Business
Dangote and the Bottom of the Barrel, by Ike Willie-Nwobu
For decades now, thanks to unprecedented mismanagement, Nigeria’s biggest blessing has also remained its greatest curse in what will go down as a great paradox.
In many ways, the dysfunction of Africa’s largest economy and democracy which is also the 6th largest producer of oil in the world has been oiled by its oil. The degradation in the Niger Delta, colossal corruption at all levels of government, and a vicious variant of national complacency can all be traced to Nigeria’s oil. Indeed, at the heart of the question of resource control is the question about Nigeria itself.
Oil is the blood running through Nigeria’s veins. Even the current challenges which are poised to consume the eighteen-month long administration of President Bola Ahmed Tinubu can be traced to oil through the removal of fuel subsidy.
A key question in Nigeria’s oil economics which is at the root of its national economics, democracy and the different demographics is the question of refining. In other words, having been blessed with these natural resources in abundance, how can the country get the best value out of them?
Nigeria’s inability to untie the Gordian knot of its oil economics has resulted in more than a few problems. Some years ago, the restlessness of the Niger Delta region drove the country to the mouth of the precipice. If the region is quiet today, it is not because justice has been served, but because some of their supposed freedom fighters have now become too rich to undertake the grind of advocacy and militancy for environmental justice.
Even today, Nigeria is still rocked by the removal of fuel subsidy. The inability of the country to manage its oil economics well is the cause of so many problems today.
Some years ago, Africa’s second-richest man, Aliko Dangote, decided to take on the behemoth of the Nigerian oil sector and its albatross — refining. His decision to construct Dangote refinery was a major one. The refinery has since been completed and is now in operation.
But Dangote was always going to walk into fire the made from Nigeria’s oil, which may yet be what will burn down the country.
Recently, Dangote Petroleum Refinery and Petrochemicals dragged the Nigeria National Petroleum Corporation Limited (NNPC), Matrix Petroleum Services Limited, A. A. Rano Limited, and four other companies to the Federal High Court in Abuja court asking the court to void import licenses issued to them for the purpose of importing refined petroleum products that are already being produced by Dangote without shortfalls. The suit is clearly an attempt by the company to protect its new turf.
The 650,000 capacity Dangote Refinery which is a $20 billion project has finally started operations, even if it has encountered some teething problems.
The question is whether the company can finally do enough to fix what is a perennial problem for Nigeria. In The Rime of the Ancient Mariner, the poet Samuel Taylor Coleridge famously states, “Water, water everywhere, nor any drop to drink,” to paint a striking of Nigeria’s extremely complicated history with its oil.
Maybe the company was just crying wolf when there was absolutely none to protect the monopoly its staggering investment would confer when it alleged that there was a grand conspiracy between international oil companies and some interests within Nigeria opposed to moves for an indigenous refinery ready to solve the lingering energy crisis and save the economy.
For Aliko Dangote, a renowned global businessman profits and pragmatism weigh much heavier than patriotism. There can be no mistake about him investing in Nigeria’s oil business strictly for the money.
But if his company can achieve something that has eluded the country for many years now, it will go down as a remarkable success.
Dangote would certainly want his name to go down in gold for what would be a remarkable achievement. To get there, necessary concessions would have to be made to defeat the syndicate holding Nigeria’s oil sector to ransom.
Ike Willie-Nwobu,
Ikewilly9@gmail.com
