Fuel importers will frustrate Dangote refinery — Obasanjo

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Former President Olusegun Obasanjo has asserted that those profiting from fuel importation will likely attempt to undermine the Dangote Petroleum Refinery.

In an interview with the Financial Times, he emphasized that the Dangote refinery is a project that should inspire both Nigerians and international observers.

“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,” Obasanjo stated.

Obasanjo expressed his views following recent claims by Aliko Dangote, President of the Dangote Group, alleging that both government and non-government officials were attempting to undermine the $20 billion refinery project.

Dangote Group officials recently reported that international oil companies were obstructing the refinery’s progress by either refusing to sell crude oil or charging a premium of up to $4 per barrel above the standard price.

In response, the Federal Executive Council directed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to the Dangote Refinery and other local refineries in Nigerian naira rather than US dollars.

The Dangote Group also accused the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) of intentionally issuing licenses to importers of substandard fuel. The NMDPRA refuted these claims, stating that Dangote’s diesel was inferior compared to the imported alternatives.

NMDPRA Chief Executive Farouk Ahmed further clarified that the country would continue fuel imports to prevent monopolistic practices by the Dangote Group.

Since its launch last December, the Lagos-based refinery has been operating at 350,000 barrels per day, with plans to reach its full capacity of 650,000 barrels per day by the end of the year. The facility has already started supplying diesel and aviation fuel to local marketers, with petrol supply expected to begin in August despite ongoing regulatory challenges.

Kwankwaso Blames Dangote Refinery Saga On Vested Interests

In the wake of the controversies, former Kano State Governor, Rabiu Kwankwaso, while weighing in on the disagreement, blamed the saga on vested interests.

Reacting via his X handle, Kwankwaso blamed what he described as ‘unnecessary fuss’ on vested interests, saying it could damage investor confidence in the Nigerian economy.

“The creation of unnecessary fuss around its integrity by some vested interests is very unfortunate, and it stands to undo all the years of hard work to maintain the fragile investor confidence in our economy,” he said.

The presidential candidate of the New Nigeria People’s Party (NNPP) in the 2023 general elections described Dangote’s refinery as a crucial asset for the nation’s energy needs and economic stability.

He also stressed the importance of protecting the asset from any threats that could undermine its operations.

“I was privileged to visit the magnificent Dangote Refinery, and I was marvelled by the sheer commitment that went into the quality of its establishment,

“It’s time for us to rally around this National Asset to ensure that the monumental project does not fail. It cannot fail, and the Nigerian government must understand this by demonstrating fairness and confidence in both domestic and foreign critical investments,” he stated.