Modular Refineries Seek Government Intervention Following Dangote’s Allegations
Modular refineries in Nigeria have rallied behind Aliko Dangote, Africa’s richest man, echoing his concerns about entrenched interests hindering local crude oil refining efforts.
The operators, represented by the Crude Oil Refinery Owners Association of Nigeria (CORAN), have called for urgent government intervention to address what they describe as sabotage by oil sector “mafias.”
Aliko Dangote recently drew attention to challenges faced by his $19 billion Dangote Petroleum Refinery project, highlighting attempts by local and international cartels to undermine its progress. He labeled these entities as “mafia,” emphasizing their powerful influence akin to drug cartels.
Eche Idoko, Publicity Secretary of CORAN, emphasized the association’s longstanding grievances regarding these issues. “Dangote’s revelations resonate with our own experiences and concerns about the control exerted by certain elements in the oil sector,” Idoko stated.
He stressed that such interference has severely impacted Nigeria’s ability to achieve self-sufficiency in petroleum product refining, exacerbating economic challenges including food inflation.
“The reason behind Nigeria’s persistent high food inflation is directly linked to the escalating costs of petroleum products, particularly Premium Motor Spirit (PMS),” Idoko asserted.
He argued that local refining would have alleviated these pressures, pointing out the disparities compared to other oil-producing nations like Saudi Arabia and Russia, which prioritize domestic energy needs.
Idoko criticized the current government’s handling of energy policies and engagements with stakeholders. He claimed that efforts by CORAN to engage with the presidency have been obstructed, hindering meaningful dialogue on crucial energy sector reforms.
“We have attempted to meet with the President on numerous occasions, but our efforts have been stymied. It is crucial for the government to clarify its stance on promoting self-sufficiency in domestic refining versus continued reliance on petroleum imports,” Idoko demanded.
In response to concerns raised by CORAN and Dangote, government officials have reiterated Nigeria’s commitment to OPEC+ production adjustments aimed at stabilizing global oil markets.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, reaffirmed this commitment during the 37th OPEC and OPEC+ meeting, emphasizing the importance of maintaining market stability through coordinated production adjustments.
Despite these assurances, CORAN remains steadfast in its call for decisive action to curtail the influence of oil sector mafias and promote local refining capacity.
The association urged transparency and proactive engagement from the presidency to address these critical issues affecting Nigeria’s economic sustainability and energy security.
