confidentially speaking
The Africa Confidential Blog
Oil battles expose rifts in business class
Patrick Smith
In parallel to the contest of wills between young activists in Nigerian cities and President Bola Tinubu’s government, another battle has been playing out. It pits Aliko Dangote against the government in Abuja and some of its business allies.
Insiders had detected a froideur towards the billionaire after Tinubu took over the presidency last May. Tensions increased after agents from the Economic and Financial Crimes Commission raided Dangote’s offices in January. They said they were investigating foreign exchange violations in collusion with ex-central bank governor Godwin Emefiele.
Tensions escalated further as Dangote’s refinery in the Lekki Free Trade zone started producing diesel, naphtha and aviation fuel. Dangote had wanted to buy crude oil directly from the state oil corporation (NNPC), but was refused. Another spat broke out over the size of the NNPC’s stake in Dangote refinery and the company’s failure to supply the agreed consignments of oil to pay for the stake.
The denouement this week was more surprising still. The NNPC turned 180 degrees and offered to sell Dangote 450,000 b/d of oil direct and in naira. The trigger seemed to have been a worsening shortage of petrol – another economic crisis which would have coincided with planned ‘Days of Rage’ protests in August. It is advantage Dangote, but the story isn’t
over yet.