Dangote Promises Persistent Advocacy for $20 Billion Refinery Project Amidst Alleged Sabotage Attempts
Title: Aliko Dangote Continues His Battle Against Oil Cabal Over $20 Billion Refinery
In a bold stance at a recent investor forum in Lagos, Aliko Dangote, the head honcho of Dangote Group, reiterated his unwavering resolve to push through the obstacles plaguing the 650,000 barrels per day refinery in Lekki, Lagos - a project valued at a whopping $20 billion.
Dangote shared his concern about certain powerful individuals and groups attempting to derail his grand vision. These groups, who have amassed fortunes over the years from government-subsidised oil imports, are said to be vehemently opposed to the refinery's successful operation.
According to Dangote, these groups were benefiting significantly from the status quo, and the refinery's functioning would threaten their interests. He also claimed that these groups had backed efforts to resist the removal of petrol subsidies, a move that ultimately threatens their financial wellbeing.
"They can't stomach the refinery running smoothly in this country," Dangote asserted, expressing his confidence in the outcome despite the challenges. "I've been going toe-to-toe with adversity my whole life, and I'm ready to do it again. I'm one hundred percent certain I'll win in the end."
Dangote's Vice President of Oil and Gas, Devakumar Edwin, pointed fingers at international oil companies (IOCs) in Nigeria, accusing them of deliberately hiking the cost of crude oil and forcing Dangote's refinery to import it from foreign countries, thus hiking operational costs.
Edwin also criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for giving licenses to marketers to import substandard refined products, a move that may help maintain Nigeria's dependence on imported refined products while IOCs continue to benefit from exporting raw materials.
The refinery, which began petrol production in September 2024, aims to help reduce Nigeria's dependence on imported refined fuel. However, Dangote has repeatedly mentioned the efforts of powerful groups to thwart the project. He noted, "In a system where people have grown accustomed to counting good money, and all of a sudden, they see that the days of counting that money have come to an end, you can't expect them to cheer for you."
Amid the uproar, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has pledged its support for Dangote in his fight against the cabal. Chinedu Udadike, the association's Publicity Secretary, stated, "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's profit and loss."
On the flip side, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, advocated for a harmonious downstream industry. Gillis-Harry suggested that 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.
The refinery is viewed as a critical step toward Nigeria's self-sufficiency in refined products and 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. However, retailers have expressed concerns over their losses.
Sources:
- The Cable
- Premium Times
- ThisDay
- Vanguard Nigeria
- Punch Nigeria
Related articles you might like:
- Fuel Price War: Dangote Vs Major Players - In-depth analysis of the fuel price war between Dangote and major oil players in Nigeria.
- Subsidy Removal: A Double-Edged Sword For Nigerians - Exploring the effects of subsidy removal on Nigerian households and businesses.
- Dangote's Kingdom: The Magnate behind the Refinery - A closer look at Aliko Dangote's journey, business empire, and philanthropy.
- Nigeria's Refinery Blues: The Long Road to Self-Sufficiency - An overview of Nigeria's history and challenges in building local refining capacity.
- Oil Profiteers: The Powerful Vested Interests in Nigeria's Fuel Trade - Investigating the individuals and groups behind the seeming stranglehold on Nigeria's fuel market.
- Despite facing obstacles from powerful groups in Nigeria's oil industry, Aliko Dangote remains committed to the successful operation of his $20 billion refinery in Lagos, aiming to reduce Nigeria's dependency on imported refined fuel.
- The vice president of Dangote Group's Oil and Gas department, Devakumar Edwin, accused international oil companies in Nigeria of deliberately increasing the cost of crude oil, forcing Dangote's refinery to import it from foreign countries and raise operational costs.
- The Independent Petroleum Marketers Association of Nigeria (IPMAN) has pledged its support for Dangote in his battle against the oil cabal, acknowledging his price slashes even when it contradicts their business strategy and projections.
- The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, suggested that Dangote be allowed to refine products using the naira-for-crude deal, while giving importers and other traders a level playing field to operate, in an attempt to foster harmonious development in the downstream industry.


