Feature/OPED
2023: Delta State Deputy Governorship and Christopher Ochor’s Competency
By Jerome-Mario Chijioke Utomi
It is no longer news that the Speaker of the Delta State House of Assembly, Sheriff Oborevwori, has emerged as the gubernatorial candidate of the Peoples Democratic Party (PDP) in the state.
It is equally relevant to the present discourse to underline that Oborevwori, who is also the National Deputy Chairman of the Conference of Speakers of State Legislatures of Nigeria, displayed uncommon resilience to clinch the ticket and presently celebrates his landslide victory with a call on Deltans to ensure they all have their Permanent Voter Cards (PVCs) before the 2023 general elections.
Expectedly, his victory has elicited reactions from stakeholders and the general public. The boundaries between both spheres/reactions have shifted back and forth for some days.
While some hailed his emergence, others are particularly not against but are of the view that looking at the re-boost working relationship that exists currently between Oborevwori and Deputy Speaker, Christopher Ochor Ochor, both should be encouraged/allowed to run on a joint ticket as Governor and Deputy Governor respectively.
Aside from the time-honoured belief that one needs not to change a winning team, the present argument is predicated on the seamless and mutual relationship evidently demonstrated in the last three years and enjoyed by the duo working as Speaker and Deputy Speaker.
Instead of allowing this relationship by these public office holders turned brothers to go with political winds, the Oborevwori/Ochor joint ticket should be encouraged and gainfully harnessed for the greater gain of the PDP, the state and for the greater good of Deltans, they concluded.
Indeed, the above argument, in the opinion of this piece, may not be wrong considering the fact that Oborevwori/Ochor co-existence and healthy relationship, which many see as not just a departure from the old order in the state, but a major factor and actor responsible for the sustainable peace the state House of Assembly and its members presently enjoy and by extension, sets the stage for a rancour-free relationship between the state executive and the legislature.
At about the same time, many have peripherally raised the question as to if Ochor is truly laced with the capacity needed to occupy and function at the level of Deputy Governor of Delta State? Does he really understand the meaning and requirement of being a deputy governor of a complex state like Delta or aware that it requires intensive efforts to keep the people of the state together? Is he ready to mix and interact with people of different types and classes in the state to benefit from their experience?
Does Ochor have the right temperament, positive mindset, flexible attitude and enterprise spirit to work hard with a concentration on the business of governance? Is he aware that as a state deputy governor, he needs to have detailed knowledge and sound experience before assuming such a sensitive position? Is he ready to gain adequate knowledge and experience with patience before May 29, 2023? Is he capped with patience, humility, tolerance and responsiveness to undergo this important phase of learning and experience? Is he cost and labour conscious? Is he aware that he is required to understand and follow public leadership rules, regulations and other restrictions and then conduct the business of governance each time his principal is not around?
Without a doubt, these are not just important questions but objective concerns.
However, while this piece is too short a space to establish whether Ochor understands or better still recognizes the fact that it takes prolonged efforts to govern the people well, it is spaced enough to underline fundamental factors that may not only work in favour of Ochor if chosen but more than anything else makes him the best man for the job.
Aside from the awareness that Ochor, current House Member Representing, Ukwuani constituency in the Delta State House of Assembly, will never be a liability to the Governor or the state as he is a certified teacher and graduate of Agriculture from Delta State University, with varying experiences in public service, there are indeed more sincere and applied reasons why he should be considered the best man for the job.
First is his experience which stands him out and sets him miles apart from the bunch of politicians angling for the position. Evidence abounds that in the early years of the 4th Republic, he occupied various positions among which are, Special Assistant to the Governor on Youth Matters and Special Adviser to the Governor on Youth Matters.
In the same, as a brief member of the Delta State House of Assembly between 2007 and 2008, he sponsored a bill targeted at the protection of public properties, while at the same time attracting government attention to his constituency, especially in health and road constructions. As a Commissioner for Special Duties between 2008 and 2010, his performance was not only remarkable but outstandingly glaring.
Equity and fairness consideration is the second very essential reason why Ochor must be considered for the position. There is no doubt that Ndokwa people, going by available records, have been active in socio-economic and political affairs since the days of Western and Mid-Western regions, Bendel State and now Delta State. In view of this spiralling fact, equity and justice should be the defining approach to the present political season/electioneering period.
If the above argument is considered and given a favourable consideration, Ochor, without fear of contradiction, remains one of the most visible and relevant politicians from the area with impeccable experience and records to benefit from such an arrangement.
Away from the support given to other ethnic groups to produce state governors at different times and places, the Ijaw ethnic nationality, the Deputy Speaker has represented his people well and, therefore, should be rewarded with a higher office as it is a known adage that the reward for good work is more work.
This claim on performance is evidence-based and speaks for it.
He facilitated the construction and equipping of the Umutu Magistrate Court to ensure persons don’t have to travel far to seek justice in the law court, amongst other economic contributions to the lives of the people of Ukwuani, such as the construction of the Drainage to check the erosion at the mouth of the source of River Ethiope.
Between 2012 and 2014, he was the Transition Chairman of the Ukwuani Local Government Area Council. His tenure as Chairman of the Council hallmarked his beliefs that security is the bedrock upon which development can be achieved through peace.
On assumption of office, Ochor inherited an area infested with rampant kidnapping, intra and inter-communal rift, cultism, youth restiveness and ritual related killings. Day and nightlife were a nightmare. Security report on the Local Government Area was debilitating. He tackled these hydra-headed monsters through various security based strategies. Through his facilitation, the State Commissioner of Police set up the ASP Lucas led Anti-Kidnapping crack team. He changed the suspicious relationship between his office and the law enforcement agencies on one hand, and the public on the other hand.
Operational vehicles, accommodations, and welfare arrangements were made which boosted an effective intelligence gathering and community policing of the area.
Ochor is a leader that appreciates Alternative Dispute Resolution (ADR) to forestall the breakdown of law and order and he used this effectively to achieve peace amongst the communities in the LGA and border communities between Delta and Edo States.
In 2015, he was appointed as the Executive Director Social Services Development Directorate on the Board of the Delta State Oil Producing Areas Development Commission (DESOPADEC).
As an Executive Director, Social Services Development, a directorate charged with carrying out social, community and cultural needs of the people of the oil producing communities in Delta State, he created a system of checks and balances, for the commission, and ensured that programs that will impact on the people directly are implemented, such that the Directorate was able to plan, and ensured that a skilled training manual was produced, which became a reference point for the skill acquisitions programmes of the state.
He initiated the survey of the school facilities across the various schools within the mandate area of DESOPADEC, this brought the awareness that many of the schools are in dire need of learning facilities, including buildings, which caused the renovations, and furnishing of identified schools.
In 2019, he took another shot to represent the people of Ukwuani at the state House of Assembly and won.
As a member of the Delta State House of Assembly, he had while carrying out his primary duty as a legislature, supported that effective bills are passed into law for good of the state.
In this he had supported the passage of the Governor and Deputy pension Rights Amendment Bill 2019, Delta State Corporate Social Bill 2019, Co-sponsored the bill on HIV/Aids Anti-Discrimination Bill, 2020, a Bill to Eliminate Violence in Private and Public life, and other bills that had been passed into law for good of the state.
Another bill sponsored by him, passed and signed into law is the State Assembly Fund Management Bill 2021, which was for the full autonomy of the State House of Assembly.
He had in relation to the executive, attracted effective development of the area, such as youth empowerment, road, school, and market constructions.
Ochor, as a promise he made to his people, has more than 120 persons under his payroll crossing all wards, and beyond his constituency. He had empowered various persons with seed money for businesses and equipment, including 23 girls he publicly empowered with various business equipment and cash tools to take off, and 156 market women through various cash to boost their trades.
He has at various levels been recognised by different organisations, including the Economic and Financial Crime Commission (EFCC) as the best performing local government chairman in financial management in Delta State, the best Chairman for the utilisation of the SURE-P fund to train, and empower youths, amongst others, including the media, students, and security awards.
This piece thinks that it is the likes of Ochor that Delta as a state currently needs.
Jerome-Mario Chijioke Utomi is the Programme Coordinator (Media and Public Policy) at Social and Economic Justice Advocacy (SEJA), Lagos. He can be reached via [email protected]/08032725374
Feature/OPED
If You Understand Nigeria, You Fit Craze
By Prince Charles Dickson PhD
There is a popular Nigerian lingo cum proverb that has graduated from street humour to philosophical thesis: “If dem explain Nigeria give you and you understand am, you fit craze.” It sounds funny. It is funny. But like most Nigerian jokes, it is also dangerously accurate.
Catherine’s story from Kubwa Road is the kind of thing that does not need embellishment. Nigeria already embellishes itself. Picture this: a pedestrian bridge built for pedestrians. A bridge whose sole job description in life is to allow human beings cross a deadly highway without dying. And yet, under this very bridge, pedestrians are crossing the road. Not illegally on their own this time, but with the active assistance of a uniformed Road Safety officer who stops traffic so that people can jaywalk under a bridge built to stop jaywalking.
At that point, sanity resigns.
You expect the officer to enforce the law: “Use the bridge.” Instead, he enforces survival: “Let nobody die today.” And therein lies the Nigerian paradox. The officer is not wicked. In fact, he is humane. He chooses immediate life over abstract order. But his humanity quietly murders the system. His kindness baptises lawlessness. His good intention tells the pedestrian: you are right; the bridge is optional.
Nigeria is full of such tragic kindness.
We build systems and then emotionally sabotage them. We complain about lack of infrastructure, but when infrastructure shows up, we treat it like an optional suggestion. Pedestrian bridges become decorative monuments. Traffic lights become Christmas decorations. Zebra crossings become modern art—beautiful, symbolic, and useless.
Ask the pedestrians why they won’t use the bridge and you’ll hear a sermon:
“It’s too stressful to climb.”
“It’s far from my bus stop.”
“My knee dey pain me.”
“I no get time.”
“Thieves dey up there.”
All valid explanations. None a justification. Because the same person that cannot climb a bridge will sprint across ten lanes of oncoming traffic with Olympic-level agility. Suddenly, arthritis respects urgency.
But Nigeria does not punish inconsistency; it rewards it.
So, the Road Safety officer becomes a moral hostage. Arrest the pedestrians and risk chaos, insults, possible mob action, and a viral video titled “FRSC wickedness.” Or stop cars, save lives, and quietly train people that rules are flexible when enough people ignore them.
Nigeria often chooses the short-term good that destroys the long-term future.
And that is why understanding Nigeria is a psychiatric risk.
This paradox does not stop at Kubwa Road. It is a national operating system.
We live in a country where a polite policeman shocks you. A truthful politician is treated like folklore—“what-God-cannot-do-does-exist.” A nurse or doctor going one year without strike becomes breaking news. Bandits negotiate peace deals with rifles slung over their shoulders, attend dialogue meetings fully armed, and sometimes do TikTok videos of ransoms like content creators.
Criminals have better PR than institutions.
In Nigeria, you bribe to get WAEC “special centre,” bribe to gain university admission, bribe to choose your state of origin for NYSC, and bribe to secure a job. Merit is shy. Connection is confident. Talent waits outside while mediocrity walks in through the back door shaking hands.
You even bribe to eat food at social events. Not metaphorically. Literally. You must “know somebody” to access rice and small chops at a wedding you were invited to. At burial grounds, you need connections to bury your dead with dignity. Even grief has gatekeepers.
We have normalised the absurd so thoroughly that questioning it feels rude.
And yet, the same Nigerians will shout political slogans with full lungs—“Tinubu! Tinubu!!”—without knowing the name of their councillor, councillor’s office, or councillor’s phone number. National politics is theatre; local governance is invisible. We debate presidency like Premier League fans but cannot locate the people controlling our drainage, primary schools, markets, and roads.
We scream about “bad leadership” in Abuja while ignoring the rot at the ward level where leadership is close enough to knock on your door.
Nigeria is a place where laws exist, but enforcement negotiates moods. Where rules are firm until they meet familiarity. Where morality is elastic and context-dependent. Where being honest is admirable but being foolish is unforgivable.
We admire sharpness more than integrity. We celebrate “sense” even when sense means cheating the system. If you obey the rules and suffer, you are naïve. If you break them and succeed, you are smart.
So, the Road Safety officer on Kubwa Road is not an anomaly. He is Nigeria distilled.
Nigeria teaches you to survive first and reform later—except later never comes.
We choose convenience over consistency. Emotion over institution. Today over tomorrow. Life over law, until life itself becomes cheap because law has been weakened.
This is how bridges become irrelevant. This is how systems decay. This is how exceptions swallow rules.
And then we wonder why nothing works.
The painful truth is this: Nigeria is not confusing because it lacks logic. It is confusing because it has too many competing logics. Survival logic. Moral logic. Emotional logic. Opportunistic logic. Religious logic. Tribal logic. Political logic. None fully dominant. All constantly clashing.
So, when someone says, “If dem explain Nigeria give you and you understand am, you fit craze,” what they really mean is this: Nigeria is not designed to be understood; it is designed to be endured.
To truly understand Nigeria is to accept contradictions without resolution. To watch bridges built and ignored. Laws written and suspended. Criminals empowered and victims lectured. To see good people make bad choices for good reasons that produce bad outcomes.
And maybe the real madness is not understanding Nigeria—but understanding it and still hoping it will magically fix itself without deliberate, painful, collective change.
Until then, pedestrians will continue crossing under bridges, officers will keep stopping traffic to save lives, systems will keep eroding gently, and we will keep laughing at our own tragedy—because sometimes, laughter is the only therapy left.
Nigeria no be joke.
But if you no laugh, you go cry—May Nigeria win.
Feature/OPED
Post-Farouk Era: Will Dangote Refinery Maintain Its Momentum?
By Abba Dukawa
“For the marketers, I hope they lose even more. I’m not printing money; I’m also losing money. They want imports to continue, but I don’t think that is right. So I must have a strategy to survive because $20 billion of investment is too big to fail. We are in a situation where we will continue to play cat and mouse, and eventually, someone will give up—either we give up, or they will.” —Aliko Dangote
This statement reflects that while Dangote is incurring losses, he remains committed to his investment, determined to outlast competitors reliant on imports. He believes that persistence and strategy will eventually force them to concede before he does.
Aliko Dangote has faced unprecedented resistance in the petroleum sector, unlike in any of his other business ventures. His first attempt came on May 17, 2007, when the Obasanjo administration sold 51% of Port Harcourt Refinery to Bluestar Oil—a consortium including Dangote Oil, Zenon Oil, and Transcorp—for $561 million. NNPC staff strongly opposed the sale. The refinery was later reclaimed under President Yar’adua, a setback that provided Dangote a tough but invaluable lesson. Undeterred, he went on to build Africa’s largest refinery.
As a private investor, Dangote has delivered much-needed infrastructure to Nigeria’s oil-and-gas sector. Yet, his refinery faces regulatory hurdles from agency’s meant to promote efficiency and growth. Despite this monumental private investment in the nation’s downstream sector, powerful domestic and foreign oil interests may have influenced Farouk Ahmad, former NMDPRA Managing Director, to hinder the refinery’s operations.
The dispute dates back to July 2024, when the NMDPRA claimed that locally refined petroleum products including those from Dangote’s refinery were inferior to imported fuel. Although the confrontation appeared to subside, the underlying rift persisted. Aliko Dangote is not one to speak often, but the pressure he is facing has compelled him to break his silence. He has begun to speak out about what he sees as a deliberate targeting of his investments, as his petroleum-refining venture continues to face repeated regulatory and institutional challenges.
The latest impasse began when Dangote accused the NMDPRA of issuing excessive import licenses for petroleum products, undermining local refining capacity and threatening national energy security. He alleged that the regulator allowed the importation of cheap fuel, including from Russia, which could cripple domestic refineries such as his 650,000‑barrel‑per‑day Lagos plant.
The conflict intensified after Dangote publicly accused Farouk Ahmad, former head of NMDPRA, of living large on a civil servant’s salary. Dangote claimed Ahmad’s lifestyle was way too lavish, pointing out that four of his kids were in pricey Swiss schools. He took his grievance to the ICPC, alleging misconduct and abuse of office.
It’s striking how Nigerian office holders at every level have mastered the art of impunity. Even though Ahmad dismissed the accusations but the standoff prompting Ahmad’s resignation. But the bitter irony these “public servants” tasked with protecting citizens’ interests often face zero consequences for violating policies meant to safeguard the Nation and public interest.
The clash of titans lays bare deeper flaws in Nigeria’s petroleum governance. It shows how institutional weaknesses turn regulatory disputes into personal power plays. In a system with robust norms, such conflicts would be settled via clear rules, independent oversight, and transparent processes not media wars and public accusations.
Even before completion, the refinery’s operating license was denied. Farouk Ahmad claimed Dangote’s petrol was subpar, ordering tests that appeared aimed at public embarrassment. Dangote countered with independent public testing of his diesel, challenging the regulator’s claims.
He also invited Ahmad to verify the tests on-site, but the offer was declined. Moreover, NNPC initially refused to supply crude oil, forcing Dangote to source it from the United States a practice that continues.
President Tinubu later directed the NNPC to resume crude supplies and accept payment in naira, reportedly displeasing the state oil company. In addition to presidential directives, Farouk claimed Dangote was producing petrol beyond the approved quantity and insisted that crude oil be purchased exclusively in U.S. dollars a condition Dangote accepted.
From the public’s point of view, the Refinery is a game-changer for Nigeria, with the potential to end fuel imports and boost the economy. With a capacity of 650,000 barrels per day, it produces around 104 million liters of petroleum products daily, meeting 90% of Nigeria’s domestic demand and allowing exports to other West African countries.
The Dangote Refinery is poised to earn foreign exchange, stabilize fuel prices, and strengthen Nigeria’s energy security. However, the ongoing dispute surrounding the refinery underscores the challenges of aligning national interests with regulatory and institutional frameworks.
The Dangote Refinery’s growing dominance has sparked concerns among stakeholders like NUPENG and PENGASSAN, who fear it could lead to a private monopoly, stifling competition and harming smaller players. This concern stems from the refinery’s rejection of the traditional ₦5 million-per-truck levy on petroleum shipments.
However, Dangote has taken steps to address these concerns, reducing the minimum purchase requirement from 2 million liters to 250,000 liters, opening the market to smaller operators and strengthening distribution networks. The refinery has also purchased 2,000 CNG trucks to maintain operations, emphasizing its commitment to making energy affordable and accessible
Many are watching closely to see if Dangote’s actions are driven by a desire for transparency and fairness in Nigeria’s oil and gas sector or private business interests. Did Dangote genuinely want to fight the corruption going on in the sector?, Will Dangote refinery operate for the common good or seek market dominance? Did Farouk Ahmad act in the public interest or obstruct the refinery for hidden oil interests? Will the Dangote Refinery Maintain Its Momentum in the Post-Farouk Era?The dispute between Dangote and Farouk Ahmad remains shrouded in mystery, with the ICPC investigation likely to uncover the truth
To many, the government faces a delicate balancing act: protecting local refiners while ensuring fair competition. While some argue that Dangote’s success shouldn’t come at the expense of smaller players, others see it episodes like this reveal persistent contradictions: powerful interests, fragile institutions, and blurred lines between regulation and politics.The Petroleum Industry Act (PIA) promised a new era of clarity, efficiency, and accountability, but its implementation has been slow. The PIA’s success hinges on addressing these challenges.
What benefits one party can indeed threaten another. Despite entering the sector with good intentions, Dangote has faced relentless pushback, all eyes are on whether the refinery can sustain its momentum. Analysts and commentators are sharing their perspectives based on available data from relevant institutions. If anyone spreads false information, the truth will eventually come out
Dukawa is a journalist, public‑affairs analyst, and political commentator. He can be reached at [email protected]
Feature/OPED
Dangote, Monopoly Power, and Political Economy of Failure
By Blaise Udunze
Nigeria’s refining crisis is one of the country’s most enduring economic contradictions. Africa’s largest crude oil producer, strategically located on the Atlantic coast and home to over 200 million people, has for decades depended on imported refined petroleum products. This illogicality has drained foreign exchange, weakened the naira, distorted investment incentives, and hollowed out state institutions. Instead of catalysing industrialisation, Nigeria’s oil wealth became a mechanism for capital flight, rent-seeking, and institutional decay.
With the challenges surrounding the refining of crude oil, the establishment of Dangote Refinery signifies an important historic moment. The refinery promises to reduce fuel imports to a bare minimum, sustain foreign exchange growth, ensure there is constant fuel domestically, and strategically position Nigeria as a regional exporter of refined oil products if functioned at full capacity. Dangote Refinery symbolises what private capital, technology, and ambition can achieve in Africa following years of fuel queues, subsidy scandals, and global embarrassment.
Nigerians must have a rethink in the cause of celebration. Nigeria’s refining problem is not simply about capacity; it is about systems. Without addressing the policy failures and institutional weaknesses that made Dangote an exception rather than the rule, the country risks replacing one failure with another, this time cloaked in private-sector success.
For a fact, Nigeria desperately needs the emergence of Dangote refinery, and its success is in the national interest. Hence, this is not an argument against the Dangote Refinery. But history warns that structural failures are not solved by scale alone. Over the year, situations have shown that without competition and strong institutions, concentrated market power, whether public or private, can undermine price stability, energy security, and consumer welfare.
The Long Silence of Refinery Investments
Perhaps the most troubling question in Nigeria’s oil history is why none of the global oil majors like Shell, ExxonMobil, Chevron, Total, or Agip has built a major refinery in Nigeria for over four decades. These companies operated profitably in Nigeria, extracted their crude, and sold refined products back to the country, yet never committed capital to domestic refining.
Over the period, it has been shown that policy incoherence has been the cause, not a matter of technical incapacity, such as price controls, resistant licensing processes, subsidy arrears, frequent regulatory changes, and political interference, which made refining an unattractive investment. Importation, by contrast, offered quick returns, lower political risk, and guaranteed margins, often backed by government subsidies.
Nigeria carelessly designed a system that rather rewarded importers and punished refiners. Dangote did not succeed because the system improved; he succeeded despite it. His refinery exists largely because of the concessions from the government, exceptional financial capacity, political access, and a willingness to absorb risks that institutions should ordinarily mitigate. This raises a deeper concern; when institutions fail, progress becomes dependent on extraordinary individuals rather than predictable systems.
The Tragedy of NNPC Refineries
If private investors stayed away, Nigeria’s state-owned refineries should have filled the gap. Instead, the Port Harcourt, Warri, and Kaduna refineries became monuments to mismanagement. Records have shown that between 2010 and 2025, Nigeria reportedly wasted between $18 billion and $25 billion, over N11 trillion, just for Turn Around Maintenance and rehabilitation. Kaduna Refinery alone is estimated to have consumed over N2.2 trillion in a decade.
Despite these expenditures, output remained negligible. This was not merely a technical failure but a governance one. Contracts were poorly monitored, accountability was absent, and consequences were nonexistent. In functional systems, such outcomes trigger investigations, sanctions, and reforms. In Nigeria, the cycle simply repeated itself, eroding public trust and deepening dependence on imports.
Where Is BUA?
Dangote is not the only Nigerian conglomerate to announce refinery ambitions. In 2020, BUA Group unveiled plans for a 200,000-barrels-per-day refinery. Years later, progress remains unclear, timelines have shifted, and execution appears stalled.
This pattern is revealing. When multiple large investors struggle to translate plans into reality, the issue is not ambition but environment. Refinery projects in Nigeria appear viable only at a massive scale and with extraordinary political leverage. Smaller or mid-sized players are effectively crowded out, not by market forces, but by systemic dysfunction.
Policy Failure and the Singapore Comparison
Nigeria often aspires to emulate Singapore’s refining and petrochemical success. The comparison is instructive. Singapore has no crude oil, yet built one of the world’s most sophisticated refining hubs through consistent policy, investor protection, infrastructure planning, and regulatory certainty.
Nigeria chose a different path: price controls, subsidies, weak contract enforcement, and politically motivated policy reversals. Refineries became tools of patronage rather than productivity. Capital exited, infrastructure decayed, and import dependence deepened. The outcome was predictable.
The Cost of Import Dependence
For years, Nigeria spent billions of dollars annually importing petrol, diesel, and aviation fuel. This placed constant pressure on foreign reserves and the naira. Petrol subsidies alone were estimated at N4-N6 trillion per year, often exceeding national spending on health, education, or infrastructure.
Even after subsidy removal, legacy costs remain: distorted consumption patterns, weakened public finances, and entrenched interests built around importation. These interests did not disappear quietly.
Who Really Benefited from the Subsidy?
Although framed as pro-poor, fuel subsidies disproportionately benefited importers, traders, shipping firms, depot owners, financiers, and politically connected intermediaries. Smuggling across borders meant Nigerians subsidised fuel consumption in neighbouring countries.
Ordinary citizens received marginal relief at the pump but paid far more through inflation, deteriorating infrastructure, and underfunded public services. The subsidy system functioned less as social protection and more as elite redistribution.
The Traders’ Dilemma
Why did major fuel marketers like Oando invest in refineries abroad but not in Nigeria? Again, incentives explain behaviour. Importation offered faster returns, lower capital requirements, and political insulation. Domestic refining demanded long-term investment under unstable rules.
In an irrational system, rational actors optimise accordingly. Importation thrived not because it was efficient, but because policy made it so.
FDI and the Confidence Problem
Sustainable Foreign Direct Investment follows domestic confidence. When local investors, who best understand political and regulatory risks, avoid long-term industrial projects, foreign investors take note. Capital flows to environments with predictable pricing, rule of law, and policy consistency.
Nigeria’s challenge is not attracting speculative capital, but building conditions for patient, productive investment.
Dangote and the Monopoly Question
Dangote Refinery deserves credit. But scale brings power, and power demands oversight. If importers exit and no competing refineries emerge, Dangote could dominate refining, pricing, and supply. Nigeria’s experience with cement, where domestic production rose but prices soared due to limited competition, offers a cautionary tale.
Markets function best with competition. Without it, price manipulation, supply risks, and weakened energy security become real dangers, especially in countries with fragile regulatory institutions.
The Way Forward: Competition, Not Replacement
Nigeria does not need to weaken Dangote; it needs to multiply Dangotes. The goal should be a competitive refining ecosystem, not a replacement of a public monopoly with a private monopoly.
This requires transparent crude allocation, open access to pipelines and storage, fair pricing mechanisms, and strong antitrust enforcement. State refineries must either be professionally concessional or decisively restructured. Stalled projects like BUA’s should be unblocked, and modular refineries should be supported.
The Litmus Test
Nigeria’s refining crisis was decades in the making and cannot be solved by one refinery, however large. Dangote Refinery is a turning point, but only if embedded within systemic reform. Otherwise, Nigeria risks trading one form of dependency for another.
The true test is not whether Nigeria can refine fuel, but whether it can build fair, open, and resilient institutions that serve the public interest. In refining, as in democracy, excessive concentration of power is dangerous. Competition remains the strongest safeguard.
Blaise, a journalist and PR professional, writes from Lagos and can be reached via: [email protected]
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