Dangote Affirms Commitment to Overcome Sabotage of $20bn Refinery

Aliko Dangote, President of Dangote Group, has reiterated his resolve to defend his $20 billion refinery in Lekki against sabotage by vested interests benefiting from Nigeria’s subsidized oil import regime.

At a recent investor forum in Lagos, Dangote said, “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.”

The refinery, with a capacity of 650,000 barrels per day, began petrol production last September and represents a major effort to reduce Nigeria’s dependence on imported refined fuels. Dangote remains confident, declaring, “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 statement coincides with Nigeria’s plans to increase petroleum product stockpiles amid global market volatility. Dangote has accused some international oil companies and regulatory authorities of deliberately undermining the refinery by restricting crude supply and permitting the import of substandard products.

Despite these challenges, Dangote is determined to push the refinery to full capacity. His Vice President of Oil and Gas, Devakumar Edwin, alleged that international oil companies are frustrating the refinery by inflating crude prices, compelling it to import crude from the US at higher costs.

Industry stakeholders have responded, with the Independent Petroleum Marketers Association of Nigeria (IPMAN) backing Dangote’s fight against the so-called cabal, while the Petroleum Products Retail Outlet Owners Association (PETROAN) called for peaceful competition and government support in crude supply.

The refinery has contributed to lowering fuel prices in Nigeria, with Dangote reducing petrol prices from about N1,100 to N860 per litre. However, fuel importers have expressed concerns over losses. The refinery is also seeking new markets, having shipped jet fuel to Saudi Aramco.

To secure crude supply, Dangote is advancing upstream oil production in the Niger Delta and plans to acquire a floating production storage and offloading vessel. These moves aim to ensure the refinery’s long-term viability despite opposition from entrenched oil sector interests.