Dangote Vows to Defend $20bn Refinery Amid Mounting Sabotage Attempts

Aliko Dangote, Africa’s richest man and President of the Dangote Group, has reiterated his determination to protect and complete the mission of his $20 billion oil refinery, despite what he described as ongoing efforts by powerful interest groups to sabotage the project. Speaking during an investor forum in Lagos on Friday, Dangote revealed that the battle for the survival of the 650,000 barrels-per-day refinery, located in Lekki, Lagos, is far from over.

He insisted that entrenched interests—mainly beneficiaries of the now-abolished fuel subsidy regime—are actively resisting his refinery’s operations. According to international media outlet Semafor, Dangote accused these groups of funding opposition to President Bola Tinubu’s policy reforms, particularly the removal of petrol subsidies, and working to frustrate the success of his refinery.

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“This fight is not over,” Dangote declared. “We’re fighting, and the fight is not yet finished. But I have been fighting all my life, and I am ready and 100 percent sure I will win at the end of the day.”

Dangote’s remarks follow persistent claims that international oil companies (IOCs) and some domestic regulatory actors are undermining his refinery. The businessman highlighted the refusal of crude oil suppliers—both local and international—to supply his facility adequately. This denial of supply, he says, violates Nigeria’s Domestic Crude Supply Obligation and has compelled the refinery to source crude from as far away as the United States, increasing operational costs.

The businessman had previously expressed regret over the resistance, lamenting last year that the “oil mafias” opposing his project were more powerful than even global drug cartels. Nonetheless, he reaffirmed his commitment to push the refinery to full capacity, stressing its importance to Nigeria, West Africa, and the wider sub-Saharan region.

“In a system where, for 35 years, people are used to counting good money, and all of a sudden, they see that the days of counting that money have come to an end, you don’t expect them to pray for you,” he said. “Of course, you expect them to fight back.”

Accusations Against IOCs and Regulators

In a similar vein, Vice President of Oil and Gas at Dangote Industries, Devakumar Edwin, accused IOCs of deliberately inflating local crude prices above global benchmarks to sabotage the refinery’s operations. According to Edwin, this strategic pricing is forcing the refinery to rely on imported crude, thereby weakening its competitive advantage.

Edwin also accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of granting licences to traders to import low-quality, substandard petroleum products. These actions, he said, suggest a deliberate plot to maintain Nigeria’s dependence on foreign-refined products and prevent the refinery from thriving.

“The objective of the IOCs seems clear—to ensure Nigeria continues to export crude and import refined products,” Edwin stated. “This supports foreign economies while burdening Nigeria with high import costs and stifled local refining.”

Sector Reactions: Support and Caution

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has thrown its weight behind Dangote in his battle against entrenched players in the oil sector. Chinedu Ukadike, the association’s Publicity Secretary, praised the refinery’s impact on reducing pump prices, even though it occasionally conflicts with IPMAN’s business models.

“Every successful businessman faces resistance,” Ukadike said. “We are happy with the refinery’s price slashes because, despite the impact on our projections, it benefits Nigerians. We support Dangote 100 percent.”

However, not everyone agrees with a confrontational approach. The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) urged for peaceful coexistence and market fairness. Its president, Billy Gillis-Harry, argued that there should be room for both local refining and imports, as long as fair competition exists.

“There should be no discord in the downstream sector,” he said. “Dangote should continue refining with the naira-for-crude model, and importers should also be allowed to operate in a balanced and transparent environment.”

Nigeria’s Strategic Oil Future

Dangote’s refinery, which began producing petrol in September 2024, is poised to transform Nigeria’s energy landscape. It promises to reduce reliance on imports, stabilize pump prices, and create thousands of jobs. The government also sees it as a critical buffer against global oil market shocks, especially with evolving international trade tensions, such as those triggered by U.S. tariff threats.

The refinery’s presence has already begun shifting market dynamics, with many retailers adjusting prices and facing increased competition. Yet, the long-term success of the project may depend on the government’s ability to enforce policies that support local refining while addressing the monopolistic tendencies of entrenched players.

For Dangote, the refinery is more than a business venture—it’s a legacy project meant to reshape Nigeria’s oil industry. And despite the fierce opposition, he remains undeterred in his mission.