Africa’s richest man, Aliko Dangote, and the President of Nigeria are at odds, marking a significant face-off in the country’s economic landscape. Dangote, accused by the Nigerian government of monopolizing the market with his $20 billion oil refinery, has expressed concerns over similar allegations impacting his plans for a massive steel mill in the country.
As Dangote’s refinery hangs in the balance, Nigeria, the largest crude-oil producer in Africa, faces the prospect of importing most of its motor fuel if the dispute isn’t resolved. The downstream regulator has alleged that Dangote seeks a ban on diesel imports to enhance his plant’s viability and has questioned the quality of his fuel. In response, Dangote claimed that the state oil company failed to honour an agreement to supply 300,000 barrels of crude oil per day to his refinery.
Defending his refinery’s output, Dangote stated that his diesel is the best available in Nigeria, even as lawmakers consider a probe into the country’s fuel quality. He revealed that tests at his 650,000 barrel-per-day refinery lab showed it produced diesel with 87 parts per million (ppm) of sulfur, compared to over 1,800 ppm in two imported varieties. He emphasized that the company aims to achieve 10 ppm sulfur content by the end of the month, asserting that the facility produces the “best diesel in Nigeria.”
Dangote expressed pride in his refinery, stating, “Building a refinery like this is supposed to be a pride for everybody.” He accused the regulator of preferring to issue import licenses for fuel rather than allowing his refinery to succeed. This shift is a shock for Dangote, who notes that his empire flourished under previous governments in exchange for his investments worth billions of dollars.
Antony Goldman, founder of Promedia Consulting, a political risk advisory firm, commented, “Access and favors matter. And Dangote in cement was always accused of benefiting from a monopoly.” He added, “Some critics say they fear a monopoly but omit to mention a status quo that relies on imports, importers, and intermediaries.”
The ongoing clash between Dangote and the government underscores a critical issue for Nigeria, as the resolution of this conflict is essential to avoid further economic strain on the nation.
