Economic Saboteurs: As cabals feasting on subsidy turn against Dangote Refinery
By Emmanuel Sixtus
Aliko Dangote, Africa’s wealthiest man and the driving force behind the Dangote Group, recently delivered a powerful message regarding the ongoing challenges faced by his refinery.
Speaking at the Afreximbank Annual Meetings in the Bahamas, Dangote did not hold back in his criticism of those he identified as economic saboteurs within Nigeria’s oil sector
When the announcement that Dangote would build a local refinery came out on the pages of local newspapers, Nigerians celebrated what they thought would be outright crash of price of refined petroleum products.
It took years for the refinery to be built, with the federal government of Nigeria playing a remarkable role in setting the refinery to a world-class standard.
Nigeria has a crude oil deposit, and with a refinery, it would be easier for Nigeria to meet the demands of the need of the citizens who rely on fuel to generate power.
Dangote’s refinery, one of the largest in the world, has faced significant hurdles in securing local crude oil supplies. According to Dangote, international oil companies (IOCs) have been deliberately frustrating the refinery’s operations by demanding exorbitant premiums above market prices, which has forced the refinery to import crude from distant countries like the United States, significantly increasing operational costs.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been working to allocate crude oil to the refinery, but these efforts are being undermined by the IOCs
Since inception, Nigeria has not been able to have a government owned refinery to aid and lower the cost of refining crude oil abroad.
There is no known reason refineries are not working in Nigeria, with each administration promising to work on building refinery, but the promises often fail to be fulfilled.
The reason for the failure of the government to build a refinery in the country is rumoured to be the agenda of some powerful elements in the system, who are responsible for oil theft and subsidy scheme in the country.
While the move is solely aimed to enable them to continue to steal from the government, the presidents have been accused of lacking determination and the political will to make the decision needed.
Despite breaking the barriers to finally building a private refinery, Dangote Refinery finds itself in an uncharted water. The company, having wriggled out of the chokehold of the elements within the system that have been fighting against local refineries, faces a strategic battle to function at maximum.
Edwin, a senior executive at Dangote Group, highlighted that the refinery has had to pay as much as $6 above the market price for crude, which has led to a reduction in output and increased dependence on imported crude.
The country’s crude oil deposit is enough for Dangote, but the powerful forces taking advantage of refining crude oil abroad are on a pushback. They have significantly raised the price of crude oil above the rate for the abroad buyers to frustrate the local refinery.
Dangote’s appeal to the Nigerian government is clear: he calls for stringent measures to protect the refinery from these economic saboteurs.
He emphasized that the refinery is not just a private venture but a national asset crucial for Nigeria’s economic stability and growth.
Dangote refinery functioning at its maximum would significantly lower the price of petroleum products across the country. This move will put to end the cabal that has been milking the country dry in the name of refining crude oil for the country.
The refinery has the potential to end Nigeria’s reliance on imported refined products, create jobs, and stimulate other sectors of the economy.
The implications of the refinery’s success are far-reaching. If the refinery operates at full capacity, it could significantly reduce Nigeria’s importation of refined petroleum products, thereby alleviating pressure on foreign exchange reserves and stabilizing the local currency.
This shift would also have a positive impact on inflation, particularly food inflation, which is heavily influenced by transportation costs linked to fuel prices.
The refinery’s challenges have sparked a wave of support from various quarters, including civil society groups and industry experts.
Many have called on the federal government to ensure the refinery receives the necessary support to overcome these obstacles. There is a consensus that the refinery’s success is vital for Nigeria’s economic health, and protecting it from sabotage is in the national interest.
“That is the problem this country is having. We don’t have patriots. Everybody is working for his own pocket. How could sensible people be hindering Dangote’s refinery from getting what it needs to excel? These politicians and those in power are insensitive to our peril. They don’t care about us, and we are dying. ” One person commented when asked about the situation by Dailytab24 correspondent.
Financial experts have also weighed in, suggesting that the Nigerian National Petroleum Company (NNPC) should leverage its 20% investment in the refinery to ensure a steady supply of crude oil. This support would not only benefit the refinery but also bolster the overall industrial sector, leading to increased production and economic recovery.
Dangote has been blamed in the press for his decision to import crude oil from the United States, but as it stands, it was not his making.
“We apologize to him, we thought he decided to jettison our crude oil for the United States own to enable him to sustain the skyrocketed price of petroleum products in the country. Now we know the cabals are the ones responsible for the condition, ” Wisdom Opara the convener of PIGGD said in reaction to the update.
In conclusion, Dangote’s refinery represents a critical turning point for Nigeria’s oil sector and broader economy. The call for national support against economic saboteurs is not just about protecting a single business but also for ensuring the economic future of the entire country.
As Dangote continues to navigate these challenges, the backing of the government and the people of Nigeria will be pivotal in securing a prosperous future for the nation.
But the fight will include upsetting the status quo. The government of Nigeria must choose between lowering the price of petroleum products and retaining the cabals frustrating the refinery.
