The recent antics of Dangote Petroleum Refinery have laid bare a troubling picture of policy somersaults, corporate hypocrisy, and monopolistic ambitions that threaten Nigeria’s fragile economic stability and fuel sector reforms. This unbridled greed disguised as national service deserves unreserved condemnation. Barely three weeks ago, Dangote Refinery arrogantly hiked the ex-depot price of petrol to N950 per litre, citing rising international crude oil prices. Now, in an uncharacteristic about-face, it has slashed the price to N890 per litre, attributing the reduction to “a positive outlook in global energy markets.” While a reduction might sound like good news, it exposes a troubling pattern of erratic decision-making that destabilizes the market. This abrupt reversal from its previous increase paints a clear picture of opportunistic pricing designed to hoodwink the public while undermining competitors. Dangote Refinery’s manipulation of market conditions, while masquerading as a benevolent market leader, is a calculated move to tighten its grip on Nigeria’s already fragile petroleum sector.
But this is just the tip of the iceberg. In what can only be described as a staggering display of corporate greed and policy inconsistency, the Dangote Refinery has once again exposed its contempt for fair competition and the well-being of Nigerian citizens. While slashing petrol prices to present a benevolent image, Dangote Refinery has resorted to shamelessly importing 12 million barrels of crude oil from the United States, citing insufficient supply from the Nigerian National Petroleum Company Limited (NNPCL). The audacity of Dangote Refinery’s actions is nothing short of a national disgrace. This move blatantly contradicts its ongoing legal battle to block other oil marketers from securing import licenses. In its suit, Dangote Refinery argues that such licenses should only be granted when there is a proven shortfall in local supply. Apparently, this principle applies to everyone but Dangote.
Dangote’s hypocrisy reeks of monopolistic ambition. He wants to dominate Nigeria’s petroleum sector, dictate fuel prices, and corner the market—all while suing the government to revoke import licenses lawfully issued to other marketers. This egregious legal maneuvering to compel the Federal High Court to cancel legitimate import licenses granted to other oil marketers, including NNPC and several private firms is a clear attempt to stifle competition and establish an iron grip over Nigeria’s oil supply chain. Such behavior is not just anti-competitive; it’s anti-Nigerian. Let’s not mince words—the dangers of monopolizing a strategic sector like petroleum are enormous. By pushing for exclusive control, Dangote Refinery risks creating a scenario where operational disruptions could paralyze the country’s fuel supply, leading to artificial shortages, higher costs, and economic instability. This is precisely why competition in the market is essential, to ensure resilience, efficiency, and fair pricing.
It is galling that while the Tinubu administration pursues policies to make Nigeria self-sufficient in refined petroleum products, Dangote Refinery is sabotaging these efforts by undermining the market’s competitive landscape. The Petroleum Industry Act (PIA) was designed to liberalize the sector and encourage multiple players, not to hand over control to a single entity bent on monopolistic dominance. This brazen attempt to monopolize the oil supply chain flies in the face of the PIA, which encourages a competitive and diversified energy market. Dangote’s audacious claim that the licenses awarded to oil marketers to import crude oil, violate Sections 317(8) and (9) of the PIA is a smokescreen to hide its insatiable appetite for absolute control. The oil marketers’ counter-affidavit rightly warns that granting Dangote exclusive control would harm the economy, eliminate competition, and drive-up prices. The oil marketers further noted that Dangote does not even produce enough petroleum products to meet Nigeria’s daily consumption needs. This underscores the absurdity of its lawsuit – seeking monopoly status while failing to deliver adequate supply. These concerns are not hypothetical. They reflect the lived experiences of Nigerians who have witnessed the damaging effects of monopolies in other sectors controlled by Dangote Group.
Let us not forget that this is not the first time Dangote Group has sought to stifle competition and consolidate monopoly power in Nigeria. Its ventures in the cement industry offer a chilling precedent. Through strategic price manipulation and backdoor political deals, Dangote Cement has maintained a stranglehold on the market, driving up the cost of construction materials and stifling local competition. The company has repeatedly exploited its dominant position to suppress rivals and dictate unfavorable terms to the detriment of Nigerian consumers. In seeking N100 billion in damages and demanding the nullification of oil import licenses, Dangote Refinery disregards the simple fact that it currently lacks the capacity to meet Nigeria’s daily consumption needs. Dangote’s reliance on imported crude, despite its massive $20 billion investment underscores its inability to operate independently-a glaring contradiction to its monopolistic ambitions. How can a refinery that imports crude itself justify a legal assault on oil marketers who do the same to keep the economy running?
High-profile cases of monopolistic greed and policy manipulation have historically undermined Nigeria’s economic progress. From the cement industry’s price manipulation to telecommunications sector abuses, monopolies have consistently exploited consumers and stifled innovation. Dangote Refinery’s current maneuvers fit neatly into this dismal pattern. What makes this even more egregious is the refinery’s shameless invocation of patriotism while acting solely in self-interest. Its statement urging marketers to “collaborate” to pass on the benefits of the price reduction rings hollow when juxtaposed with its lawsuit aimed at driving these very marketers out of business.
The Federal Government, through the NMDPRA and other regulatory bodies, must act decisively. The court must reject Dangote’s baseless lawsuit and his cynical attempt to rewrite the rules of the oil sector for its selfish gain. Furthermore, robust measures should be implemented to prevent any single player from monopolizing the market. Nigeria’s fuel sector, and its people deserve a competitive, transparent, and stable environment. More importantly, President Tinubu must protect the integrity of Nigeria’s oil market and resist any temptation to pander to Dangote’s insatiable appetite for monopoly. In a nation plagued by economic hardship and rising living costs, Dangote’s actions are not just a betrayal of trust but a direct assault on the Nigerian people. Monopoly has no place in a democratic, market-driven economy. It is time to call out Dangote’s duplicity and demand accountability.
A functional democracy thrives on fair competition, not monopolistic practices driven by corporate greed. Nigerians must not be held hostage by the whims of a single corporation. The government must stand firm in upholding market principles that promote competition, affordability, and innovation. The petroleum sector, like every other critical industry, belongs to the Nigerian people, not to Aliko Dangote. The interests of the Nigerian people must come first. It is time to send a clear message: Nigeria will not be a playground for monopolistic ambitions. Nigerians must reject this brazen attempt to corner the oil market and insist on policies that promote competition, transparency, and fairness. Anything less is a recipe for disaster.
