Fuel Importers Will Stop at Nothing to Frustrate Dangote — Obasanjo

Olusegun Obasanjo

Obasanjo: Fuel Cartels Will Sabotage Dangote Refinery

Dangote's refinery faces Sabotage from Fuel Profiteers says  Obasanjo...

Former President Obasanjo warns of sabotage against Dangote Refinery, criticizes Nigeria's reliance on oil, and faults President Tinubu's subsidy removal approach, citing concerns about corruption, unemployment, and economic development.

Former President Olusegun Obasanjo has warned that individuals benefiting from the lucrative fuel importation business may attempt to hinder the progress of the Dangote Petroleum Refinery. His statement comes after Alhaji Aliko Dangote, President of the Dangote Group, alleged that certain groups were trying to sabotage the $20 billion refinery project.

It has been reported that, as of Monday, August 5, the Dangote refinery and other domestic refineries have yet to commence purchasing crude oil in naira, despite President Bola Tinubu's directive to the Nigerian National Petroleum Company Limited (NNPCL) to do so.

Obasanjo commended the Dangote refinery, hailing it as a remarkable achievement that should be a source of pride for Nigerians and a model for others globally.

“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.

The Dangote Group has raised concerns that international oil companies are sabotaging their refinery by either withholding crude oil sales or charging exorbitant prices, up to $4 above market rate. Additionally, they accused the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) of issuing licenses to import substandard fuel, further undermining their efforts.

The NMDPRA has refuted these allegations, countering that the Dangote Group's diesel product falls short of the quality standards of imported diesel. Farouk Ahmed, Chief Executive of NMDPRA, emphasized that the country will not suspend fuel imports to accommodate the Dangote Group's interests, citing concerns about monopolistic practices.

"I believe we made a very, very deadly mistake. We put all our eggs in one basket of oil. We even ignored gas. We were flaring gas, which is a very important commodity.

“We ignored agriculture, which should have been the centrepiece of our economic development,” Obasanjo stated.

Obasanjo recounted how he had tried to persuade Shell to run the country's refineries, only to be rebuffed due to the company's concerns about widespread corruption in the sector.

“When I was President, I invited Shell and I said, look, come and take equity participation and run our refineries for us. They refused. They said our refineries have not been well maintained.

“We have brought amateurs rather than bringing professionals. They said there's too much corruption with the way our refinery is run and maintained. And they didn't want to get involved in such a mess,” he explained.

He questioned the repeated assurances, saying, “How many times have we heard that the refineries will be repaired? And what's the real price tag?”

“Those problems, as far as the government refineries are concerned, have never gone away. They have even increased. So if you have a problem like that and that problem is not removed then you aren't going anywhere.”

“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,” the former President stressed.

He said there must be investor confidence in Nigeria, adding, “You have to go from transactional economy to transformational economy.“

Obasanjo chastised President Tinubu's subsidy removal strategy, arguing that the government ought to have prioritized understanding the potential hardships and developing countermeasures before taking action.

“Our youth are restive. And they are restive because they have no skill. They have no empowerment. They have no employment. We are all sitting on a keg of gunpowder. And my prayer is that we will do the right thing before it's too late,” he warned.

Former President Obasanjo voiced concern about the growing discontent among young people due to joblessness, warning that Nigeria may be teetering on the edge of a significant crisis.