President of Dangote Group, Alhaji Aliko Dangote, has said he is still fighting for the survival of his $20 billion refinery in Lekki, Lagos State. Dangote, Africa’s richest man, revealed that the fight is not over yet, but he remains confident that he will win eventually. He made the statement during an investor forum held in Lagos on Friday.
According to a report by Semafor, Dangote said that powerful interests who have been benefiting from the government’s fuel subsidy policy are working hard to sabotage the refinery. He alleged that these groups are not happy about the removal of petrol subsidy by President Bola Ahmed Tinubu’s government, and they are also against the smooth operation of the Dangote Refinery.
He accused them of funding resistance against the current administration’s reforms in the oil sector and frustrating efforts to run the refinery successfully. Dangote insisted he has been a fighter all his life and assured that this challenge is one he will overcome.
“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,” he said.
Dangote had earlier warned of sabotage attempts from international oil companies (IOCs) and other players in the petroleum sector. He claimed these entities were deliberately denying the refinery access to local crude oil despite the government’s domestic supply obligations. Due to this challenge, the refinery has sometimes resorted to importing crude oil from distant countries like the United States, which increases operational costs.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries, had also accused the IOCs of hiking crude prices beyond global rates, thereby pushing the refinery into a tight corner. Edwin said the IOCs want Nigeria to continue exporting raw crude and importing refined fuel, so they can keep benefiting from refining outside the country.
In addition, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been accused of giving licences to fuel marketers to import substandard petroleum products, further hurting local refining efforts.
Despite these challenges, Dangote has refused to give up. He recalled that a former Saudi Minister of Energy, Khalid Al-Falih, once advised him to abandon the refinery project, but he rejected the suggestion. He also said the oil sector in Nigeria is full of mafias who are even stronger than drug barons, yet he remains determined to succeed.
Meanwhile, support is coming from some key players in the industry. The Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed their backing for Dangote. IPMAN Publicity Secretary, Chinedu Ukadike, acknowledged that business competition is normal and that Dangote’s refinery is affecting their sales due to lower prices. However, he said the group stands by him because his efforts will benefit the Nigerian people.
Ukadike noted that while Dangote’s low pricing sometimes clashes with their own profit margins, it helps to make fuel more affordable for Nigerians. He said, “We independent marketers are happy with him for his price slashes, although sometimes it’s against our own business strategy and projections. But that is part of the business.”
On the other hand, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) called for calm in the industry. Its National President, Billy Gillis-Harry, said all players should be allowed to operate in a fair and open market. He stressed the need for enough crude oil supply to all refineries and suggested a proper review of the naira-for-crude deal, which had earlier helped reduce petrol prices.
The naira-for-crude policy, approved by President Bola Tinubu, enabled Dangote Refinery to buy crude oil using the naira, which contributed to a significant reduction in petrol prices from around N1,100 per liter to about N860.
However, importers of refined products have expressed dissatisfaction with the price drop, saying they are forced to sell below cost, which is affecting their businesses.
Despite the resistance, Dangote believes that his refinery, which has already started producing petrol since September 2024, will help Nigeria stop depending on imported refined fuel. He said the country, West Africa, and the whole sub-Saharan region need this refinery.
