Aliko Dangote, Africa’s richest man and owner of the Dangote Refinery, has revealed some of the major obstacles in Nigeria’s oil industry, pointing to the powerful control exerted by cartels. In a recent interview with Bloomberg, Dangote likened the oil mafia’s influence to being even greater than that of drug cartels.
“I never knew that the oil industry mafia is stronger than the drug cartel; it’s a big cartel,” Dangote remarked, emphasizing how these groups manipulate fuel prices to protect their own interests and block competition.
However, Dangote expressed confidence that his refinery could outsmart these cartels due to its ability to operate in local currency (naira), an advantage the cartels lack.
In related news, the Federal Government and Dangote Refinery have finalized a deal to supply 12 million barrels of crude oil to the facility in October. This agreement is part of the “Crude Oil for Naira” initiative, a partnership designed to enable local processing of crude oil into petrol, diesel, and jet fuel.
