Africa’s richest man, Aliko Dangote, has accused powerful players in the petroleum sector of trying to frustrate his $20 billion refinery, vowing that the project will not be destroyed by vested interests.
Speaking in Lagos on Monday at the launch of compressed natural gas (CNG)-powered trucks for direct fuel distribution, the Dangote Group President compared the situation to Nigeria’s textile industry, which collapsed under pressure from entrenched interests.
“The past year has been a very rough journey, I must confess. It wasn’t easy because we came in to change the narratives. We came in to change the system of how things have been done in the downstream. We have people who are used to rent collection. We have people who believe we have taken food from their tables,” Dangote said.
He alleged that both international traders and local marketers have conspired to weaken local refining because they profit more from fuel importation.
“The international traders and the local marketers all connive to suffocate any refinery,” he warned.
His comments come amid disputes with major oil trade groups. The Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) recently shut depots after claiming the refinery blocked its drivers from joining the union. The Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) also accused the refinery of distorting the market by selling petrol to foreign buyers at lower prices.
Dangote denied the allegations, explaining that price adjustments were necessary for survival.
“Sometimes we export a little bit cheaper than what we sell domestically, not because we want to, but because we were being suffocated. We are charged premiums on crude, competing with subsidised Russian products, and the only way to keep the refinery running was to sell at lower margins,” he explained.
He said Nigerians are already benefiting because the refinery keeps petrol prices lower under the naira-for-crude arrangement.
“People don’t know that we’re actually sacrificing a lot because the crude we buy through the naira-for-crude deal cannot be exported. We are required to process it and supply locally. At a point, we were even paying a $6 premium to Brent when Russian crude was going for $20,” he disclosed.
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Dangote also revealed that 85 per cent of petrol consumed in Benin Republic is smuggled from Nigeria, worsening challenges in the sector.
Responding to claims that the refinery lacks capacity, he said it exported 1.6 billion litres of petrol between June and August alone.
“DAPPMAN said we don’t have the capacity. If that’s the case, then how are we exporting this volume? The dumping process is massive, and it is similar to how they destroyed textiles. But we will not allow them to kill this $20bn investment,” he vowed.
Highlighting the economic benefits, Dangote said the refinery can meet Nigeria’s petrol needs while creating thousands of jobs.
“The newly deployed trucks alone will create about 24,000 jobs, with drivers earning three times the national minimum wage,” he added.