A standoff is building between Africa’s richest man and the president of the continent’s most populous economy.
Stung by accusations from his home nation’s government that he’s seeking a monopoly for his $20 billion oil refinery, Aliko Dangote said he’s dropped plans to build a huge steel mill in the country for fear of similar allegations.
At stake is the health of an economy that’s struggled to attract investment, and the fate of Dangote’s refinery, the continent’s biggest, is in the balance. Without it, Nigeria — Africa’s largest crude-oil producer — will need to import almost all of its motor fuel.
Nigeria’s downstream regulator has said Dangote is seeking a ban on diesel imports to boost the viability of the plant and questioned the quality of its fuel. That follows the billionaire saying the state oil company has reneged on a deal to supply it with 300,000 barrels of crude a day.
“Building a refinery like this is supposed to be a pride for everybody,” the billionaire said, accusing the regulator of wanting to continue issuing import licenses for fuel (a lucrative source of income for Nigeria’s elite for decades) instead of allowing his refinery to thrive.
For Dangote, whose business empire was allowed to flourish under previous administrations in return for him investing billions of dollars, the dispute is a shock.
“Access and favors matter. And Dangote in cement was always accused of benefiting from a monopoly,” said Antony Goldman, founder of Promedia Consulting, a political risk-advisory firm. “Some critics say they fear a monopoly but omit to mention a status quo that relies on imports, importers and intermediaries.”
There’s unlikely to be a winner in this clash of titans, and ordinary Nigerians will also pay a hefty price.
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