Fuel importers threaten Dangote Refinery's success - Obasanjo warns

Former President Olusegun Obasanjo has expressed concerns over efforts by those benefiting from fuel importation to frustrate the Dangote Petroleum Refinery.

Speaking to the Financial Times, Obasanjo emphasised the significance of the $20 billion refinery project led by Aliko Dangote.

"Aliko's investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria," Obasanjo remarked.

However, he cautioned, "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."

This warning comes amid recent claims by Dangote that government and non-government officials are attempting to undermine the refinery.

The Dangote Group has accused international oil companies of either refusing to sell crude or selling it at a premium, up to $4 above the standard price.

In response, the Federal Executive Council has directed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in naira rather than U.S. dollars.

Criticism of petroleum regulators

Additionally, the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) has been criticised for allegedly granting licenses to import substandard fuel.

The regulator, however, defended its actions, claiming Dangote's diesel is inferior to imported versions and stressed the need to avoid creating a monopoly.

Despite these challenges, the Dangote Refinery, which began operations in Lagos last December, has started supplying diesel and aviation fuel.

The refinery aims to reach its full capacity of 650,000 barrels per day by year-end, with petrol supply expected to commence in August amid ongoing regulatory resistance.