Former President Olusegun Obasanjo has said that those benefiting from fuel importation will do all in their power to frustrate the Dangote Petroleum Refinery. In an interview with the Financial Times, the former President described the Dangote refinery as a project that should encourage both Nigerians and non-Nigerians.
“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 shared his opinion on the heels of recent allegations by the President of the Dangote Group, Aliko Dangote, that some government and non-government officials were making efforts to frustrate the $20bn refinery. Officials of the Dangote Group recently cried out that international oil companies were frustrating the refinery by refusing to sell crude or by selling to them at a premium up to $4 above the normal price.
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This prompted the Federal Executive Council’s directive to the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in naira and not in United States dollars. They also accused the Nigerian Midstream and Downstream Regulatory Authority of deliberately granting licenses to individuals to import dirty fuel.
The regulator denied this, saying Dangote diesel was inferior compared to the imported ones. The NMDPRA Chief Executive, Farouk Ahmed, also stated that the country would not stop fuel importation to avoid a monopoly by the Dangote Group.
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Dangote commenced operations at his behemoth facility located in Lagos last December with 350,000 barrels a day. The refinery hopes to achieve its full capacity of 650,000 barrels per day by the end of the year. The refinery has begun the supply of diesel and aviation fuel to marketers in the country, while petrol supply is expected to commence in August amid regulatory resistance.
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.
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“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 marveled 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.
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