Dangote Refinery is the victim, not the bully in oil sector battle — Mumuni

A renowned security expert and chieftain of the All Progressives Congress (APC), Ambassador Abayomi Nurain Mumuni, has come to the defence of Dangote Refinery, arguing that the multi-billion-dollar facility is being unfairly portrayed as a monopolist. 

According to him, the refinery is not the aggressor, but rather a victim under siege by entrenched interests in Nigeria’s oil sector.

In a statement issued on Wednesday and signed by his media aide, Rasheed Abubakar, Mumuni recalled how, last year, major petroleum marketers reportedly refused to patronise the refinery, fearing that its transparent pricing model could expose systemic inefficiencies and threaten their profit margins.

He also criticised the Nigerian National Petroleum Company (NNPC) for failing to fulfil its commitment to acquire a 20 per cent equity stake in the refinery through crude oil supply.

Mumuni said: “When Dangote begged for local crude, they refused. He had to turn to the US and the Middle East for crude, in a country that produces oil.

“Facing resistance from the establishment, the refinery took matters into its own hands. It partnered with MRS Oil, owned by Sayyu Dantata, to retail its products and has acquired over 4,000 tankers to distribute fuel directly to filling stations nationwide, with plans to double the fleet to 10,000.

“This model, which includes free delivery, effectively bypasses traditional marketers, a move critics have labelled monopolistic, but it is a necessary defensive strategy.

“If you invested over $20 billion, most of it borrowed, would you sit idle and allow cartels to destroy your business?

“To ease tensions, the refinery reportedly offered marketers a deal: a bulk purchase arrangement of 500,000 litres paid in cash, with an additional 500,000 litres on credit. Yet disputes persist. Marketers are now demanding that Dangote’s tanker drivers join their union, a proposal that was firmly rejected by Sayyu Dantata during negotiations.”

Mumuni also drew attention to broader issues affecting fuel distribution in Nigeria, particularly extortion at checkpoints.

“Between Olounda and Randa in Ogun State alone, there are over 50 checkpoints where tanker drivers are forced to part with cash or fuel. Dangote’s entry may finally break this cycle,” he said.

Referencing a recent television appearance by energy analyst Dan Kunle, who defended Dangote Refinery and described the opposition from petroleum marketers as “anti-national,” Mumuni said he shared the sentiment entirely.

“These remarks shed more light on the ongoing standoff between Dangote Refinery and vested interests in the downstream sector. Because of its location in the Free Trade Zone, the refinery is technically offshore. Dangote ferrying products directly to end users is more than a business decision, it’s a public service.

“One thing is certain: Dangote is not the bully in this battle. It is fighting for survival against a system determined to preserve the status quo,” he said.

He called on entrepreneurs and investors to embrace opportunities to partner with the refinery, rather than getting caught up in what he described as a “rat race.”

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