Business

Dangote Battles Oil Cabals Trying to Sabotage $20bn Refinery

Aliko Dangote, President of the Dangote Group, says he is still fighting powerful oil import cabals determined to frustrate his $20 billion refinery project in Lagos. Speaking at an investor forum in Lagos, Dangote said these groups—who have profited from government-subsidised fuel imports—are doing everything possible to sabotage the operations of his 650,000-barrel-per-day refinery.

He described the opposition as a long-running battle against individuals who are not happy with the government’s removal of fuel subsidies and the success of his refinery. Dangote remained confident, saying, “I’ve been fighting all my life, and I am 100% sure I will win.”

The refinery, located in Lekki, started petrol production in September 2024 and has been seen as a solution to Nigeria’s reliance on fuel imports. It has also driven down fuel prices in Nigeria. However, Dangote claims some international oil companies (IOCs) are deliberately denying his refinery crude oil supply or selling at inflated prices to sabotage the project.

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He alleged that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is granting licenses to marketers to import substandard petroleum products, which has also created challenges for his refinery.

Dangote’s team, including Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries, accused IOCs of forcing the refinery to import crude from distant countries like the US, adding to costs. Edwin warned that the goal of these companies is to keep Nigeria dependent on imported fuel and keep their profits intact.

Despite this, Dangote said he won’t back down. “Some of these people have been making easy money for 35 years. Of course, they won’t be happy now that it’s ending. But we’ll get there,” he said.

Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has thrown its support behind Dangote. Its Publicity Secretary, Chinedu Ukadike, said Dangote’s efforts to lower prices are appreciated, even if they affect some businesses negatively. He stressed that competition is part of the business world and encouraged Dangote to stay strong.

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On the other hand, Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), called for peace in the downstream sector. He believes all stakeholders should be given equal opportunities and urged the government to continue supplying crude to local refineries, including Dangote’s.

The naira-for-crude policy introduced by President Bola Tinubu allowed Dangote’s refinery to purchase crude oil using naira. This helped bring down petrol prices from about N1,100 per litre to N860. However, importers now say they’re losing money, as buyers prefer Dangote’s cheaper fuel.

Still, Dangote remains focused. He said the refinery will help not just Nigeria but all of sub-Saharan Africa. While he admitted the fight is ongoing, he promised the refinery would soon reach full capacity.

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