Dangote’s fight for Nigeria’s oil future continues as he vows to defeat the cabal

The Nigerian billionaire, alluded to again, his a fight against some individuals in Nigeria’s long-standing oil importation system, who have reaped enormous benefits from government subsidies on imported petroleum.

He noted that they are still deliberately attempting to destroy his oil refinery, as he stated, “those groups have funded resistance to the Bola Tinubu government’s removal of petrol subsidies and are opposed to the refinery operating easily in the country.”

He, nonetheless, like he did a few months back, noted that he would eventually win, as reported by the Punch newspaper.

“We’re fighting, and the fight is not yet finished. But I have been fighting all my life, and I am ready and 100 per cent sure I will win at the end of the day,” Dangote added.

Alhaji Aliko Dangote, Africa’s richest individual, has a history of taking large-scale risks, but even he admits that his $23 billion oil refinery project is the most daring and difficult enterprise of his life.

While the Dangote Refinery has been hailed as a game-changing project for Nigeria’s energy sector, its journey from concept to reality has shown the country’s oil industry’s profound intricacies and vested interests, notably in refining.

The Dangote Refinery, located on a 6,200-acre site in the Lekki Free Zone, is the world’s largest single-train refinery.

The plant officially began operations in 2023, after more than a decade of construction and investment. However, the refinery’s real challenge began after its launch.

One of Dangote’s most notable conflicts has been with the Nigerian National Petroleum Corporation (NNPC). The NNPC initially offered to invest $1 billion for a 20% ownership interest in the refinery.

That offer was eventually reduced to 7%, with requests to reclaim a portion of the funds previously deposited.

Outside of this, the group had also complicated the process of the refinery sourcing crude as it initially mandated that the refinery purchase crude oil in dollars.

This was later mitigated by the Naira-for-Crude initiative, which allowed the refinery to purchase crude in the country’s local currency for six months, thereby reducing the cost of operation.

After six months, the initiative was halted again before being reintroduced, highlighting the complex market structure of the Nigerian oil sector.

Dangote is unreserved in his condemnation of the group, as he, in February, in an interview with Forbes, accused the group of being a part of the country’s “oil mafia.”

“The oil mafia is more deadly than the one in drugs because, with the oil mafia, there are so many people that are involved,” Dangote had said at the time.

“I’ve been fighting battles all my life, and I have not lost one yet.

You might be wining and dining with them, but these are the guys that are the masters of moving things around.”

As Dangote stays ongoing fighting the cabal, the Independent Petroleum Marketers Association of Nigeria declared their support for him.

“Well, this is business. Competition abounds. There is no businessman whom people will not fight if he is doing well, especially when it is only your goods that are being produced, and the others are not being patronised because of the price.

So, it is evident that every businessman wants to survive. It’s not an issue. What we can do is encourage him,” IPMAN Publicity Secretary, Chinedu Udadike, stated.

“We independent marketers are happy with him for his price slashes, although sometimes it’s against our own business strategy and projections. But that is part of the business, it is profit and loss.

You know the factors of demand and supply matter determines the market.

So, if he’s talking about how people want to sabotage him, he has told us that he’s ready to fight the oil cabals, and he is in this business to ensure that Nigerians don’t suffer.

So, we encourage him not to lose hope, and we independent marketers support him in all ramifications,” Ukadike added.