Former President Olusegun Obasanjo has expressed concerns about potential efforts to undermine the Dangote Petroleum Refinery, spearheaded by individuals benefiting from Nigeria’s lucrative fuel importation business.
These remarks were made in the
context of allegations by Alhaji Aliko Dangote, President of the Dangote Group,
who claimed that certain 'mafias' are attempting to sabotage the $20 billion
refinery project.
During an interview with the Financial Times, Obasanjo lauded Dangote's refinery as a significant investment that should inspire both local and international confidence in Nigeria’s economic potential.
However, he noted that those profiting from the status quo
of refined product imports might resist this change to protect their interests.
"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 also reflected on
Nigeria’s historical economic missteps, emphasizing the nation's over-reliance
on oil while neglecting other vital sectors such as gas and agriculture. He
recounted his attempts to involve Shell in managing Nigeria's refineries during
his presidency, which the oil company declined due to concerns over corruption and
poor maintenance practices.
Meanwhile, the Dangote Group
has recently raised alarms over the obstacles posed by international oil
companies (IOCs). The group accused these companies of either refusing to sell
crude oil to the refinery or charging a premium price of up to $4 above the norm.
Furthermore, they alleged that the Nigerian Midstream and Downstream Regulatory
Authority (NMDPRA) has been complicit by granting licenses for importing
substandard fuel, a claim the regulator has denied, citing the alleged inferiority
of Dangote's diesel.
NMDPRA Chief Executive, Farouk
Ahmed, defended the authority’s actions, stressing that Nigeria must continue
fuel importation to prevent a monopoly by the Dangote Group.
Adding to the complexity, there
has been no progress on the directive from President Bola Tinubu for the
Nigerian National Petroleum Company Limited (NNPC) to sell crude oil in naira
to domestic refineries, including the Dangote facility. The Crude Oil Refiners
Association of Nigeria (CORAN) has reported that despite writing to the NNPC requesting
crude supplies, they have yet to receive a response.
This delay follows the Federal
Executive Council's recent approval to sell 450,000 barrels of crude oil meant
for domestic consumption in naira, using the Dangote refinery as a pilot
project. The aim is to stabilize petrol prices and strengthen the naira against
the dollar.
Eche Idoko, Publicity Secretary
of CORAN, has urged for immediate action, suggesting that an executive order
might be necessary to enforce this directive. He noted, “Yes, we will see a
rebound in the pricing of fuel once the President’s order is implemented. It
must be with a force of law, either by executive order or by incorporating it
into a new guideline so that the crude producers will be bound to sell to us in
naira.”
Obasanjo also criticized
President Tinubu’s approach to removing fuel subsidies, suggesting that the
administration should have considered the potential hardships on citizens and
sought ways to mitigate these impacts. "There’s a lot of work that needs
to be done. Not just wake up one morning and say you removed the subsidy,"
Obasanjo emphasized, pointing out the inflationary pressures that have followed
the subsidy removal.
Furthermore, the former
President voiced concerns about youth unemployment and restiveness, warning
that Nigeria is at risk of significant social unrest if these issues are not
addressed. “Our youth are restive because they have no skill. They have no
empowerment. They have no employment. We are all sitting on a keg of
gunpowder,” he cautioned.
The Dangote refinery and other
local refiners continue to face significant challenges in securing crude oil,
which hampers their operations and threatens to undermine the broader goals of
Nigeria’s economic diversification and industrial growth. The success of these
initiatives is crucial for reducing Nigeria’s dependence on fuel imports and
fostering a more self-sufficient economy.
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