Powerful elites in Nigeria will frustrate Dangote’s Refinery – Obasanjo
August 6, 2024.
By Samuel Ogunsona
The former Nigerian President, Olusegun Obasanjo, has expressed concern that some special interest groups who are currently benefiting from Nigeria’s fuel importation will obstruct the success of Dangote’s refinery.
In an interview with the Financial Times, Obasanjo said the $20 billion will no doubt boost the country’s economic growth if allowed to operate.
However, allegations by Alhaji Aliko Dangote, President of the Dangote Group, have accused some certain ‘mafias’ saying they are attempting to sabotage his $20 billion refinery project.
He said, “Aliko’s investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria.
“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.” He said.
The Dangote Group has raised concerns that international oil companies are sabotaging its refinery operations by withholding crude sales or inflating prices by up to $4 per barrel.
Additionally, the company alleges that the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) is issuing licenses for the importation of substandard fuel, further hindering their progress.
More so, the NMDPRA has refuted these claims, suggesting that Dangote’s diesel product falls short of international standards. CEO Farouk Ahmed emphasized that Nigeria will continue to import fuel to prevent a monopoly by the Dangote Group and ensure a competitive market.
The former President further established that Nigerian Governments concentration on oil is a big error, neglecting opportunities in gas and agriculture.
He said, “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
“We ignored agriculture, which should have been the centrepiece of our economic development,” Obasanjo stated.
He recalled attempting to persuade Shell to operate Nigeria’s refineries, but the company refused, citing excessive corruption in the sector.
“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. We brought amateurs instead of professionals. Then there was too much corruption with the way our refineries were maintained. They didn’t want to get involved in such a mess
“How many times have they told us that the refineries would be fixed, and at what price? Those problems as far as the government refineries are concerned have never gone. They have even increased. And if you have such problems, and the problems have not been removed, then, it means we are not going anywhere.”
The former president also criticized President Bola Tinubu’s approach to removing fuel subsidies, arguing that the administration should have first considered the potential hardships and ways to alleviate them.
“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 stressed.