Feature/OPED
Candidates from Djibouti, Kenya, Madagascar and Mauritius Contesting for AUC Chairperson’s Position
By Professor Maurice Okoli and Dr Ken Onyeali Ikpe
The African Union Chairperson is an important position within the African Union. The Chairperson serves as the head of the (AU) African Union elected by the assembly of heads of state and government. As the African Union stands at a crossroads and a critical juncture, effective leadership is essential for addressing the myriad challenges facing the African continent.
After several months of conscientious search for potential contestants to take over the African Union Commission chairperson’s position, which expires next February 2025, four (4) candidates have emerged representing Djibouti, Kenya, Madagascar and Mauritius.
With these candidates already confirmed following the deadline set for submission of applications and all the necessary supporting documents, four senior African politicians are engaged in an intensive campaign and strategic lobbying across Africa. The deadline for candidacies closed on August 6, at the African Union, which is headquartered in Addis Ababa, Ethiopia.
The African Union, a continental organization consisting of 55 African Member States, is scheduled to hold elections at its summit in February 2025 to choose a successor to Moussa Faki Mahamat, chairperson of the African Union Commission. The election is conducted by secret ballot, and the winner must secure a majority of two-thirds of the vote among eligible member states.
According to the stipulated guidelines, the chairperson of the African Union Commission (AUC) is the chief executive officer who exercises administrative, legal, and financial functions. It also includes pursuing a leadership role in delivering the continental vision of an integrated transformative economy, consistently working for a prosperous and peaceful Africa. The current geopolitical situation requires engaging in beneficial relations with external development partners for the continent.
Considered Africa’s economic engine since its establishment as OAU and later transformed into AU, the head of the AUC, which is an executive body, is elected on a rotational basis between the regions of the continent for every four years and the elected chairperson can be re-elected for two terms as incorporated in the constitution. Africa has five distinctive regions: northern, western, central, southern and eastern. Quite apart from regional origin, the candidates are required to have serious educational qualifications and, most importantly, experience to handle effectively the multiple tasks as the chairperson of the AUC. (See AU report: African Union Commission Elections 2025).
Contesting Candidates
From preliminary research and monitoring, the central, western, and southern regions of Africa have already served as chairpersons, this implies it is the turn of southern and eastern candidates of Africa. Concretely, it therefore includes Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Madagascar, Mauritius, Rwanda, Seychelles, Somalia, South Sudan, Sudan, Tanzania, and Uganda. These countries can now, by geographical definition, produce candidates for the position of chairperson. One of the basic key criteria is the candidate must be a former president, former prime minister, or former foreign minister to take up the job which mostly includes the undertaking of “measures aimed at promoting and popularizing the objectives of the Union” and the execution of “such other functions as may be determined by the Assembly or the Executive Council.”
According to an African Union report, in early August 2024, the four confirmed candidates for this top AUC position, and to ultimately take over from the current chairperson Moussa Faki Mahamat, are Mahamoud Ali Youssouf of Djibouti, Raila Odinga of Kenya, Richard Randriamandrato of Madagascar and Anil Gayan of Mauritius.
(i) Raila Odinga is a veteran Kenyan opposition leader, who now at 79, has tried and failed five times to become president, most recently losing the 2022 election to William Ruto. Odinga spent his years in politics, fighting for democracy during the autocratic rule of President Daniel Arap Moi. “We are focused on bringing the seat home for Kenya and serving the African people,” Odinga said on X while announcing his formal candidacy.
A media report released in March 2024, titled “Museveni Endorses Raila Odinga’s AU Chairperson Bid” and circulated in the East African region showed the publicity campaign and erratic steps at promoting Kenyan Raila Odinga to take over as Chairman of the AU Commission. Interestingly, Raila Odinga, Kenya’s opposition leader, has readily accepted Ugandan President Yoweri Museveni’s endorsement of his candidacy for African Union Commission chairperson.
In a flagship statement posted via his social media platforms, Odinga said Museveni endorsed him during a joint meeting with President William Ruto. The Azimio alliance’s leader stated that the joint meeting with President Museveni and President Ruto was organized at the Ugandan president’s invitation. Odinga has an unmistakable political influence. Born into a modest political family and grew up in politics. His profound perspectives suggest he operates as a pivotal figure within power dynamics and his decision-making capacity is perceived as absolute pragmatic. Odinga, most observers say, possesses an assertive leadership style and always expresses steadfast interest in the complexity of a development-oriented society. These leadership skills echo his deep-seated affection for a genuine communal, regional, and continental tradition. Odinga as a suitable candidate underscores the perfect choice to embrace and settle for the best administrator for Africa.
(ii) Richard Mahitsison Randriamandrato studied in Paris, France. Randriamandrato was Madagascar’s foreign minister from March to October 2022 but was fired after voting at the United Nations to condemn Russia’s annexations of four Ukrainian regions. Madagascar has followed a non-aligned position on the war in Ukraine. He is a prominent Malagasy politician known for his role in the government of Madagascar.
He served also as a minister of economy and finance from 2019 until 2021 where he focused on economic policies aimed at stabilizing and developing Madagascar’s economy. Beyond his ministerial roles, he has been involved in strategic foresight and economic intelligence advising on regional infrastructure and development projects.
(iii) Anil Gayan, 76, served as foreign minister of the Indian Ocean island nation of Mauritius between 1983 and 1986, and again from 2000 to 2003. After this, he has since held other posts including at the tourism and health ministries. His biography says Anil Gayan’s ancestors migrated from India when the island was a British colony. He studied law at the London School of Economics and the University of London until 1974. As a politician, he formed a political group called FNM (Front National Mauricien) in 2009. Along the line, in 2008, he was part of United Nations mediation in Guinea-Bissau. Gayan also led a 20-member African Union group of observers during the 2010 Rwanda elections.
(iv) Mahamoud Ali Youssouf, in April 2024, was nominated by Djibouti for the position of chairperson. His biography says that between 1985 and 1990, he studied foreign languages at the Lumière University Lyon and then studied business management at the University of Liverpool in the United Kingdom. He was, however, unsuccessful with his thesis at the Université libre de Bruxelles, Belgium.
Nevertheless, as a staunch politician, Youssouf believes that although Djibouti is a small country with a sizable port, his government hopes to develop its economy along the same lines as Dubai. Its strategic location serves as a conduit to the whole world. “I am the only candidate capable of bridging the gap between the different regions of Africa, being French-speaking, but also English-speaking and Arabic-speaking,” said Djibouti’s Youssouf, the 58-year-old has been the foreign minister of the tiny but strategic Horn of Africa nation since 2005. “My primary objective if I am elected is to silence the guns” on the continent, he told AFP in an interview in July.
Employment Implications
Bridging the gap between different regions implies that this AUC leadership will address the development dynamics in the continent. That further emphasizes creating a conducive environment and atmosphere for potential external investors and stakeholders within the geopolitical parameters, a mixed economy, speeding up the most industrialization processes, and working towards technological advancement in Africa. (See African Leaders Extraordinary Summit report, Feb. 2024)
Noticeably the republics of Burkina Faso, Chad, Niger and Mali have established governments, accused their previous political leaders of manipulation by external powers, economic under-developments and the deepening instability (that is un-quantify-able failure to stem the Islamist insurgency) in the Sahel-Saharan region, an elongated landlocked territory located between North Africa (Maghreb) and West Africa, to the Atlantic coast of West Africa.
During a series of summits, conferences and meetings that proliferated these years, the AUC reiterated the continuing growth of multiple democratic challenges with a wider negative impact across the continent and particularly itemized military takeovers that have become a distinctive feature (or accepted norm) of regime change in West Africa. Some experts pointed to the rising neo-colonial tendencies perpetrated by the former colonies and their indiscriminate scramble for resources on the continent. In addition, there are also overarching narratives of growing crisis and explicit signs of weaknesses on the side of regional economic blocs in the continent, to say the least, and appropriately under the direct confines of the African Union.
Researchers have reminded the African Union and the Economic Community of West African States (ECOWAS) to invoke the African Convention for the Elimination of Mercenary, which went into effect in 1985, prohibiting states from allowing mercenaries into their territories. The researcher further called for addressing promptly ‘malign influences’ and ‘political manipulations’, and bringing back the well-designed legislative measure broadly worded by the Assembly of the African Union which adopted as a strategic document known as the “AU Master Roadmap (AUMR) of Practical Steps to Silencing the Guns in Africa” in 2017. (See African Union report, April 2017)
A peaceful continent is possible. This aspiration inspired the ‘Silencing the Guns in Africa’ agenda, a flagship initiative of the AU Agenda 2063 that aspires to end all wars, conflict and gender-based violence, and to prevent genocide. As a long-standing partner, the United Nations Development Programme (UNDP), for instance, has seriously recommitted its partnerships and opportunities to further the Silencing the Guns agenda as a necessary condition for Africa’s transformative development. This focuses on the people, prosperity and peace as a basis for its contributions to AU’s aspirations across Africa, according to the UNDP’s report re-issued in February 2022.
Professor Sergiu Mișcoiu at the Faculty of European Studies, Babes-Bolyai University in Cluj-Napoca (Romania), where he serves as a Director of the Centre for International Cooperation and as Director of the Centre for African Studies, noted in an article to Global Research, that African countries are bound to wake up to a common understanding of the true meaning of their colonial past for the present and determine their future existence. In fact, the leaders and the elites have to engage in development decision-making processes, and at the same time have to play their roles as autonomous actors instead of being pawns in global politics.
Mahamat’s Strengths and Weaknesses
In my view, analyzing most of the media reports and arguments, indicated this year the role is reserved for a representative from East Africa to replace Moussa Mahamat, a veteran politician from the Republic of Chad in West Africa, who has served two terms since 2017. Before taking up this position, he was the foreign minister of Chad. As the history of the procedures indicates, the elected chairperson becomes the head of the African Union Commission. Mahamat, born on 21 June 1960, was for the first time elected as the chairperson on 30 January 2017 but assumed office in March 2017. The chairperson is elected by the Assembly for a four-year term, renewable once. During his eight years of leadership, holding executive powers, needed internal structural reforms that have popularly been called for were not simply carried out, and a record of publicly announced accomplishments grossly lacked probity and transparent accountability.
Despite that as mentioned above, the African Union under Moussa Mahamat has made several achievements including raising the continental external relations profile and its ascension into the Group of Twenty (G20). In September 2023, Prime Minister Narendra Modi of India, chairing the G20 summit, the G20 nations agreed to grant the African Union permanent membership status in an appreciable move aimed at offering the continent a stronger voice on important questions and to uplift its unto the higher stage. In its final declaration in New Delhi, the G20 granted the African Union a full-fledged membership. The G20 consists of 19 countries and the European Union, making up about 85 per cent of the global GDP and two-thirds of the world’s population.
Under the administration of Moussa Mahamat, the African Continental Free Trade Area (AfCFTA), the single continental market has the potential to unite an estimated 1.4 billion people in a $2.5 trillion economic bloc. The AfCFTA opens up more tremendous opportunities for both local African and foreign investors from around the world. It aims at making Africa the largest common market in the world and accelerating continental integration. It is expected to reinforce the measures taken in terms of the free movement of persons, goods, and services across borders. But much depends on the collective determination and solidarity demonstrated, to face the challenges in a united and resolute manner, by the African leaders. It depends on the strong mobilization of African leaders and the effective coordination provided by the African Union.
Essential Leadership Attitudes
In mid-July 2024, Business & Financial Times wrote that the candidates were discreetly campaigning for the top position. The B&FT media indicated further that, despite the general qualification being former foreign ministers, and in the case of Odinga being an experienced politician and readily preferred by the majority of African leaders, some other distinguishing leadership attitude and approach are necessary and required of the candidate. Education is the cornerstone for awareness, but one of the crucial qualities that a leader must possess is the inherent positive notion of servitude, in addition to commitment to the organization’s future aspirations.
As the incoming chairperson prepares to take on the baton, it is important to look forward with optimism, eager to continue making an impact in new ways, within the geopolitical context, and be ready to strategize broadly with key stakeholders and external powers. Pragmatism should be the catch-word while ensuring pragmatic acknowledgement of the potential to drive progress and actionable initiatives. Step away from excessive symbolism and superficial (shallow) influence instead of an invaluable and impactful engagement or relations.
AU is a multilateral body, and in this critical moment for the continent plagued by high youth unemployment, weak institutions and political instability, the new leader must have the spirit of innovation, dynamism and a forward-thinking vision. Professor (Ambassador) Edward Boateng, business executive and politician, in an opinion article, listed some of the criteria for the ideal AU head as follows: (i) Inter-generational bridge: Capability to bridge generational divides within the AU, fostering inter-generational dialogue and including the perspectives of all age groups in policy-making processes.
(ii) Conflict resolution: Strong leadership in addressing conflicts and crises effectively, with a coherent strategy for conflict resolution across the continent.
(iii) Institutional reforms: Commitment to spearheading institutional reforms, enhancing financial sustainability and streamlining decision-making processes to address the AU’s bureaucratic challenges.
(iv) Economic development: Drive economic reforms, attract investment and foster a business-friendly environment to tap into Africa’s vast resources and young population.
(v) Empowerment of women and youth: Promotion of policies that enhance gender equality and provide opportunities for young people to participate in governance and economic activities.
Opening New Chapter
A new chapter characterizing plethoric changes is, however, expected under the next chairperson beginning in March 2025. Arguments for several changes are necessary to make the continental organization work more effectively and produce tangible results especially now within the context of global reconfiguration. Africa is too diverse to fit together. But there are many more interests in uniting the continent. But the political, economic, and cultural diversities have to be transformed into continental strength to ensure development and growth, instead of a noticeable display of weaknesses and passive actions. It is often repeatedly claimed that the African Union needs urgent realistic reforms and some kind of rebranding of its structure as an effective instrument for rapid development, new economic architecture, and substantial growth.
In late January 2024, Rwandan President Paul Kagamé was appointed to lead the AU institutional reforms process. It was an important step towards implementing its institutional reforms, setting the Pan-African organization’s objectives under the leadership of the Heads of State who meet once a year at the Assembly. As Africa faces a multitude and multitude of crises, so also unstoppable debates have dominated inside Africa and on international platforms over the performance of the 55-member organization, its existing challenges, and the way forward in the fast-changing world.
Appropriately four candidates were short-listed for the position based on the fact that East and Southern Africa now have their turn. But at a glance, Odinga seemingly envisions carving out a new distinctive image for the African Union. His high-value knowledge and experiences, corporate business entrepreneurialism combined with pragmatic new economic development thinking would probably save Africa. Narratives too indicated that Odinga would adopt a far-reaching overhauled approach and take unshakable measures toward most significant issues across Africa. These are essential conditions for re-imaging the AU’s future.
An in-depth analysis shows us that there should be four structural directions, in particular, to address by the next AUC chairperson: (1) investment in the economic sphere; (2) increased cooperation in the security field, and; (3) a shared vision of international and regional issues, and (4) on the social and humanitarian sphere. These represent the significant aspects of the Sustainable Development Goals (SDGs) in Africa. Therefore, the AU has to take up the task of developing collective approaches to the problems of maintaining peace and security, strengthening democratic processes, developing human potential, and ensuring socio-economic growth.
In a final summary, the AU’s vision is to accelerate progress, and spearhead development and integration in close collaboration with all members. These are incorporated into a single continental development program often referred to as the AU Agenda 2063.
Professor Maurice Okoli is a fellow at the Institute for African Studies and the Institute of World Economy and International Relations, Russian Academy of Sciences. He is also a fellow at the North-Eastern Federal University of Russia. He is an expert at the Roscongress Foundation and the Valdai Discussion Club. As an academic researcher and economist with a keen interest in current geopolitical changes and the emerging world order, Maurice Okoli frequently contributes articles for publication in reputable media portals on different aspects of the interconnection between developing and developed countries, particularly in Asia, Africa and Europe. With comments and suggestions, he can be reached via email: [email protected].
Dr Ken Onyeali Ikpe is the former Group CEO of Insight Redefini Group, Sub-Saharan Africa’s biggest Marketing Communications & Consumer Consulting Group. He holds a Ph.D and was trained at IESE Business School in Barcelona, Spain.
Feature/OPED
Ledig at One: The Year We Turned Stablecoins Into Real Liquidity for the Real World
Ever tried sending a large amount of money into or out of certain markets and felt your stomach twist a bit? That was the feeling many companies carried long before Ledig existed. Delays. Guesswork. Phone calls that sounded unsure. People waiting on people, and no reliable derivatives hedging protocol to shield them from currency swings. It was messy.
That frustration is what pushed us to open Ledig to the world a year ago. We wanted a system built for big transfers. Not a few hundred dollars. Serious amounts. A hundred thousand. A million. Even more. And we wanted it to move in seconds, not a strange timeline that no one could explain.
So, we built a setup that lets companies bring in stablecoins and get local currency out quickly. We also kept the opposite direction just as clean. Local currency in, stablecoins out. Both ways needed to feel the same because business doesn’t move in only one direction. Some clients even switch between the two during the same week.
In the early days, people sent smaller amounts to test us. Fair enough. But once they saw a large payment settle almost instantly, confidence spread. This is how we crossed our first $100M. Most of that came from global companies working across Africa and other emerging markets. These firms care about stability, not buzzwords. They just want their money to land where it should.
A lot of the magic sits behind the scenes. Wallets. Local settlement tools. A solid FX engine that adjusts as needed. None of this appears on the surface. All a user sees is a simple dashboard or a set of API calls that get the job done. They don’t even need to think about crypto. The tech exists under the hood, doing the heavy lifting quietly.
But fast movement alone wasn’t enough.
Ledig derivatives hedging protocol
There was another problem staring companies in the face. Currency swings. And they hurt. Imagine finishing a project today and waiting ninety days to get paid in a currency that drops often. By the time the company receives the money, the value has fallen so much that the profit is almost gone. This is a real issue, and many firms have lived through that shock.
This is where our derivatives hedging protocol stepped in. It lets companies lock in their value early so they don’t get caught off guard later. The product ran off-chain at first and still passed $55M in activity. Now we’re taking the derivatives hedging protocol fully on-chain. We picked Base for this next step because it fits the type of stablecoins our settlement system relies on. It also gives companies a clean, transparent environment to execute derivatives hedging protocol strategies built for actual commercial needs rather than trading games.
It took time to get here. Our team is small, which surprised a lot of people, but that worked in our favour. We avoided noise. We focused on building pieces that work. Think of it like a set of tools. One tool converts stable to fiat. Another handles fiat to stable. Another manages FX. Another supports treasury. Another delivers hedging to protect value. Each tool works alone, but when a company puts them together, they get a full workbench that covers money movement and risk in one place.
We rarely talk about revenue publicly, but the business is in a good place. The real sign of health is that companies keep trusting us with large transactions. Not one-off tests. Proper flows. The kind that supports payrolls, suppliers, expansion, and daily operations. In markets where delays can break everything, this matters.
Looking ahead, our focus for 2026 is simple. Bring the derivatives hedging protocol on-chain at scale. Grow our liquidity pipeline so larger payments stay just as smooth as they are today. Strengthen our licensing and regulatory setup, so bigger institutions can work with us without extra steps. And continue tightening the entire system so companies entering emerging markets can do it with far less stress.
Ledig is one year old. The mission is still the same. Move large amounts of money fast. Protect companies from painful currency swings using a battle-tested derivatives hedging protocol. Build tools they can rely on without worrying about how the background tech works.
This is just the beginning.
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]
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