The President of Dangote Group, Aliko Dangote, has reaffirmed his determination to continue fighting for the survival of his $20 billion refinery, emphasising that the battle is far from over.
In a statement during an investor forum in Lagos on Friday, Dangote expressed his resolve to overcome the obstacles facing the 650,000 barrels per day refinery situated in Lekki, Lagos.
The refinery has been subjected to various challenges, with Dangote blaming certain powerful individuals and groups for attempting to sabotage the project.
Dangote highlighted that these groups, who have profited for years from government-subsidised oil imports into Nigeria, were opposed to the functioning of his refinery.
He further claimed that these groups had funded efforts to resist President Bola Tinubu’s removal of petrol subsidies, which he said posed a threat to their financial interests.
“They are opposed to the refinery operating easily in the country,” Dangote said, but he remained confident in his ability to win the ongoing struggle.
“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,” he added.
Despite the challenges, Dangote expressed optimism about the future of the refinery, stating that he would not back down.
“We’ll get there,” he assured, reflecting on his firm belief in the refinery’s importance not just for Nigeria but for the sub-region and the entire continent of Sub-Saharan Africa.
The refinery, which began petrol production in September 2024, is expected to help reduce Nigeria’s reliance on costly imported refined fuel. However, Dangote has repeatedly mentioned the efforts of powerful groups to thwart the project.
He noted, “In a system where, for 35 years, people are used to counting good money, and all of a sudden, they see that the days of counting that money have come to an end, you don’t expect them to pray for you.”
Further complicating matters, Dangote’s Vice President of Oil and Gas, Devakumar Edwin, accused international oil companies (IOCs) in Nigeria of deliberately frustrating the refinery’s ability to purchase local crude.
He claimed that the IOCs were hiking the cost of crude oil, thereby forcing Dangote’s refinery to import it from other countries, increasing operational costs.
Edwin also criticised the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for indiscriminately granting licenses to marketers to import substandard refined products.
This, he said, is part of an effort to maintain Nigeria’s dependence on imported refined products while IOCs continue to benefit from exporting raw materials.
Dangote’s refinery is viewed as a critical step toward Nigeria’s self-sufficiency in refined products, reducing its reliance on costly imports.
Despite the hurdles, the refinery’s entry into the market has already had a positive impact, pushing down the pump prices of refined products, although retailers have expressed concerns over their losses.
IPMAN Supports Dangote
Naijaonpoint reports that the Independent Petroleum Marketers Association of Nigeria (IPMAN) have expressed their support for Dangote as he pushes ahead to fight the cabal.
The Publicity Secretary of the association, Chinedu Udadike, said Dangote had promised before that he would fight the so-called cabal for the good of the masses, stressing that the association is behind him.
He said the fight is just the usual competition in any business, especially when a product performs better than others in the market.
“Well, this is business. Competition abounds. There is no businessman whom people will not fight if he is doing well, especially when it is only your goods that are being produced, and the others are not being patronised because of the price. So, it is evident that every businessman wants to survive. It’s not an issue. What we can do is encourage him.
“We independent marketers are happy with him for his price slashes, although sometimes it’s against our own business strategy and projections. But that is part of the business, it is profit and loss.
“You know the factor of demand and supply matter determines the market. So, if he’s talking about how people want to sabotage him, he has told us that he’s ready to fight the oil cabals, and he is in this business to ensure that Nigerians don’t suffer. So, we encourage him not to lose hope, and we independent marketers support him in all ramifications,” Ukadike said.
PETROAN Speaks Against Fight
The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry in a chat with Punch, said there should be no form of discord in the downstream.
According to him, Dangote should be allowed to refine its products with the naira-for-crude deal while importers and other traders should be given a level playing field to operate.
Gillis-Harry noted that there should be facts to back up all claims, saying there will be competition in any business, pleading that it should be healthy.
He appealed to the federal government to supply enough crude oil to Dangote and other refineries.
Asked whether he felt the temporary stoppage of the naira-for-crude deal by the Nigerian National Petroleum Company Limited could have prompted Dangote’s comment, he replied that there was a need to review the pilot phase of the deal, emphasising that PETROAN was always in support of the naira petrol sales deal, which he said would make petroleum products available for all Nigerians.
He stressed that other refineries are coming onstream and there will be more competitors in the market.
“I just want all players to do their business without any fight,” the PETROAN boss said.