Former President Olusegun Obasanjo has expressed concerns that individuals profiting from the lucrative fuel importation sector are likely to take measures to undermine the operations of the Dangote Petroleum Refinery.

This statement follows allegations made by Alhaji Aliko Dangote, President of the Dangote Group, regarding the existence of certain 'mafias' attempting to obstruct the $20 billion refinery project.

Additionally, it has been reported that as of Monday, the multi-billion dollar refinery, along with other domestic refineries, has not yet procured crude oil in naira, in accordance with President Bola Tinubu's directive to the Nigerian National Petroleum Company Limited.

In an interview with the Financial Times, the former President characterized the Dangote refinery as a venture that should inspire both Nigerians and non-Nigerians alike.

“Aliko’s investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria.

“If those who are selling or supplying refined products for Nigeria feel that they will lose the lucrative opportunity, they will also make every effort to get him frustrated,” Obasanjo stated.

Representatives of the Dangote Group have recently expressed concerns that international oil companies are hindering the operations of the refinery by either refusing to supply crude oil or by charging a premium of up to $4 above the standard market price.

They further alleged that the Nigerian Midstream and Downstream Regulatory Authority is intentionally issuing licenses to individuals for the importation of substandard fuel.

In response, the regulator refuted these claims, asserting that Dangote diesel is of inferior quality compared to imported alternatives.

Farouk Ahmed, the Chief Executive of NMDPRA, emphasized that the country would continue to allow fuel imports to prevent the Dangote Group from establishing a monopoly.

Additionally, Obasanjo remarked that Nigeria made a significant error by concentrating solely on oil, neglecting the potential of gas and agriculture.

“I believe we made a very, very deadly mistake. We put all our eggs in one basket of oil. We even ignored gas. We were flaring gas, which is a very important commodity

“We ignored agriculture, which should have been the centrepiece of our economic development,” Obasanjo stated.

He recounted his efforts to convince Shell to operate the nation’s refineries, however, the multinational oil corporation declined, citing excessive corruption within the industry.

“When I was President, I invited Shell and I said, look, come and take equity participation and run our refineries for us. They refused. They said our refineries have not been well maintained.

“We have brought amateurs rather than bringing professionals. They said there’s too much corruption with the way our refinery is run and maintained. And they didn’t want to get involved in such a mess,” he explained.

In light of the assurances provided regarding the imminent resolution of the refinery issues, he inquired…, “How many times have they told us that? And at what price?

“Those problems, as far as the government refineries are concerned, have never gone away. They have even increased. So if you have a problem like that and that problem is not removed then you aren’t going anywhere.”

The ex President also criticized the approach taken by President Bola Tinubu in eliminating fuel subsidies. He emphasized the need for the current administration to prioritize assessing the potential adverse effects of subsidy removal on the populace and developing strategies to mitigate these effects.

“There’s a lot of work that needs to be done. Not just wake up one morning and say you removed the subsidy. Because of inflation, the subsidy that we have removed is not gone. It has come back,” the former President stressed.

He emphasized the necessity of fostering investor confidence in Nigeria and went on to say that…, “You have to go from transactional economy to transformational economy.”

Obasanjo voiced his apprehension regarding the growing restlessness among the youth population, primarily attributed to the prevailing unemployment crisis. He cautioned that Nigeria could potentially find itself in a precarious situation, akin to sitting on a keg of gunpowder, if this issue remains unaddressed.

“Our youth are restive. And they are restive because they have no skill. They have no empowerment. They have no employment. We are all sitting on a keg of gunpowder. And my prayer is that we will do the right thing before it’s too late,” he warned.

Price of crude oil in naira

On Monday, it was reported that the Dangote refinery, along with other local refineries in Nigeria, has not yet commenced purchasing crude oil from the NNPC in naira, as mandated by President Tinubu.

The Crude Oil Refiners Association of Nigeria indicated that individual refiners have submitted letters to the NNPC requesting crude oil, but they have yet to receive any response.

Recently, the Federal Executive Council endorsed a proposal from Tinubu to facilitate the sale of crude oil to the Dangote refinery and other emerging refineries in naira.

The FEC has approved that the 450,000 barrels designated for domestic use be sold in naira to Nigerian refineries, with the Dangote refinery serving as a pilot project.

The exchange rate for this transaction will be fixed for its duration. However, nearly a week following the announcement, the refiners reported that they have not received any communication from the NNPC.

Eche Idoko, the Publicity Secretary of the Crude Oil Refiners Association of Nigeria, stated that the Nigerian Midstream and Downstream Petroleum Authority is anticipated to initiate the process.

“We have not started buying crude from NNPC. Individual members have written to them (NNPC) already, and they have several requests from these refineries before them.

“Typically, we would expect our regulator, in this instance, the NMDPRA, to kick start the process by calling for a meeting of all parties to discuss the framework for such supply or have NNPC respond to the various letters to it by the refineries requesting for crude,” Idoko noted.

The CORAN spokesperson previously asserted that supplying crude oil to domestic refineries in naira would reduce the cost of gasoline and strengthen the naira against the dollar.

Idoko praised Tinubu for heeding the advice of local refiners but emphasized the need for an executive order to enforce the new directive.

Additionally, the crude oil refiners requested a meeting with the economic team to determine a rate that would benefit the Nigerian market.

“Yes, we will see a rebound in the pricing of fuel once the President’s order is implemented. Mind you, the pronouncement alone is not enough. It must be with a force of law, either by executive order or by incorporating it into a new guideline so that the crude producers will be bound to sell to us in naira,” Idoko stated.

The Dangote refinery, along with other local refiners, has expressed concerns regarding the challenges they face in obtaining crude oil for their operations.

Recently, the management of Dangote Group asserted that International Oil Companies (IOCs) continue to hinder the supply of crude to their refinery, which has a capacity of 650,000 barrels.

In a statement, the group claimed that the IOCs are insisting on selling crude oil to the refinery through their foreign agents, resulting in a local price increase for crude, as the trading divisions are offering cargoes at prices ranging from $2 to $4 per barrel above the official rate set by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Furthermore, the group alleged that foreign oil producers appear to be favoring Asian markets for the sale of crude oil produced in Nigeria.

A senior official at the Dangote refinery, who requested anonymity due to a lack of authorization to comment, confirmed that the facility has not yet commenced purchasing crude in naira from the Nigerian National Petroleum Corporation (NNPC).

The spokesperson for NNPC, Olufemi Soneye, did not provide a response to inquiries regarding this issue when approached by our correspondent.