Fuel Importers May Undermine Dangote’s $20 Billion Refinery, Obasanjo Predicts, Cites Reasons

Former President Olusegun Obasanjo has warned that entrenched interests in the fuel importation sector are likely to attempt to undermine the Dangote Petroleum Refinery. This statement follows allegations by Alhaji Aliko Dangote, President of Dangote Group, that certain ‘mafias’ are trying to sabotage the $20 billion refinery project.

Obasanjo expressed his concerns in an interview with the Financial Times, where he praised Dangote’s investment in the refinery as a potential catalyst for encouraging both domestic and foreign investment in Nigeria. However, he predicted resistance from those who benefit from the current importation system.

Recent reports reveal that neither the Dangote refinery nor other domestic refineries have begun purchasing crude oil in naira, as directed by President Bola Tinubu. The Crude Oil Refiners Association of Nigeria has indicated that despite several requests to the Nigerian National Petroleum Company Limited (NNPC), there has been no progress.

Obasanjo criticized past governance for focusing too heavily on oil, neglecting other vital sectors like gas and agriculture. He recounted efforts to involve Shell in managing Nigeria’s refineries, which failed due to concerns about corruption and mismanagement.

The former President also expressed disappointment with the current administration’s approach to removing fuel subsidies, suggesting it lacked consideration for the resulting economic hardship. He stressed the need for a shift from a transactional to a transformational economy to build investor confidence.