Dealers in petroleum products may frustrate Dangote Refinery — Obasanjo

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9 months ago

Olusegun Obasanjo

Former President Olusegun Obasanjo has said that those who sell or supply refined products and feel they will lose the lucrative business will do everything possible to frustrate the Dangote Petroleum Refinery.

Also, he disclosed that the petrol subsidy removed by the Federal Government in 2023 has been reintroduced because of inflation.

The former President who stated this in an interview with Financial Times, 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 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.

Former President Obasanjo’s view is coming a few weeks after the President of the Dangote Group, Aliko Dangote alleged that some government and non-government officials were trying to frustrate the $20 billion refinery.

The Dangote Group officials recently alleged that international oil companies were frustrating operations of the refinery by refusing to either sell crude or selling to them at a premium up to $4 above the normal price.

Also, they accused the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) of deliberately granting licences to individuals to import dirty fuel.

The regulator denied this and said Dangote diesel was inferior compared to the imported ones.

Farouk Ahmed, NMDPRA Chief Executive also allegedly stated that the country would not stop fuel importation to avoid a monopoly by the Dangote Group.

The allegations informed the decision of the Federal Executive Council’s directive to the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery and other local refineries in Naira.

Dangote began operations at his facility in Lagos last December with 350,000 barrels per day and hopes to achieve its full capacity of 650,000 barrels per day by the end of the year.

Already, the refinery has started the supply of diesel and aviation fuel to marketers in the country while petrol supply is expected to commence this month.

Also, Obasanjo who faulted how the government removed the subsidy, said the authority ought to have implemented some measures to mitigate the unintended consequences of its action before subsidy removal, and explained that the subsidy has “come back” due to the inflation rate.

Obasanjo said, “There’s a lot of work that needs to be done. Not just wake up one morning and say you removed the subsidy. Because of inflation, the subsidy that we have removed is not gone. It has come back”.

Highlighting the need for investor confidence in Nigeria, Obasanjo stated, “You have to go from a transactional economy to a transformational economy.”

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