Former President Olusegun Obasanjo has warned that those benefiting from fuel importation will make every effort to frustrate the Dangote Petroleum Refinery. In an interview with the Financial Times, Obasanjo described the refinery as a project that should inspire both Nigerians and non-Nigerians.

“Aliko’s investment in a refinery, if it succeeds, should encourage both Nigerians and non-Nigerians to invest in Nigeria. However, those who benefit from supplying refined products to Nigeria will likely try to hinder his efforts,” Obasanjo said.

His comments come in the wake of allegations by Aliko Dangote, President of the Dangote Group, that certain government and non-government officials were attempting to thwart the $20 billion refinery. Dangote Group officials have claimed that international oil companies are frustrating the refinery by refusing to sell crude oil or by selling it at a premium of up to $4 above the normal price.

This prompted the Federal Executive Council to direct the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in naira instead of US dollars.

Dangote Group also accused the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) of deliberately granting licences to individuals to import substandard fuel. The regulator denied this, stating that Dangote diesel was inferior to imported alternatives. NMDPRA Chief Executive Farouk Ahmed asserted that the country would not cease fuel importation to avoid creating a monopoly by the Dangote Group.

Dangote began operations at his Lagos facility last December, initially processing 350,000 barrels a day. The refinery aims to reach full capacity of 650,000 barrels per day by the end of the year. It has started supplying diesel and aviation fuel to marketers in the country, with petrol supply expected to commence in August amidst regulatory resistance.