AGS NEWS – Former President Olusegun Obasanjo has warned that those profiting from fuel importation will try to hinder the Dangote Petroleum Refinery.

Obasanjo’s comments follow allegations by Aliko Dangote, President of the Dangote Group, about efforts by some ‘mafias’ to obstruct the $20 billion refinery project.

On Monday, it was reported that the Dangote refinery and other local refineries had not yet started buying crude oil in naira as directed by President Bola Tinubu to the Nigerian National Petroleum Company Limited.

In an interview with the Financial Times, Obasanjo emphasized the importance of the Dangote refinery for both Nigerian and international investors.

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He noted that those currently benefiting from the importation of refined products might resist the refinery’s success.

Dangote Group officials have accused international oil companies of frustrating the refinery by either refusing to sell crude or selling it at inflated prices.

They also claimed that the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) is issuing licenses for importing substandard fuel. The NMDPRA denied these claims, arguing that Dangote’s diesel is of lower quality compared to imported products.

Obasanjo criticized Nigeria’s over-reliance on oil, neglecting gas and agriculture. He recounted efforts to involve Shell in managing the country’s refineries, which were declined due to corruption and poor maintenance.

Obasanjo also criticized President Tinubu’s approach to removing fuel subsidies, suggesting that the government should have considered the potential hardships and mitigated them.

He stressed the need for a shift from a transactional to a transformational economy to attract investors.

Expressing concern about youth unemployment and unrest, Obasanjo warned that Nigeria is at risk of significant social instability if issues are not addressed promptly.

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Meanwhile, the Dangote refinery and other local refineries are still awaiting a response from NNPC regarding the purchase of crude oil in naira.

The Federal Executive Council had approved selling crude for domestic consumption in naira to Nigerian refineries, with the Dangote refinery as a pilot project. However, no action has been taken yet.

The Crude Oil Refiners Association of Nigeria (CORAN) has called for a meeting to discuss the supply framework and has requested an executive order to implement the new directive, which they believe will reduce petrol costs and strengthen the naira.