Debunking the Myth: Aliko Dangote and the Nigerian Oil Sector

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By Zayyan Gwandu

It is mischievous and misleading to suggest that Aliko Dangote is trying to monopolize the Nigerian oil sector with his refinery. Monopoly implies the existence of competitors who are either bought out or bullied out of business. In Nigeria’s case, no refinery has operated for decades, and no other private investors have taken the same initiative as Dangote. This lack of competition is not due to Dangote’s actions but rather the absence of operational refineries and the inertia of other private investors. The dishonesty of the Nigerian National Petroleum Corporation (NNPC) further complicates the narrative. The NNPC initially declared acquiring 24% of shares in the Dangote refinery, only to be exposed as owning less than 10%. This discrepancy highlights a broader issue of transparency and trust within the sector. Furthermore, the billions of dollars lost to subsidies over the decades underscore the inefficiencies and systemic problems within the NNPC. If there is any entity that has demonstrated a monopolistic tendency in the Nigerian oil sector, it is the NNPC. The corporation’s long-standing control and the associated inefficiencies have significantly hindered the development of the sector. Therefore, rather than blaming Dangote, it is essential to address the underlying issues within the NNPC and the broader systemic challenges that have plagued the Nigerian oil industry for years. Nigerians must recognize that the nation’s biggest problems often lie within. Pointing fingers at those who take initiative, like Dangote, distracts from the real issues and hinders progress. It is time for a collective effort to foster transparency, encourage private investment, and hold accountable those who perpetuate inefficiencies within the system.