Obasanjo Highlights Fuel Importers’ Resistance
Following significant frustrations in the operation of the Dangote Refinery, caused by NNPC’s refusal to sell crude oil in naira, former President Olusegun Obasanjo has indicated that vested interests in the fuel importation sector are likely opposing the refinery’s launch. He revealed that these groups, benefiting from the status quo, are positioning themselves to resist the changes that the Dangote Refinery represents.
Encouraging Investment in the Nigerian Oil Sector
In an interview with the Financial Times, Obasanjo praised the Dangote Refinery as a key development poised to boost investment in Nigeria. He highlighted the potential for the refinery to attract both local and international investors but warned of significant obstacles posed by those entrenched in the fuel importation business.
Allegations of Market Manipulation by Oil Mafias
Dangote Group representatives have voiced concerns that international oil companies are undermining the refinery’s progress by refusing to sell crude oil or by selling it at inflated prices. Additionally, critics have accused the Nigerian Midstream and Downstream Regulatory Authority of issuing licenses to importers for substandard fuel, complicating the refinery’s operations.
Regulatory Challenges Impeding Progress
According to Obasanjo, the Nigerian government has poorly implemented its policy to support local refineries by selling crude oil in naira. The delay by NNPC in selling crude at directed prices has been a significant barrier, affecting the timeline and financial framework of the Dangote Refinery.
Concerns Over Potential Monopoly
Farouk Ahmed, Chief Executive of the NMDPRA, has stated that despite the challenges, Nigeria will continue to import fuel to prevent a potential monopoly by the Dangote Group. This reflects the government’s approach to maintain competitive market conditions while supporting local industry.
Obasanjo’s Call for Economic Transformation
Obasanjo criticized the current administration’s economic management strategies, particularly the handling of the fuel subsidy removal. He emphasized the need for a transformational approach to Nigeria’s economy that fosters inclusive growth and benefits all sectors, moving away from short-term, transactional economic policies.
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