My point of view, Dangote Refinery, the FG, and Nigerians

By IBRAHIM U. WAKILI

That 20% stake would also have made it much easier for the government to take tough but necessary decisions, including closing the borders and making the Dangote Refinery the main supplier of PMS to the Nigerian market, without fear of future exploitation.

I strongly believe that if Nigeria had held on to the original agreement of acquiring 20% stake in the Dangote Refinery, the situation we are facing today would have been far easier for everyone involved, for Aliko Dangote, for the government, and most importantly for the Nigerian masses. With the government owning a significant stake in the refinery, there would be little or no talk about monopoly, because Nigerians, through their government, would have been part owners of the facility.

That 20% stake would also have made it much easier for the government to take tough but necessary decisions, including closing the borders and making the Dangote Refinery the main supplier of PMS to the Nigerian market, without fear of future exploitation. The main reason some of us are strongly opposing the idea of shutting down importation of PMS today is not because we are against local production, but because we do not trust Aliko Dangote not to exploit Nigerians if he becomes the sole supplier of PMS to the Nigerian. This fear is real and it is valid.

If Nigeria had retained that stake, it would have served as a form of protection for Nigerians. Even in a worst case scenario where Nigerians feel exploited, the country would still be sharing significantly in the profits, since the government would be a major shareholder. Unfortunately, that is not the reality today. Nigeria has only 7% stake in terms of ownership of the facility, and yet majority of Nigerians want policy decisions to be shaped in a way that favors Dangote Refinery and help it grow, because that has always been the plan to reduce the pressure on FX, because significant portion of our FX goes to PMS importation of PMS, unfortunately Nigeria not buying that stake changes the dynamics of everything, and why we are here today.

Those who raise concerns are not enemies of progress, their fears are valid and is justified. From all indications, the government also seems unable or unwilling to properly regulate the Dangote Refinery. Dangote has successfully built a strong base of die hard supporters by delivering the refinery, and that public goodwill now appears to shield him from the level of scrutiny and regulation such a massive operation should attract.

I still believe that if Aliko Dangote is open to it, Nigeria should revisit the original agreement and reclaim that 20% stake. It would restore balance, reduce public distrust, protect Nigerians, and create a more transparent and fair energy market for everyone.