Dangote Alleges Sabotage of $20bn Refinery by Oil Import Cabals
Written by Agboola Oluwafemi on May 5, 2025
The President of Dangote Group, Alhaji Aliko Dangote, has decried continued resistance to the operations of his $20 billion refinery, attributing the challenges to entrenched interests profiting from Nigeria’s long-standing dependence on fuel importation.
Speaking at an investor forum in Lagos, Africa’s richest man reaffirmed his commitment to seeing the 650,000 barrels-per-day Lekki-based refinery through to full-scale operation, despite what he described as ongoing sabotage.
According to a report by international news outlet Semafor, Dangote disclosed that powerful groups—who for decades benefited immensely from the government-subsidised importation of petroleum products—are now orchestrating efforts to undermine his refinery project.
“These groups have historically profited from oil subsidies and are actively resisting both the deregulation policy of the current administration and the seamless operations of our refinery,” he stated.
Despite the opposition, Dangote expressed unwavering determination: “We are still in the middle of this battle, but I have spent my life overcoming adversity. I am fully prepared and absolutely confident that I will prevail.”
The billionaire’s remarks come amid Nigeria’s broader plans to strengthen its petroleum reserves and mitigate potential disruptions to global oil markets.
Dangote had previously raised alarms about international oil companies (IOCs) allegedly obstructing the refinery’s access to crude oil, despite Nigeria’s domestic crude allocation policy. He also accused regulatory authorities of issuing import licences for substandard refined products, thereby undermining local refining efforts.
“I have faced the reality of a system where, for over 35 years, certain interests have grown accustomed to unchecked profits. The disruption of that status quo was never going to be welcomed. What we are seeing is a coordinated backlash—but one that will not endure,” Dangote asserted.
In a previous statement, Dangote disclosed that he was once advised by former Saudi Minister of Energy, Khalid Al-Falih, to abandon the refinery initiative—a suggestion he flatly rejected.
Meanwhile, the Vice President of Oil and Gas at Dangote Industries, Devakumar Edwin, corroborated Dangote’s stance, alleging that IOCs are deliberately inflating the price of local crude above international benchmarks, forcing the refinery to resort to costlier imports from distant markets like the United States. He also criticised the Nigerian Midstream and Downstream Petroleum Regulatory Authority for issuing licences that enable the importation of low-quality fuel.
“It appears the goal of these corporations is to ensure Nigeria remains an exporter of crude and a dependent importer of refined products—thus bolstering foreign economies while impoverishing our own,” Edwin said.
The refinery, which commenced petrol production in September 2024, is widely seen as a game-changer for Nigeria’s energy sector, with the potential to eliminate the country’s reliance on imported refined fuel. Its entry into the market has already led to a noticeable decline in pump prices, with petrol falling from approximately ₦1,100 per litre to ₦860.
This pricing shift, facilitated by a government-backed “naira-for-crude” exchange arrangement, has reportedly caused financial strain for petroleum importers who now struggle to compete.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has declared its support for Dangote, describing his actions as pro-people and consistent with a free market. IPMAN spokesperson Chinedu Ukadike described the resistance against Dangote as an expected outcome of market competition.
“This is typical in business. When your product outperforms others in quality and pricing, resistance is inevitable. We acknowledge that his pricing has disrupted some of our business models, but that’s the nature of a competitive market,” Ukadike remarked.
In contrast, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) urged all players to engage in healthy competition and avoid conflict. Its President, Billy Gillis-Harry, called on the government to ensure crude supply to all refineries and advocated a balanced, fact-driven industry landscape.
“There’s no need for conflict. Dangote should be allowed to operate fairly under the naira-for-crude policy, and other importers should also be given equal opportunities. Let the market thrive on merit,” he said.
He also commented on the temporary halt of the naira-for-crude pilot programme, urging a comprehensive review to ensure its sustainability and transparency.
While Nigerians have largely welcomed the drop in fuel prices, importers continue to voice concerns about unsustainable losses. Still, Dangote remains undeterred, vowing to push his refinery to full operational capacity, regardless of the challenges posed by industry players determined to preserve the old order.
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Author: Agboola Oluwafemi
Marketing Expert
