Aliko Dangote’s $20 billion refinery, Africa’s largest, aims to end Nigeria’s reliance on costly fuel imports. However, the venture faces immense challenges, including disputes over crude supply and pricing with Nigeria’s National Petroleum Company (NNPC) and regulatory authorities. Beyond that, there is also pushback from the “oil mafia” who benefit from fuel importation and the dysfunction in the sector. While the refinery’s existence will enhance fuel quality and cut costs like freight fees, Nigerians may not see cheaper petrol as prices remain tied to global crude rates. Also, critics allege that Dangote’s refinery could create a monopoly. However, analysts see it as a step toward transparency. With the Nigerian government recently adopting a market-driven pricing model and oil traders resisting local sourcing, the refinery’s success hinges on overcoming entrenched corruption and restoring trust in Nigeria’s oil industry.
SOURCE: BBC