At a recent investment event in Lagos, Africa’s richest man, Aliko Dangote, made it clear that the fight to protect his $23 billion oil refinery project from entrenched interests in Nigeria’s oil sector is far from over.
Dangote, speaking candidly, said powerful groups who have long benefited from government subsidies on imported petroleum are determined to sabotage the Dangote Refinery’s operations, particularly after the Bola Tinubu administration’s removal of petrol subsidies.
“Those groups have funded resistance to the Bola Tinubu government’s removal of petrol subsidies and are opposed to the refinery operating easily in the country,” Dangote stated.
Despite these challenges, the billionaire industrialist expressed full confidence in his ability to prevail. “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,” Dangote declared.
Widely known for his risk-taking, Dangote admitted that even among his many business ventures, the massive refinery project stands out as his boldest and most difficult undertaking.
Built on a sprawling 6,200-acre site in the Lekki Free Zone, the Dangote Refinery is the world’s largest single-train refinery.
Although it officially commenced operations in 2023 after more than a decade of development, the refinery’s biggest challenges only surfaced after launch, exposing the tangled power dynamics within Nigeria’s oil market. One of Dangote’s most visible clashes has been with the Nigerian National Petroleum Corporation (NNPC).
Initially, NNPC offered to invest $1 billion for a 20% stake in the refinery, but that deal was later scaled back to 7%, with attempts to reclaim part of the funds previously deposited.Beyond ownership, the refinery also faced complications in sourcing crude oil.
At first, it was required to purchase crude in US dollars, increasing operational costs.This hurdle was temporarily eased by the introduction of the Naira-for-Crude initiative, which allowed crude purchases in Nigeria’s local currency for six months.
However, the program was subsequently suspended, then later revived, reflecting the fluid and often unpredictable nature of the Nigerian oil sector. Dangote has been outspoken in condemning the forces aligned against him, describing them bluntly as part of the country’s “oil mafia.”
In a February interview with Forbes, Dangote said, “The oil mafia is more deadly than the one in drugs because, with the oil mafia, there are so many people that are involved. I’ve been fighting battles all my life, and I have not lost one yet. You might be wining and dining with them, but these are the guys that are the masters of moving things around.”
Despite these tensions, Dangote has received notable backing from the Independent Petroleum Marketers Association of Nigeria (IPMAN). Chinedu Udadike, IPMAN’s Publicity Secretary, acknowledged the competitive nature of the market but affirmed the group’s support.
“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,” Udadike said.
He added, “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 factors of demand and supply determine 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.”
