Former President Olusegun Obasanjo has voiced concerns that individuals benefiting from Nigeria's fuel importation business may attempt to undermine the $20 billion Dangote Petroleum Refinery. Obasanjo's comments followed allegations by Alhaji Aliko Dangote, President of the Dangote Group, who claimed that 'mafias' were working to frustrate the refinery project.
In an interview with the Financial Times, Obasanjo emphasized that Dangote's investment should inspire both Nigerians and foreigners to invest in Nigeria. However, he warned that those profiting from the current fuel importation system might obstruct the refinery's success to protect their interests.
Dangote Group officials recently accused international oil companies (IOCs) of hindering the refinery by refusing to sell crude oil or demanding a premium of up to $4 above the standard price. They also alleged that the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) issued licenses for importing substandard fuel. The NMDPRA denied these claims, asserting that Dangote's diesel was inferior to imported products and stating that halting fuel imports would create a monopoly for the Dangote Group.
Obasanjo criticized Nigeria's historical reliance on oil, neglecting gas and agriculture. He recounted his unsuccessful efforts to have Shell manage Nigeria's refineries, citing corruption and poor maintenance as deterrents for the international oil company.
Regarding President Bola Tinubu's recent removal of fuel subsidies, Obasanjo argued that the government should have first addressed the potential hardships this could cause. He warned that Nigeria's youth, facing unemployment and lack of skills, are becoming increasingly restless, posing a significant risk to national stability.
Additionally, it was reported that the Dangote refinery and other local refineries had not yet started purchasing crude oil in naira, as directed by President Tinubu. The Crude Oil Refiners Association of Nigeria (CORAN) confirmed that requests for crude supply had been made to the Nigerian National Petroleum Company (NNPC), but there had been no response.
CORAN's Publicity Secretary, Eche Idoko, emphasized the need for regulatory action to facilitate the supply of crude oil in naira, which could reduce fuel costs and strengthen the naira against the dollar. Despite Tinubu's directive, an executive order or new guidelines are required to ensure compliance by crude producers.
