Dangote Raises Fresh Concerns as 6 Fuel Stations Crash Pump Prices Below NNPC’s Rate

• Africa's richest man, Aliko Dangote, has once again spoken up about the challenges his refinery is facing
• He noted that some individuals are still opposing the success of its refinery operations, and he has vowed not to relent
• Dangote Refinery has been very instrumental in influencing the price of fuel, with its partners now selling below NNPC's rates

Dave Ibemere, a journalist at Legit.ng, has been reporting on business for over ten years. He has deep knowledge of the Nigerian economy, stock market, and general market trends.

Aliko Dangote has raised fresh concerns over persistent efforts by some individuals against the survival of his 650,000 barrels-per-day refinery located in Lekki, Lagos.

Speaking at an investor forum in Lagos on Friday, May 2, Africa’s richest man highlighted ongoing refinery challenges and vowed to continue to fight on.

Semafor, an international news medium, reported that Dangote revealed that certain individuals who have profited immensely for decades from government-subsidised oil imports into Nigeria are now the ones attempting to sabotage the fuel subsidy removal.

Dangote was quoted as saying that:

“Those groups have funded resistance to the Bola Tinubu government’s removal of petrol subsidies and are opposed to the refinery operating easily in the country.”

However, Dangote was confident that he and the group would win the battle, priding himself on being a long-time fighter.

He added:

“We’re fighting, and the fight is not yet finished. But I have been fighting all my life, and I am ready and 100 per cent sure I will win at the end of the day."

This is not the first time Dangote has raised an alarm about persons trying to undermine the operation of its refinery.

At a point in 2024, Dangote said he regretted building the refinery, saying the mafias in the oil and gas sector were stronger than those of drugs.

However, he refused to give up on the project as the facility targets its full capacity soon, Punch reports.

Dangote said:

"For 35 years, people were used to counting easy money. Now that those days are over, you can’t expect them to support you naturally, they’ll push back."

Dangote crashes fuel prices

Since kicking off operation, Dangote refinery has been key to determining the trajectory of fuel prices in Nigeria.

Recently, the refinery announced that it is reducing fuel prices and instructed its partner downstream players to also adjust prices.

Dangote's current retail partners include Technoil, MRS Nigeria, Ardova PLC, Optima Energy, and Hyde and Heyden.

Right now, most of Dangote's partners are selling fuel lower than the prices quoted by the Nigerian National Petroleum Corporation Limited at N880 per litre.

Dangote Refinery now an economic powerhouse

Aliko Dangote’s $19 billion refinery was meant to be Nigeria’s game-changer in the petroleum sector, but its journey to launch was far from smooth.

The Nigerian National Petroleum Company (NNPC) initially hesitated to supply crude, prioritising its own refineries despite their inefficiencies.

Negotiations dragged on, with the NNPC insisting on pricing and supply terms that delayed operations.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also posed hurdles.

Regulatory bottlenecks, licensing delays, and compliance issues slowed progress. At a point, Farouk Ahmed, NMDPRA boss, claimed that local refineries, including the Dangote Refinery, produce inferior products compared to imported ones.

Fuel marketers, on the other hand, worried the refinery’s dominance could disrupt existing distribution networks, adding another layer of contention.

Despite these setbacks, the refinery finally commenced operations, and its impact has been profound. Nigeria, once heavily dependent on imported fuel, now sees reduced forex spending on refined products.

Fuel scarcity has eased, and local industries benefit from a steady petroleum supply. The refinery also creates thousands of jobs, boosting economic activity across multiple sectors.

Now, with the refinery refining over 300,000 barrels per day, Nigeria moves closer to energy self-sufficiency.

The once-contentious project now stands as a beacon of industrial success, proving that overcoming bureaucratic and structural hurdles can unlock immense national growth.

Marketers worried about losses

Earlier, Legit.ng reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned oil dealers and importers of future losses.

The marketers warned that price cuts from the different players could result in a precarious situation, and advised the importers to make purchases carefully, to avoid being stuck with products they cannot sell.

Dangote and NNPC have silent and been locked in a silent price war in line with the deregulation of the industry.

The article was updated with additional information by the head of the business desk, Victor Enengedi.

Source: Legit.ng