they accused the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) of issuing licenses for importing contaminated fuel to undermine the refinery’s operations. The NMDPRA denied these claims, asserting that Dangote’s diesel was inferior to imported alternatives. NMDPRA Chief Executive Farouk Ahmed also emphasized that Nigeria would not cease fuel importation to avoid creating a monopoly for the Dangote Group.
Obasanjo reflected on Nigeria’s economic strategies, criticizing the country’s reliance on oil while neglecting gas and agriculture. “We put all our eggs in one basket of oil. We even ignored gas… We ignored agriculture, which should have been the centerpiece of our economic development,” he lamented.
He recounted his efforts to involve Shell in managing Nigeria’s refineries during his presidency, which were declined due to the perceived corruption and poor maintenance of the facilities. “When I was president, I invited Shell to come and take equity and run our refineries for us. They refused and said our refineries were not well maintained… There was too much corruption with the way our refineries were maintained,” Obasanjo stated.
The former president also criticized President Tinubu’s approach to removing fuel subsidies without adequate measures to mitigate the resulting economic 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,” Obasanjo noted.
Obasanjo’s remarks underscore the complex challenges facing Nigeria’s energy sector and the potential obstacles to the Dangote Refinery’s success amid ongoing economic and political tensions.
