Former President Olusegun Obasanjo has warned that those profiting from fuel importation will likely try to undermine the Dangote Petroleum Refinery. This statement comes in response to allegations by Aliko Dangote, President of the Dangote Group, about efforts by certain "mafias" to sabotage the $20 billion refinery project.
In an interview with the Financial Times, Obasanjo highlighted the significance of the Dangote refinery, describing it as a venture that should inspire investment in Nigeria from both locals and foreigners. “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.
Officials from the Dangote Group have recently complained that international oil companies are hindering the refinery by refusing to sell crude oil or by selling it at a premium of up to $6 above the normal price. They also accused the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) of issuing licenses to import substandard fuel. The NMDPRA denied these claims, arguing that Dangote diesel is inferior compared to imported products. NMDPRA Chief Executive Farouk Ahmed stated that the country would continue importing fuel to prevent a monopoly by the Dangote Group.
Obasanjo further criticized Nigeria's heavy reliance on oil, neglecting gas and agriculture. "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 centerpiece of our economic development," he said.
Reflecting on his presidency, Obasanjo recounted how he invited Shell to manage the country’s refineries, but the company declined due to the sector's corruption and poor maintenance. “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.
Obasanjo questioned the repeated promises to fix government refineries, noting that the problems have only worsened. “How many times have they told us that? And at what price? 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,” he said.
He also criticized President Bola Tinubu’s approach to removing fuel subsidies, arguing that the government should have considered the potential hardship and ways to mitigate it. “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,” Obasanjo stressed.
Obasanjo emphasized the need for investor confidence in Nigeria, advocating for a shift from a transactional to a transformational economy. He also expressed concern over youth unrest due to unemployment, warning that Nigeria might be sitting on a "keg of gunpowder." “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.
