Peter Obi, the presidential candidate of the Labour Party in Nigeria’s recent general elections, has voiced his support for the Dangote Refinery amidst its ongoing conflicts with the Nigerian government.
Obi said that the refinery should receive the necessary support to succeed, describing the recent disputes between Dangote Industries and government agencies as “deeply troubling.”
“This issue transcends political affiliations and personal grievances. It is fundamentally about Nigeria’s economy, future, and the well-being of its citizens. Given Alhaji Dangote’s significant contributions to Nigeria, it is crucial that these disputes are resolved swiftly,” Obi stated.
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Background of the Conflict
The spat between Dangote and the federal government escalated last week, marked by allegations and counter-allegations from both sides.
The tensions began when Devakumar Edwin, Vice President of Oil and Gas at Dangote Group, accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of permitting the import of substandard fuel into the country. Farouk Ahmed, Chief of NMDPRA, responded by alleging that diesel from Dangote’s refinery and others had high sulfur levels, rendering it inferior to imported fuel.
Ahmed claimed that the AGO quality in terms of sulfur was the lowest as per West Africa’s requirement of 50 parts per million (ppm). He alleged that the Dangote refinery, along with others like the Waltersmith refinery, produced diesel with sulfur levels between 650 ppm to 1,200 ppm. Furthermore, Ahmed mentioned that the Dangote refinery remains in the pre-commissioning stage and has not yet received its operating license.
Recently, Aliko Dangote, Africa’s richest man, stated that individuals within the Nigerian National Petroleum Corporation (NNPC) and certain traders are running a blending plant in Europe, hinting at vested interests behind the recent attacks on his refinery.
Dangote also accused certain quarters of distributing substandard petroleum products, which have been damaging vehicles in Nigeria.
“Most of you have problems with your vehicles because of the bad fuel that we are importing,” Dangote said.
Against this backdrop, Obi urged government agencies to offer the necessary support for the seamless launch and operation of the Dangote Refinery and its associated enterprises.
He noted the refinery’s potential to generate approximately $21 billion in annual revenue and create over 100,000 jobs, with numerous additional positive impacts on the economy.
“The refinery has the potential to generate approximately $21 billion in annual revenue and create over 100,000 jobs, with numerous additional positive impacts on the economy,” Obi said.
He underscored the refinery’s strategic importance in addressing Nigeria’s fuel crisis, boosting foreign exchange earnings, and fostering economic growth.
“The refinery is too vital to fail and must not be hindered, considering its crucial role in our national welfare,” Obi added.
He called on the Federal Government and its agencies to recognize the significance of Dangote’s contributions, noting that Alhaji Dangote is not just a businessman but a national and African brand symbolizing patriotism, commitment, and impactful entrepreneurship.
Obi highlighted Dangote’s unwavering dedication to Nigeria’s industrialization, job creation, and economic growth despite adversities. He argued that given the current economic headwinds, including unemployment, inflation, forex scarcity, and debt, enterprises like Dangote Industries should be regarded as national treasures, meriting robust support and protection.
“With economic indicators like unemployment, inflation, forex scarcity, and debt worsening, every sensible and patriotic government should regard enterprises like Dangote Industries as national treasures, meriting robust support and protection. The success of Dangote is intrinsically linked to the success of Nigeria and Africa; conversely, its failure would be a significant setback for both Nigeria and the continent,” Obi stated.
Government Intervention
Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources, announced a meeting between all parties involved on Monday to address the escalating dispute. The meeting included top executives from Dangote Group, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Corporation Limited (NNPC).
“The meeting was a collaborative effort to find sustainable solutions to the challenges affecting the refinery. All parties involved demonstrated a strong commitment to proactive problem-solving and expressed their gratitude for the leadership and timely intervention provided,” Lokpobiri said.
The hope is that this mediation will bring a permanent end to the squabble, allowing Dangote Group, the regulators, and other players in the oil sector to focus on their shared goal of advancing Nigeria’s energy sector. With the refinery’s significant potential to boost Nigeria’s economy, it is crucial that it receives the support needed to overcome these challenges and achieve its full potential.
Other prominent Nigerians, including former Vice President, Atiku Abubakar, business tycoon, Femi Otedola, and the president of Afreximbank, Akinwumi Adeshina, have all added their voices, calling on the government to support the Dangote Refinery project.