Why fuel importers will frustrate Dangote – Obasanjo
Former President Olusegun Obasanjo has said that those benefiting from the lucrative business of fuel importation will go any length to frustrate the Dangote Petroleum Refinery.
Obasanjo stated this in the wake of allegations by the President of the Dangote Group, Alhaji Aliko Dangote, that some ‘mafias’ were making efforts to frustrate the $20bn refinery.
This came as it was gathered on Monday that the multi-billion dollar refinery and other domestic refineries had yet to purchase crude oil in naira as directed by President Bola Tinubu to the Nigerian National Petroleum Company Limited.
In an interview with Financial Times, the former President described the Dangote refinery as something that should encourage both Nigerians and non-Nigerians.
“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 said.
Officials of the Dangote Group recently raised the alarm that international oil companies were frustrating the refinery by refusing to sell crude or by selling to them at a premium up to $4 above the normal price.
They also accused the Nigerian midstream and downstream petroleum regulatory authority. ( NMDPRA) of deliberately granting licences to individuals to import dirty fuel.
READ ALSO: Dangote Refinery: For love of country, beyond profit and passion, by Zainab Suleiman Okino
The regulator denied this, saying Dangote diesel was inferior when compared to the imported ones.
The NMDPRA Chief Executive, Farouk Ahmed, also stated that the country would not stop fuel importation to avoid a monopoly by the Dangote Group.
Obasanjo, speaking further, disclosed that Nigeria made a deadly mistake by putting all its eggs in what he called one basket of oil, ignoring 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,” Obasanjo stated.
He recalled how he persuaded Shell to run the country’s refineries but the international oil company refused, saying there was too much corruption in the sector.
“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.
On the promises that the refineries will be fixed, he asked, “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,” Obasanjo said.
The former President also condemned the style adopted by President Bola Tinubu to remove fuel subsidies, stating that the present administration should have first considered the hardship the subsidy removal could cause people and how to ameliorate the same.
“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,” the former president stressed.
He said there must be investor confidence in Nigeria, adding, “You have to go from transactional economy to transformational economy.”
“Our youths 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.
It was also gathered on Monday that the Dangote Refinery and other local refineries in Nigeria had yet to start buying crude oil from NNPC in naira as directed by President Tinubu.
The Crude Oil Refiners Association of Nigeria said letters have been written to NNPC by individual refiners requesting crude, but there has been no response yet.
The Federal Executive Council recently adopted a proposal by Tinubu to sell crude to the Dangote Refinery and other upcoming refineries in naira.
FEC approved that the 450,000 barrels meant for domestic consumption be offered in naira to Nigerian refineries, using the Dangote Refinery as a pilot. The exchange rate will be fixed for the duration of this transaction.
However, almost one week after the announcement, the refiners said they had not heard from the NNPC.
Proofreading, editing by Uji A Iliyasu, Editor at Neptune Prime.
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