Business

Dangote Vows to Win Battle Against Sabotage: Says Oil Cabals Are Fighting to Kill His $20bn Refinery

Published by Tope Fakinlede on May 5th, 2025.

Dangote Vows to Win Battle Against Sabotage: Says Oil Cabals Are Fighting to Kill His $20bn Refinery

Africa’s richest man, Alhaji Aliko Dangote, says the battle to protect and sustain his $20 billion refinery project is ongoing, as he continues to face pushback from vested interests who feel threatened by its success.

Speaking at an investor forum in Lagos, Dangote expressed confidence that he would ultimately overcome the forces working against him. According to a report by Semafor, he pointed fingers at powerful groups who have long profited from subsidized fuel imports and are now resisting the progress of his 650,000 barrels-per-day refinery in Lekki, Lagos.

“These groups are not only opposing President Bola Tinubu’s removal of fuel subsidies,” Dangote said, “but they’re also trying to block the smooth operation of our refinery. But I’m used to fighting—and I will win.”

The billionaire industrialist has previously warned of efforts by oil “mafias” to derail his refinery, claiming that some individuals have gone as far as trying to sabotage the project.

Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), said Dangote’s struggles reflect the tough competition in the petroleum market. “When a business starts outperforming others, resistance is inevitable,” he said. “But we support him because his lower fuel prices are ultimately good for Nigerians.”

Though some independent marketers feel the price cuts hurt their own profit margins, they acknowledge Dangote’s efforts to make fuel more affordable.

Meanwhile, Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), urged all players in the downstream sector to avoid conflicts. He called for fair competition and encouraged the government to ensure consistent crude supply to Dangote and other local refineries.

He also weighed in on the temporary halt of the naira-for-crude deal—a government policy allowing Dangote to buy crude in naira, which had led to significant fuel price reductions. “Let’s focus on creating a stable market where everyone can thrive,” Gillis-Harry said.

The Dangote refinery, since starting operations, has helped drive petrol prices down from around N1,100 to N860 per litre. However, fuel importers argue that they’re now selling at a loss because they can’t compete with the lower prices.

While many Nigerians celebrate the price drop, tension continues to grow between domestic refiners and importers struggling to stay afloat in the changing market landscape.