Siaka MOMOH
The issue of an existing mafia in the global industry raised by Aliko Dangote, President of Dangote Group, a mafia bigger than the one in the drug industry, should not be taken lightly by the Federal Government.
Aliko Dangote, speaking at the Afreximbank Annual Meetings (AAN) and AfriCaribbean Trade & Investment Forum in Nassau, The Bahamas, revealed that both local and international cartels, which he described as “mafia”, made repeated attempts to sabotage his $19bn refinery project located in Lagos.
Dangote said he knew from beginning that there would be a fight. “But I didn’t know that the mafia in oil are stronger than the mafia in drugs…,” he said.
According to Aliko Dangote, a former Minister of Energy in Saudi Arabia, Khalid Al-Falih, asked him to shelve the idea of building a refinery. He said he told the former minister that he did not need his advice.
We should not be surprised about the game that is playing out in the industry. Why should we expect a country or a region that has been enjoying a business monopoly for close to four decades to close its eyes to a disruptive challenge from a country it considers an underdog?
Government must wake up and throw its weight behind Dangote and other private companies and government agencies involved in strategic business in the country. This is the tradition in developed economies.
The Gulf States, part of which Saudi Arabia is, are smart at having an edge in business deals. We witnessed this playing out largely in land and freshwater grabs issue which Nigeria and some other countries were involved in. A Throwback story by this writer, on this subject, that explains it all is published below.
Dangote should expect reactions from West too because, according to an OPEC report, Nigeria’s Dangote Refinery could significantly disrupt Europe’s oil industry, reshaping global fuel supply dynamics.
The Organization of Petroleum Exporting Countries (OPEC) has highlighted the significant impact of Nigeria’s Dangote Refinery on the global oil market, particularly on Europe’s oil industry. According to OPEC’s June 2024 Oil Market Report, the supply of diesel and jet fuel from the Dangote Refinery is poised to disrupt Europe’s oil and gas sector, especially in Northwest Europe (NWE), a region heavily reliant on refined petroleum imports.
The Dangote Refinery, the world’s largest single-train refinery, began operations in January 2024 and has since been shaking up international crude flows. With a capacity of 650,000 barrels per day (bpd), the refinery has quickly become a key player in the global energy market. According to industry experts, the refinery’s output will not only challenge European suppliers but also have a positive impact on Nigeria’s economy.
OPEC’s report emphasizes the “upside potential for higher production levels from Nigeria’s Dangote refinery,” noting that these new supplies, combined with strong flows from the Middle East and Mexico’s Olmeca refinery, are likely to exert downward pressure on NWE gasoil performance in the mid-term. This shift comes at a critical time for Europe, which has been grappling with supply challenges following the European Union’s ban on Russian diesel imports.
We should expect Europe to fight back. It must protect its economic interest. We must therefore not rest on our oars.
