Will Dangote’s Refinery End Nigeria’s Oil Crisis or Fuel New Tensions? – Africa.com
Aliko Dangote’s $20 billion refinery is Africa’s largest and aims to end Nigeria’s dependence on expensive fuel imports. However, the joint venture faces significant challenges, including crude supply and pricing disputes with the Nigerian National Petroleum Corporation (NNPC) and regulators. Added to this is resistance from the “oil mafia” who benefit from fuel imports and the dysfunction in the industry. While the presence of the refinery will improve fuel quality and reduce costs such as freight charges, Nigerians may not see cheaper petrol as prices remain pegged to global crude prices. Furthermore, critics claim that the refinery in Dangote could create a monopoly. However, analysts see this as a step towards transparency. With the Nigerian government recently adopting a market-driven pricing model and oil traders resisting local sourcing, the refinery’s success depends on overcoming entrenched corruption and restoring trust in Nigeria’s oil industry.
source: British Broadcasting Corporation
