In a recent interview, Nigerian activist and constitutional lawyer Deji Adeyanju expressed skepticism about the positive impact of the Dangote Refinery on fuel prices in Nigeria. He argued that the refinery’s fuel would likely be more expensive than current market prices due to Dangote’s capitalist approach and lack of interest in subsidies. Adeyanju criticized the Nigerian National Petroleum Company Limited (NNPCL) for selling crude oil to Dangote in naira, despite the international market trading in dollars.
Adeyanju questioned the special treatment given to Dangote, suggesting that the refinery should source crude oil independently like other entities. He advocated for privatizing other refineries to foster competition and improve efficiency. According to Adeyanju, government involvement in business has historically led to poor management and inefficiencies.
He also raised concerns about potential fuel scarcity if Dangote prioritizes selling fuel outside Nigeria for higher profits. Adeyanju emphasized the need for mechanisms to prevent Dangote from exploiting subsidized crude oil for personal gain, which could lead to persistent fuel shortages in the country.
Furthermore, Adeyanju highlighted the issue of artificial scarcity, questioning why fuel prices have increased despite ongoing subsidy payments. He suggested that the government should allow market forces to determine fuel prices, rather than relying on a single entity like Dangote to control the market. This, he believes, would lead to a more stable and competitive fuel market in Nigeria.
In conclusion, Adeyanju called for transparency and accountability in the management of Nigeria’s oil resources. He urged the government to create a level playing field for all players in the oil industry and to ensure that the benefits of the Dangote Refinery are felt by all Nigerians, rather than just a select few.
