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Why fuel importers would disappoint Dangote: Obasanjo

By: Adisa Deborah

Former President Olusegun Obasanjo has accused petroleum importation businesses of seeking to sabotage the Dangote Petroleum Refinery, after charges made by President Alhaji Aliko Dangote. The $20 billion refinery has yet to purchase crude oil in Nigeria, despite President Bola Tinubu’s directive. Obasanjo feels that the refinery should attract investment from Nigerians and non-Nigerians and that international oil firms are hindering the refinery by refusing to sell crude or selling at a premium.

 

Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), has accused the regulator of issuing licenses to individuals who import unclean fuel. However, Ahmed rejects this and argues that the country will not halt fuel imports to prevent the Dangote Group from monopolizing the market. Nigeria’s President, Olusegun Obasanjo, criticized the country’s emphasis on oil and gas, pointing out the country’s inability to prioritize agriculture and infrastructure. The International Oil Company refused to run Nigeria’s refineries owing to corruption.

 

Obasanjo, Nigeria’s former President, expressed concern about the country’s refineries and the continuous issues they face. He questioned President Bola Tinubu’s strategy to remove fuel subsidies, claiming that the elimination was ineffective and that the subsidies had reappeared owing to inflation. Obasanjo also underlined the importance of investor confidence and a transformative economy, cautioning against Nigeria’s youth unrest due to unemployment and gunpowder. He encouraged Nigeria to act before it was too late.

 

The Crude Oil Refiners Association of Nigeria (CORAN) has voiced concern that Nigerian refineries have failed to begin buying crude oil from the Nigerian National Petroleum Corporation (NNPC) in naira, as directed by President Tinubu. The group has received letters demanding crude from specific refiners but has gotten no responses. The Federal Executive Council approved 450,000 barrels for domestic use to be provided in naira to Nigerian refineries, with the Dangote plant as a pilot. The NNPC is anticipated to start the process, with refineries requesting a meeting with the economic team to negotiate an appropriate tariff.

 

The NNPC, led by Idoko, is carrying out a President’s order to increase fuel prices. However, domestic refiners, including the Dangote refinery, are having difficulty acquiring crude oil. Dangote Group argues that IOCs are limiting crude supplies by insisting on selling through foreign agents. The group also accused international oil producers of preferring Asian markets while selling crude in Nigeria. Olufemi Soneye, the NNPC spokeswoman, has not responded to requests.