Oil Import Mafia Still Fighting Back, Says Dangote

Africa’s richest man and President of the Dangote Group, Aliko Dangote, has raised fresh concerns over continued resistance to the operations of his \$20 billion refinery, blaming entrenched interests for attempting to sabotage the facility’s progress. Speaking at an investor forum in Lagos, Dangote said powerful groups who benefited from decades of government-subsidised fuel imports are still actively working against the 650,000 barrels-per-day refinery in Lekki.

According to a report by Semafor, Dangote alleged that these individuals are backing opposition to President Bola Tinubu’s subsidy removal policies and are determined to prevent the refinery from functioning effectively. Despite these challenges, Dangote remains confident, declaring, “We’re fighting, and the fight is not yet finished. But I have been fighting all my life, and I am ready and 100 per cent sure I will win at the end of the day.”

The refinery, which began petrol production in September 2024, was designed to reduce Nigeria’s dependency on imported refined fuels. However, Dangote has repeatedly accused international oil companies (IOCs) of undermining the refinery’s ability to operate, including by inflating local crude prices and forcing the plant to import crude from countries like the United States. He has also criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly issuing licenses to marketers to bring in substandard fuel.

Dangote previously admitted regretting the refinery project due to the fierce resistance from what he described as oil industry mafias, likening their strength to drug cartels. Nevertheless, he insisted that the refinery remains essential for Nigeria and sub-Saharan Africa, and that the opposition is only temporary.

His position was reinforced by Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries, who accused IOCs of frustrating the refinery’s ability to access domestic crude and claimed that their goal is to keep Nigeria dependent on imported refined fuel to benefit their home economies.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has thrown its support behind Dangote. IPMAN’s Publicity Secretary, Chinedu Ukadike, acknowledged that market competition can lead to resistance but praised Dangote’s commitment to reducing fuel prices, even if it affects some local businesses. He urged the billionaire to remain focused, describing the situation as a normal feature of competitive business.

On the other hand, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) called for calm, stating that all players should be given a level playing field. PETROAN President, Billy Gillis-Harry, advocated for healthy competition, urging the government to ensure adequate crude supply to all domestic refineries. He also backed the continuation of the naira-for-crude deal, which he believes is key to stabilising fuel prices in the country.

That deal, introduced by the Tinubu administration, allowed Dangote’s refinery to purchase crude in naira, leading to a drop in petrol prices from around N1,100 to N860 per litre. While this has been welcomed by consumers, fuel importers have complained about mounting losses, unable to match the refinery’s pricing.