Former President Olusegun Obasanjo has expressed his belief that individuals profiting from the lucrative fuel importation business will try to hinder the success of the Dangote Petroleum Refinery.
Obasanjo’s comments came after allegations made by Aliko Dangote, the President of the Dangote Group, accusing ‘mafias’ of working against the $20bn refinery project.
In a recent interview with the Financial Times, Obasanjo praised the Dangote refinery as a venture that should attract investments from both Nigerians and non-Nigerians.
He warned that if current fuel suppliers fear losing their profit margins, they will likely put up obstacles to thwart Dangote’s efforts.
Obasanjo criticized Nigeria’s heavy reliance on oil as a major economic driver, neglecting the potential of gas and agriculture which could also drive development.
He recalled a failed attempt during his presidency to involve Shell in running the country’s refineries due to concerns over corruption and poor maintenance.
Obasanjo also questioned the abrupt removal of fuel subsidies without adequate planning for the social and economic impacts it could have on the population.
Expressing concern over rising youth unemployment leading to social unrest, he emphasized the urgency of taking appropriate action to prevent a crisis in the country.
Delayed Transition to Naira Payments for Crude Oil
The Dangote refinery and other local refineries in Nigeria are yet to begin purchasing crude oil from NNPC in naira, despite President Tinubu’s directive.
The delay in implementing the switch to naira payments for crude oil has caused frustration among the local refiners waiting for NNPC’s response to their requests for crude supply.
The move to sell crude in naira was approved to reduce petrol costs and stabilize the exchange rate against the dollar, but practical implementation is still pending.
Local refiners are urging the government to formalize the transition through executive orders or new guidelines to ensure compliance from crude producers.
Despite the challenges faced by Dangote and other domestic refiners in accessing crude oil, they remain committed to overcoming the obstacles blocking their operations.
Efforts continue to resolve the issues around crude oil supply to local refineries amidst claims of unfair practices by international oil companies and the need for regulatory intervention.
Queries regarding these developments directed to NNPC’s spokesperson, Olufemi Soneye, went unanswered at the time of reporting.