Africa’s richest man, Aliko Dangote, says his $20 billion oil refinery is under siege by entrenched interests profiting from Nigeria’s long-standing fuel import system but insists he will win the battle.
Speaking at an investor forum in Lagos on Friday, Dangote revealed that efforts to derail the full operation of the 650,000 barrels-per-day Dangote Refinery are ongoing, even after its partial commissioning in 2023.
“We’re still fighting. The fight is not yet finished,” Dangote said. “But I have been fighting all my life and I’m 100 per cent sure I will win at the end of the day.”
Dangote claims a powerful coalition made up of those who have profited for decades from subsidised petroleum imports is working to sabotage the refinery’s success. These interests, he said, are allegedly funding resistance to President Bola Tinubu’s petrol subsidy removal policy and obstructing his refinery’s operations.
Oil Cartel Allegedly Behind Sabotage
Dangote and his team have repeatedly accused International Oil Companies (IOCs) and key players within Nigeria’s oil regulatory structure of undermining the refinery’s operations by denying it access to domestic crude despite the government’s Domestic Crude Supply Obligation (DCSO).
In 2024, Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries, alleged that IOCs were deliberately inflating crude prices locally to force the refinery to source from as far as the U.S., driving up production costs. He also accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of flooding the market with import licenses, allowing substandard petrol into the country.
“Their aim is to keep Nigeria dependent on imports, export our crude, create jobs abroad, and dump expensive refined products on us,” Edwin stated.
Price Cuts Reshape Fuel Market
Despite the headwinds, the Dangote Refinery has already begun disrupting the status quo. Following a naira-for-crude deal initiated by President Tinubu, which allowed the refinery to pay for crude in local currency, Dangote was able to drastically cut pump prices. Petrol prices reportedly fell from ₦1,100/litre to ₦860/litre, shaking up the market.
While consumers welcomed the reduction, importers and fuel marketers said they were incurring losses, as consumers now prefer to buy cheaper Dangote fuel. Some retailers claim they’re being forced to sell below cost just to compete.
Mixed Industry Reaction
The Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed full support for Dangote’s efforts.
“We stand with Dangote. He’s fighting for Nigerians. Competition is normal, but we encourage him not to give up,” said IPMAN spokesman Chinedu Ukadike.
However, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) called for calm and a level playing field.
“There should be no fight. Dangote should refine, others should import everyone should coexist. Let the government supply crude equitably,” said PETROAN president Billy Gillis-Harry.
He added that the temporary pause in the naira-for-crude deal may have triggered Dangote’s recent remarks and called for a full review of the pilot scheme.
Dangote: No Regrets, Just Resolve
Despite acknowledging that he once considered giving up the project, even citing advice from Saudi Arabia’s former energy minister to drop the idea, Dangote reaffirmed his commitment.
“In a system where people have made billions for decades, you don’t expect them to pray for you. Of course, they’ll fight back through crude non-supply, through market sabotage. But it’s temporary. We’ll get there.”
With other modular refineries gearing up for operations and international trade conditions shifting under President Trump’s aggressive tariffs, Dangote’s refinery remains Nigeria’s boldest attempt yet at ending fuel import dependency and reclaiming energy sovereignty.
