In a recent statement, Former President Olusegun Obasanjo has highlighted the likelihood that those benefiting from the profitable fuel importation sector will attempt to hinder the Dangote Petroleum Refinery. This comes in response to claims by Dangote Group President Alhaji Aliko Dangote, who has accused certain ‘mafias’ of working to obstruct the $20 billion refinery project.
Obasanjo’s remarks follow reports that the Dangote refinery and other local refineries have not yet begun purchasing crude oil in naira, as directed by President Bola Tinubu.
In an interview with Financial Times, Obasanjo praised the potential of the Dangote refinery to stimulate both Nigerian and international investment. He suggested that the obstruction is driven by fears of losing lucrative opportunities in the fuel importation market.
Obasanjo also criticized the management of Nigeria’s refineries, recalling his efforts to involve Shell in refinery operations, which were rejected due to concerns about corruption and mismanagement. He expressed doubt about the government’s repeated promises to address these issues, noting that the problems have persisted and even worsened.
Further, Obasanjo condemned President Tinubu’s approach to subsidy removal, arguing that it neglected to address the resulting economic hardships and inflation. He emphasized the need for a shift from a transactional to a transformational economy to restore investor confidence and tackle rising youth unemployment.
On the issue of crude oil purchases, reports indicate that local refineries, including Dangote’s, have not yet started buying crude in naira. The Crude Oil Refiners Association of Nigeria (CORAN) has noted that despite requests, NNPC has not yet responded. The Federal Executive Council’s recent approval to sell crude in naira to domestic refineries, with Dangote’s as a pilot, has not yet been implemented.
CORAN’s Publicity Secretary, Eche Idoko, has called for formal action by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and an executive order to enforce this policy. This move is expected to help reduce fuel costs and strengthen the naira.
Dangote Group has alleged that international oil companies are obstructing crude supply by selling at a premium and prioritizing exports to Asia. A senior Dangote refinery official confirmed that the refinery has not yet begun purchasing crude in naira from NNPC. The NNPC spokesperson has not responded to inquiries on this matter.
