Feature/OPED
Esan Traditional Marriage and Taboos
By Prince Kelly O. Udebhulu
Esan people value their children, male or female, this is why unlike some cultures; the bride price is very low. The payment of bride price is vital to the conclusion of marriage notable under Esan native law, which like any other customary law marriage in Nigeria; it is recognized under the Marriage Act.
The impression being that Esan people do not sell their daughters in marriage, the requested amount for bride price is usually meagre; N24 (representing 24 cowries or British pounds used in the pre-colonial and colonial days).
A huge sum is usually presented these days, from which the prominent members of the bride’s family would remove a small amount and refund the balance to the groom for his wife, their daughter`s up keeping.
A calculated message to the groom that she is still considered a family daughter even though she is married, hence the tradition that at death, the corpse of Esan woman is returned to her family to be buried with her ancestors.
We have two major types of marriage in Esan Land:
-Monogamy- A marriage of one man to one woman,
-and Polygamy- A marriage of one man to two or more wives.
Marriage also known as matrimony is a socially or ritually recognized union or legal marriage contract between two individuals that establish obligations and rights between them and their children and in-laws.
However, the concept of marriage is not a new practice and it has been a part of our society since ancient times. Marriage is a universally accepted social institution, but the types of marriages practiced in the world can be diverse. Different societies and cultures have different religious beliefs and practices for the recognition of a relationship.
In the days of our fore-fathers in Esan tradition and culture, a woman married another woman (Stylish lesbianism) but the only different to the modern day lesbianism is that the wife (woman) had children through a calculated and arranged mechanism and channel whereby an opposite sèx visited nocturnally or vice-versa in a more clandestinely MOU with the husband (woman) and children from the wife answered the husband’s (woman) name as surname. Not adopted children as in the modern days lèsbianism. It mainly happened then under a scenario whereby an acclaimed wealthy woman in the community happened to be a barren woman and she decided to have children of her own so that her lineage continued after her demise.
It worthy of note that all due responsibilities and accountabilities as a wife and husband with the exception of having sèxual intercourse abound in this type of marriage.
Just as it is difficult to ascertain the actual opposite sèx who fertilized the wife of a barren man as often happened under and after a mutual family rite (ritual) that allowed the said wife of a barren man to extend her legs to outsider besides her betrothed husband, so it was under the practice of woman married woman in those days in our history.
Traditional marriage is usually an arrangement between two families as opposed to an arrangement between two individuals.
Accordingly, there is mutual requirement from the bride and bridegroom to make the marriage work as any problem will usually affect both families and strain the otherwise cordial relationship between them.
The man usually pays the bride-price and is thus considered the head of the family. Adultery is acceptable for men, but forbidden for women.
Marriage ceremonies vary among Esan Clans
Prior 1897, girls were generally regarded as ready for marriage between the ages of 15 through 18. Courtship can begin among the individuals during the trip to the river to fetch water or during the moonlight play – EVIONTOI.
Sometimes parents actually go looking for a wife or husband for their children. This led to the BETROTHAL SYSTEM where marriage were conducted with or without the consent of the individuals involved. Sometimes such betrothal, took place when a baby girl was born. Suitors would begin to approach the parents by sending a log of wood or bundle of yam to the parents of the child. You are likely to hear statements such as -” Imu’ Ikerhan gboto”-I have dropped a log of firewood. When a boy decides to get married and the parents have accepted the bride as a prospective daughter-in-law, messages go up and down between the two families. This is called IVBUOMO-SEEKING FOR A BRIDE.
Series of investigations are conducted by both families – about disease, scandals and crimes which may affect the families. The term of the marriage which of course may include the pride-price would be settled in some families. Gifts for mother of the bride and IROGHAE- members of the extended family would be part of the settlement. Then a date would be set for the ceremony which would take place in the home of the woman’s family. This was called IWANIEN OMO in the old days the go-between for the two families must be somebody well known by both families. There would of course be a lot of merriment on the day of marriage when the bride and the bridegroom are presented openly to the two families.
Kola nuts and wine are presented. The OKA EGBE of the woman’s family would normally preside over the ceremony. Prayers are said and kola nuts broken at the family shrine. Rituals vary from family to family. The woman always sits on her father’s lap before she is given away. Amidst prayers, laughter and sometimes tears, the woman would be carefully hoisted on the lap of the OKA EGBE of the bride’s family.
Many years ago, the woman would be sent to the bridegroom house about thirteen days after IWANIEN OMO and gingerly hoisted either on her husband’s lap or the OKAEGBE of his family. They are done immediately nowadays in the home of the bridegroom. The bride, now known as OVBIOHA would be led by her relatives to the husband’s house with all her property meanwhile the family and friends of the bridegroom are feasting, drinking, singing and dancing while waiting for the bride to arrive.
As the family and friends of the bridegroom awaits the OVBIOHA, messages will arrive suggesting that there are UGHUNGHUN-barriers on the road. The bridegroom has to remove the barriers by sending money to the party, bringing the wife to him or else the wife will not arrive. As they approach the house of the bridegroom, you can hear the echo of OVBIOHA GHA MIEN ARO-ARO, meaning “Bride! Be proud/ the Bride is proud.” Arrival at the bridegroom’s house is immediately followed by the ceremony of IKPOBO-OVBIOHA-washing of the bride’s hands. A bowl of water with money in it would be brought out. A woman in the groom’s family, sometimes his senior wife would bring out a new head tie, wash the hand of the Ovbioha in the bowl and dries her hand with the head tie. Both the new head tie and the money in the bowl belong to the bride.
A few days later, the bride would be taken to the family altar and prayers are said for her. She undergoes what is called the IGBIKHIAVBO ceremony-beating of OKRO on the flat mortar. This would be followed by a visit by the bride’s mother-in-law and other female members of the family to the newlywed, if they are not living in the same house. She would demand the bed spread on which they both slept when they had their “first sèxual relationship” after the wedding and if the bed-spread was stained with blood, the bride was regarded as a vìrgin and as such she would be given many presents including money. If it is proven that she was not a vìrgin, then the preparation for the ceremony of IVIHEN-OATH TAKING ceremony would be set in motion.
First, she has to confess to the older women, the “other men” in her life before she got married. The husband would never be told any of her confessions, then, she would be summoned to the family shrine early in the morning, without warning to take an oath of FIDELITY, FAITHFULNESS, TRUSTWORTHINESS, HONESTY ETC, to her husband and family. This ceremony is the equivalent of the oath people take in the church, mosque or marriage registry. Once the oath taking ceremony is over, she would be fully accepted back into the family and immediately becomes married not only to her husband but to the family and sometimes to the community.
Christianity, Islam and Westernization of today have weakened the Edo traditional system of marriage. The traditional ceremony is sometimes done the same day with many of the rituals avoided in the name of Christianity or Islam and many women would rather die than take the oath we described above. It was the oath that kept Edo women out of prostitution for many years; thus making the Edo women in general to be regarded as very faithful, trustworthy, honest with strong fidelity to their husbands making neighbouring tribes want them as wives. It also made divorce on the ground of adultery, less common in those days.
TABOOS WHEN YOU MARRY AN ESAN MAN
There are “don’ts and dos” in Esan marriages but some are enumerated below.
When a woman is married to an Esan man, it is an abomination for another man to touch her wrapper, else it is considered as though she has committed adultery unless the married woman shouts at the man or reports to her husband.
– When a woman commits adultery, she will lose her children and her life as repercussion for the abominable act unless she confesses and as restitution, she is striped completely unclad, her head is shaved, a part of her private part is shaved, one of her armpits is shaved and both of her hands are tied behind her, while a basket full of trash is placed on her head. She is then paraded around the community by other women.
– If this is not done and the woman goes ahead to cook for her children, her children will die one after the other including her. If she also confesses to her husband and out of love or pity her husband conceals the confession, he will die within a week, if he eats a meal cooked by the woman.
– It is a taboo for another man to cross an outstretched legs of a married woman else it is considered as though she already had sèx with the man.
– A married woman cannot steal her husband’s money in Esan land as it is seen as an abomination. She must tell him about it.
– It is considered an abomination for a man to sit on the matrimonial bed of an Esan couple as it is seen as a taboo.
– It is also an abomination for a woman to spit on her husband under any circumstance. If she does, she must sacrifice a fowl to appease him but the man can bathe his wife with his own spit.
– It is seen as an abomination for an Esan man to use the same bathing bucket with his wife but due to widespread Christianity, this taboo has almost gone into extinction.
– The husband of a woman who just gave birth must stay away from her sèxually for three months as she’s considered unclean because of the after delivery blood she discharges.
On list of requirements to marriage, contact your would-be in-laws as it varies from family to family.
Ref: Dr. C. Okojie.
- Joy.
Esan historians.
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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