Former President Olusegun Obasanjo has expressed concerns that those benefiting from the lucrative fuel importation business are likely to attempt to hinder the progress of the Dangote Petroleum Refinery.
This comes in the wake of allegations by the President of the Dangote Group, Alhaji Aliko Dangote, that certain ‘mafias’ are making efforts to frustrate the $20 billion refinery.
In an interview with Financial Times, Obasanjo emphasized the potential positive impact of the refinery, stating, “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.”
The Dangote Group has accused international oil companies of refusing to sell crude to the refinery or selling it at a premium of up to $4 above the normal price. Additionally, they alleged that the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) has been granting licenses to individuals to import substandard fuel. The NMDPRA denied these claims, asserting that Dangote’s diesel is inferior compared to imported fuel.
Obasanjo also reflected on Nigeria’s economic strategies, criticizing the nation’s heavy reliance on oil while 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 centrepiece of our economic development,” he said.
Recounting his tenure as President, Obasanjo shared his failed attempt to involve Shell in running Nigeria’s refineries.
“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 also criticized President Bola Tinubu’s approach to removing fuel subsidies, stating, “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.”
Addressing broader economic and social issues, Obasanjo emphasized the need for investor confidence and warned about youth unemployment.
“You have to go from transactional economy to transformational economy,” he said, adding, “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.”