Africa’s richest man says sabotage won’t stop his Lekki refinery — IPMAN backs him, PETROAN urges calm
By IDNN Business Desk
Aliko Dangote, President of Dangote Group, says he is “still fighting” powerful interests sabotaging the survival of his $20 billion Lekki refinery. In a fiery address at an investor forum in Lagos, Africa’s richest man claimed entrenched oil import mafias are resisting the refinery’s success due to their loss of access to subsidized petroleum profits.
“We’re fighting, and the fight is not yet finished,” Dangote declared. “But I have been fighting all my life, and I am ready and 100 per cent sure I will win.”
According to a report by international outlet Semafor, Dangote believes this opposition is behind both the pushback against President Tinubu’s removal of fuel subsidies and the refinery’s difficulty securing crude oil domestically.
Mafias, IOCs, and Dirty Oil Licences
This is not the first time Dangote has sounded the alarm. Last year, he accused International Oil Companies (IOCs) of frustrating his operation by denying local crude supply — forcing imports from as far as the U.S. Vice President of Oil and Gas at Dangote Industries, Devakumar Edwin, previously accused IOCs of “deliberately hiking crude costs” to block refinery operations.
“It appears the objective is to ensure Nigeria remains a crude-exporting, refined-importing nation,” Edwin said in June 2024.
Dangote also faulted the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for issuing licences to marketers importing substandard fuel.
Despite this, Dangote reaffirmed his commitment to pushing the refinery to full capacity, dismissing regrets he once expressed due to intense sabotage.
Business Support and Industry Divide
The Independent Petroleum Marketers Association of Nigeria (IPMAN) publicly backed Dangote. IPMAN’s Publicity Secretary, Chinedu Udadike, described the battle as “normal business competition,” but affirmed full support for the refinery boss.
“We independent marketers support him in all ramifications,” Udadike said. “Yes, his price cuts affect our margins, but Nigerians are benefitting.”
However, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) urged a less confrontational approach. PETROAN President, Billy Gillis-Harry, stressed the need for a level playing field for all downstream operators.
“All players should be allowed to do business. The naira-for-crude deal should proceed, but let it be fair competition.”
Economic Impact and Naira-for-Crude Advantage
Since commencing fuel production in September, the 650,000 barrels-per-day facility has reportedly helped drive pump prices down — from over ₦1,100/litre to about ₦860/litre. The naira-for-crude arrangement, which allows Dangote to pay for crude in local currency, has been credited for these price drops. But fuel importers are counting heavy losses as consumers flock to cheaper Dangote fuel.
Amidst this, calls to review or halt the naira-crude pilot phase emerged — drawing concerns from industry watchers.
Dangote, unfazed, believes the opposition is temporary.
“People used to counting good money won’t pray for me — they’ll fight back. But this refinery is essential for Nigeria and Africa,” he stated.
