A recent claim by billionaire Aliko Dangote alleging sabotage of his giant refinery by International Oil Companies (IOCs) has sparked controversy and raised concerns about Nigeria’s energy security.
Initially, Wednesday’s fire incident at the refinery was viewed as another form of sabotage but the company was quick to douse the tension; assuring there was no cause for alarm.
That nonetheless, many Nigerians, hopeful for a drop in pump prices with the refinery’s mid-July launch, now face uncertainty.
Dangote Industries Limited (DIL)’s Vice President, Devakumar Edwin, accuses IOCs of deliberately hindering local crude purchases despite efforts by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce Domestic Crude Oil Supply Obligations (DCSO).
“The Federal Government issued 25 licenses to build refineries, and we are the only ones that deliver on the promise. “he stated.
“While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is trying its best to allocate the crude to us, the IOCs (International Oil Companies) are deliberately and willfully frustrating our efforts to buy the local crude.”
He added that the NUPRC had recently met with crude oil producers as well as refinery owners in Nigeria in a bid to ensure full adherence to Domestic Crude Oil Supply Obligations (DCSO), as enunciated under Section 109(3) of the Petroleum Industry Act (PIA). However, the IOCs have yet to publicly respond to these allegations.
Sabotage Claims Need Scrutiny
Dangote’s explosive interview on the sidelines of the AFREXIMBANK Afro Caribbean Trade and Investment Forum in Nassau in The Bahamas further fueled tensions.
He claimed powerful “cabals” in the oil and gas sector, who profit from exporting crude, are hindering his refinery’s access.
“I expected them to fight back,” Dangote had enthused. “But I think I have defeated them. Already.”
Experts believe this is a call for government intervention before the situation undermines Nigeria’s push for energy independence.
While some analysts support Dangote, others raise questions. They asserted that the Dangote refinery should be protected from the claws of sabotage to encourage further investors willing to come to Nigeria for business.
“Dangote refinery ought not to be in this dire situation where it will have to import fuel from the US while our crude is being shipped out to foreign lands for refinement,” Aminu Maigida, an oil and gas expert, contended.
“The federal government must demonstrate its resolve to throw its full weight behind companies like Dangote to restore investors’ confidence in the country.” he added
The current media spat between Dangote and industry players highlights a deeper issue. Nigerians, already burdened by high fuel costs, are caught in the middle. A win-win solution involving Dangote, IOCs, and the government is crucial.
“The major challenge is the cost of the Dangote diesel,” IPMAN National President Abubakar Maigandi told newsmen while reacting to Dangote’s sabotage claim.
“We are looking for a reduction from him. He should bring it to a little bit lower rate.”
He added that people bringing diesel from other countries into Nigeria is his fault and that it is because of his ‘exorbitant’ price.
Finding solutions
Beyond accusations, experts believe exploring alternative solutions are quite vital.
Can Dangote adjust pricing to make diesel more competitive? Can the government facilitate a dialogue or create a framework to ensure a steady supply of domestic crude to the refinery?
Addressing these gaps and fostering collaboration between all stakeholders is key to unlocking the Dangote refinery’s potential and delivering the promised fuel price reduction for Nigerians.
