Former President Olusegun Obasanjo has expressed concerns about the efforts by vested interests in the fuel importation sector to undermine the Dangote Petroleum Refinery. Speaking to the Financial Times, Obasanjo highlighted the importance of the $20 billion refinery project spearheaded by Aliko Dangote and its potential to inspire both local and international investments in Nigeria.
Obasanjo remarked, “Aliko’s investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria.” However, he warned, “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.”
This warning comes amid allegations from Dangote that both government and non-government officials are attempting to sabotage the refinery. The Dangote Group has accused international oil companies of either refusing to sell crude or selling it at inflated prices, up to $4 above the standard rate.
In response, the Federal Executive Council has instructed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in naira instead of U.S. dollars.
Additionally, the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) has faced criticism for allegedly granting licenses to import substandard fuel. The regulator defended its actions, claiming Dangote’s diesel is inferior to imported versions and emphasized the necessity of preventing a monopoly.
Despite these challenges, the Dangote Refinery, which began operations in Lagos last December, has started supplying diesel and aviation fuel. The refinery aims to reach its full capacity of 650,000 barrels per day by year-end, with petrol supply expected to commence in August, despite ongoing regulatory resistance.
