Former Nigerian President Olusegun Obasanjo has voiced significant concerns regarding the future of the Dangote Petroleum Refinery, following allegations of sabotage aimed at the ambitious $20 billion project.
Obasanjo’s remarks come in the wake of claims by Alhaji Aliko Dangote, President of the Dangote Group, who has accused certain ‘mafias’ of attempting to undermine his refinery venture.
In an interview with the Financial Times, Obasanjo suggested that the success of the Dangote Refinery could lead to increased investment from both domestic and international sources.
However, he expressed fears that those currently benefiting from Nigeria’s fuel importation sector might actively work to frustrate the project to protect their lucrative interests.
“Aliko’s investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria,” Obasanjo said.
“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.”
The Dangote Refinery, a critical project intended to reduce Nigeria’s dependence on imported fuel and improve the country’s refining capacity, has faced significant challenges since its inception.
The refinery, which is still in the early stages of operation, has not yet begun buying crude oil in naira, despite President Bola Tinubu’s directive for the Nigerian National Petroleum Company Limited (NNPC) to facilitate such transactions.
Officials from the Dangote Group have raised alarms about several obstacles impacting the refinery’s progress.
They allege that international oil companies are either refusing to sell crude oil or charging up to $4 above the standard price.
This has compounded issues for the refinery, which also faces allegations that the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) is issuing licenses for the importation of contaminated fuel.
The NMDPRA has denied these accusations, stating that Dangote’s diesel is of inferior quality compared to imported alternatives.
NMDPRA Chief Executive Farouk Ahmed also highlighted that the government would not halt fuel imports to prevent a monopoly by the Dangote Group.
Obasanjo’s critique extends beyond the immediate issues facing the Dangote Refinery.
He expressed regret over Nigeria’s historical focus on oil, to the detriment of other critical sectors such as gas and agriculture.
“I believe we made a very, very deadly mistake. We put all our eggs in one basket of oil. We even ignored gas.
“We were flaring gas, which is a very important commodity,” Obasanjo said.
He further criticised the government’s neglect of agriculture, which he believes should have been central to Nigeria’s economic development.
Reflecting on his presidency, Obasanjo recounted his attempts to involve Shell in managing Nigeria’s refineries.
Shell’s refusal was reportedly due to concerns over rampant corruption and poor maintenance of the refineries.
“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,” Obasanjo noted.
He criticized the handling of refineries under subsequent administrations, pointing to persistent issues and increasing problems despite promises of improvement.
Obasanjo also weighed in on President Bola Tinubu’s handling of fuel subsidies.
He criticized the administration’s abrupt removal of subsidies without sufficient consideration of the resulting hardships.
“There’s a lot of work that needs to be done. Not just wake up one morning and say you removed the subsidy,” Obasanjo argued.
He noted that despite the removal of subsidies, inflation has led to a resurgence of some of the challenges previously associated with subsidies.
The issues surrounding the Dangote Refinery are part of a broader narrative of Nigeria’s struggle with its oil sector.
Historically, Nigeria has been heavily reliant on imported refined petroleum products due to the poor performance of its domestic refineries.
Efforts to revitalize these refineries have frequently fallen short, leading to persistent fuel shortages and economic inefficiencies.
The Dangote Refinery, one of the largest single-train refineries in the world, represents a significant investment in Nigeria’s oil sector.
If successful, it could reduce the country’s dependence on fuel imports and create substantial economic benefits, including job creation and enhanced energy security.
However, the refinery’s success hinges on overcoming the myriad challenges it faces, including political and economic resistance from established interests in the fuel importation sector.
