On Monday, Nigerian legislators initiated an investigation into the reported importation of contaminated fuel into the country, aiming to address conflicts between Aliko Dangote’s oil refinery and the regulatory authority.
Ikenga Ugochinyere, the committee chairman, stated that the probe is examining allegations of “unregulated issuance of licenses and the purported lack of international standard laboratories” linked to the polluted fuel in Abuja.
Aliko Dangote, President/CEO of Dangote Industries Limited, defended his actions, saying, “If I knew what we are going to get into, I wouldn’t have even started it at all… and that is why right from the beginning we launched 31 projects, all concurrently… but we are in the middle of the sea, if we stop swimming we sink, the only option is just to continue swimming no matter how tired you are.”
The committee urged stakeholders in Nigeria’s petroleum sector to reduce the heightened tensions following allegations from the regulator that Dangote was attempting to monopolize the market and that his refinery’s products were substandard.
Dangote claimed that the oil industry mafia is more dangerous than the drug trade mafia, noting that while drug trade opponents are known, the oil mafia operates covertly both internally and externally, potentially with insider support.
Dangote also criticized the persistent fuel shortages in Nigeria since 1972, describing it as a national disgrace.
The Lagos-based refinery, the largest in Africa with a capacity of 650,000 barrels per day, has faced a slow start since opening over a year ago, despite being touted as a game-changer by officials. Challenges in sourcing local crude oil have forced the refinery to rely on imports, highlighting Nigeria’s issues with oil theft and corruption.
Devakumar Edwin, a vice-president of Dangote Industries, alleged that international oil companies in Nigeria are conspiring to undermine the refinery by either demanding exorbitant premiums or claiming unavailability of crude.
Farouk Ahmed, the regulatory agency’s chief executive, expressed concerns over Dangote’s request to halt petroleum product imports, fearing it could lead to market monopoly.
Dangote refuted these claims, inviting lawmakers to inspect the plant where the products were tested, and clarified that he received no government incentives for the refinery. He also announced the cancellation of plans to invest in the steel industry.
The root of the dispute between Nigerian authorities and Dangote, whose companies dominate several markets, remains unclear. This conflict arose after President Bola Tinubu succeeded Muhammadu Buhari, a close ally of Dangote, following last year’s presidential election.
Analysts warn that such disputes could deter foreign investments and destabilize Nigeria’s economy. Nigerian economist Bismarck Rewane dismissed the allegations of low-quality products from the refinery as baseless without evidence or consumer complaints, suggesting deeper underlying issues.
Main Image: UPMatters
