Connect with us

Feature/OPED

How Rich Mega Churches in Nigeria Pay Pastors Poor Salaries

Published

on

By Dipo Olowookere

An investigation carried out by SUNDAY PUNCH has shown that many of Nigeria’s mega rich churches pay their pastors poor wages, reports SUNDAY ABORISADE

An extensive investigation carried out by SUNDAY PUNCH has revealed that many of the country’s prosperity-preaching, super-rich mega churches pay their pastors poor wages. The newspaper’s findings revealed that a substantial majority of the pastors engaged by the churches, who are polytechnic and university graduates, earn between N25,000 and N45,000 a month.

According to our correspondent’s findings, full-time pastors, in addition to preaching and teaching during midweek services and Sunday services are also expected to perform other sundry duties that leave them with little time for other business endeavours.

Some of the churches reviewed were the Redeemed Christian Church of God, the Living Faith World Outreach, popularly known as Winners Chapel, Mountain of Fire and Miracles Ministries, the Deeper Christian Life Ministry (an holiness church that has of late embraced economic empowerment themes), Christ Embassy International and Lord Chosen Charismatic Revival Ministries.

Nigeria is home to several Christian denominations broadly categorised as orthodox and unorthodox churches. But a clearer categorisation of churches is the one adopted by the Christian Association of Nigeria. It divides churches in Nigeria into five broad categories. According to the CAN website, the groups are the Catholic Secretariat of Nigeria; Christian Council of Nigeria, comprising the Anglican, Methodist, Baptist, Foursquare, Presbyterian, Eternal Sacred Order of C&S, Church of the Lord Aladura and other orthodox Churches; the   Christian Pentecostal Fellowship of Nigeria and the Pentecostal Fellowship of Nigeria; Organisation of African Instituted Churches; and ECWA – Evangelical Church of West Africa and Northern-Nigerian churches like COCIN, HKAN NKST, Christian Assemblies, LCCN etc.

In recent years, the Pentecostals, especially Pentecostal groups that preach faith, miracles and prosperity, have come to symbolise the face of Nigerian Christianity to the world. In addition to their huge memberships, running into tens of millions, these churches are also widely known because of their jet-set senior pastors and the businesses they run. These churches own primary and secondary schools and universities, micro-finance banks, foods and beverages companies, huge agricultural farms, sports teams, printing firms and so on.

Their senior pastors are known to be extremely wealthy, own private jets, maintain luxury homes in the country and abroad, and send their children to some of the best schools in the world.

However, the parish pastors of some of the biggest churches in the country, who spoke to our correspondent, painted a picture that showed that they live in a different world from their senior pastors.

Our correspondent noted that the clergymen spoke reluctantly for the fear of losing their jobs. Efforts made by our correspondent to ascertain the financial health of the churches were unsuccessful as the churches are known not to make their financial reports public, neither are they made available to their members.

The Redeemed Christian Church of God

The RCCG is one of the country’s biggest Pentecostal churches. It has a group of primary and secondary schools spread all over the country. The schools are Redeemer’s International School, Redeemer’s International Secondary School, Redeemer’s High School and Christ the Redeemer’s College. The church also owns Redeemer’s University, Haggai Mortgage Finance Bank, Lifeway Radio, Dove Media, Redemption Light Printing Press, hospitals, among others.

The most senior pastor of the church, Pastor Enoch Adeboye, a former university lecturer, is known to be humble and simple in taste, but he is also reputed to fly a private jet said to have been given to him by the members of the church.

At the RCCG, newly ordained full-time pastors with National Diplomas are currently being paid N25,000 a month while their counterparts with a university degree receive N35,000 as their monthly salaries. SUNDAY PUNCH gathered that in some RCCG churches with small congregations, parish pastors sometimes use personal funds every Sunday to run their local churches.

Sources in the church, who disclosed this to our correspondents in various states across the country, further explained that a full-time area pastor earns a minimum monthly salary of N40,000 while a full-time provincial pastor is entitled to a minimum monthly salary of N85, 000. According to the church’s structure, an area pastor is in charge of about five or six parishes while a provincial pastor is in charge of about 100 parishes or a state.

A pastor in Lagos, who spoke to our correspondent, said tithes (10 per cent) of their salaries were usually deducted before salaries were paid.

However, the pastor refused to be drawn into a detailed explanation of how he makes ends meet on such a salary.  He said, “The job of a pastor is a sacrificial one, no doubt, but what we are paid cannot ordinarily sustain us. The money is definitely not enough to meet our needs even with our access to loans and free accommodation provided by the church.

“Our parish members are most supportive and I encourage my wife to work. Some of our wives own small-scale businesses or crèches.”

The pastors said that members of the parishes are expected to generously support the upkeep of the pastor’s families and provide “comfortable accommodation” for them. They also added that the RCCG paid half of their children’s tuition fees in schools established by the ministry.

Further investigations revealed that the RCCG is cutting the costs of running its various missions by encouraging born-again and well-trained members to lead the parishes, zones and provinces on a part-time basis.

Attempts to get the official position of the church on the welfare of its pastors failed as a member of the church’s media team, Olanike Olaomo, told our correspondent that she was not competent to speak on the issue, when contacted on phone.

She also refused to give out the phone number of the head of the team.

“If you ask for my candid opinion, I will tell you to drop your story because no one will give you the information you are requesting for,” she said.

Mountain of Fire and Miracles Ministries

Mountain of Fire and Miracles Ministries is a prayer-themed ministry led by Dr. Daniel Olukoya. It has hundreds of branches in Nigeria and beyond. The church runs school groups, comprising Mountain Top Nursery and Primary schools, Mountain Top Secondary schools, Mountain Top University, a printing press, among others.

Majority of the ministers operate on full-time basis. A source told SUNDAY PUNCH that the church operates a “central salary scale for pastors working in God’s vineyard at the church’s branch, zonal and regional levels.”

The salary scheme for the clerics ranges from N25,000 to N80,000 depending on the level of their deployment.

A pastor in a branch of the church in Abuja, who could not be named because he was not authorised to give any information on the matter, said that clerics in the church’s branches averagely earned between N20,000 and N25,000 monthly. He, however, added   that pastors were also supported by “benevolent church members.”

The pastor said, “The salary is paid by the region under which the branch is with strict directive from the headquarters since the amount payable monthly is structured. But there are also few newly ordained ministers who assist pastors-in-charge at zones and regions during deliverance programmes. These set of ministers get about N15,000 monthly.”

Also, a zonal pastor with the church in Abuja, who did not want to be named, told our correspondent that the salary for his category was between N40,000 and N45,000.

It was gathered that the church, either at the level of branch, zonal or regional was expected to provide accommodation for its pastor.

The support for accommodation, it was learnt, could come from the region under which the branch operates if such a branch was unable to bear the burden alone.

Another pastor, who pleaded anonymity, said they survived through what he described as the ‘the grace of God and the support of children of God.’

He disclosed that having chosen to work for God, they look beyond material comfort and fix their gaze on the reward from above.

“There are other supports from the church in terms of education for our children. Since the church has a school, there is a provision for a certain percentage of the tuition fees to be waived for pastors’ children. I have yet started to enjoy the privilege because my children are still young. When they start going to school, I will also benefit from it,’’ he stated.

For pastors in the regional arms of the church, they get about N80,000 monthly according to a pastor in one of the church’s branches in Benin City, Edo State, who refused to be named.

When contacted, the Chairman, Media Committee, MFM, Pastor Oladele Bank-Olemoh, said though he could not specifically say the amount each of the pastors in the church gets as salary, the general overseer takes their welfare seriously.

Pastor Bank-Olemoh said, “The general overseer takes care of them very well. He caters for their accommodation, school fees of their children and gives them money personally. Those who abide by the vision of the church and support the general overseer know that he does not joke with the welfare of the ministers.

“Every minister in the MFM knows that if you are conscientious and diligent, you will be blessed. The money you take as salary is nothing but the blessing is the most important.  You can earn so much and still not be able to do anything with it. That is what we call pocket with holes. The general overseer is passionate about the welfare of the pastors.’’

The Living Faith Church Worldwide

Winners Chapel, one of the foremost and most popular Pentecostal churches in Nigeria has a chain of about 30 secondary schools and 50 primary schools and two universities, Covenant University and Landmark University. Owned by Bishop David Oyedepo, who is famed for owning a private jet, the church also owns one of the country’s biggest and most sophisticated printing firms, Dominion Publishing House, Hebron Bottled Water, bottled water processing plant, a bakery, various restaurants and stores, among others.

Investigations by our correspondents in the South-West revealed that a newly-ordained pastor outside Lagos in Winners Chapel receives N35,000 as monthly salary while new pastors in Lagos earn between N45,000 and N55,000. An area pastor with some years of experience collects N85,000 per month while a resident pastor (state pastor) now collects N200,000 per month.

Some area pastors who spoke with our correspondents, strictly on condition of anonymity, explained that pastors could earn more depending on their years of experience.

One of them said, “Apart from the salaries, pastors are usually well taken care of by members of their local assemblies. Pastors-offering is encouraged and a pastor could get more than his salary as offering from just a member in a day.”

Believers LoveWorld

SUNDAY PUNCH investigations revealed that most pastors of the Believers LoveWorld, a.k.a Christ Embassy, owned by Pastor Chris Oyakhilome, are engaged on part-time basis while the few ones on full-time appointments are paid like other workers in the ministry.

A part-time pastor of the church in the Ikeja area of Lagos State and another one in the Bodija area of Ibadan, in Oyo State confided in our correspondents that most of their full-time pastors are in the headquarters.

They said a newly-ordained pastor earns about N40,000 but that only the headquarters could provide further details.

When contacted, the Believers LoveWorld officials declined to make comments on the welfare of their pastors.

A representative of the church attached to a church in Lekki reprimanded our correspondent for “picking a phone number from the website” and added that it was “wrong.”

Another representative of the church, identified simply as Pastor Mercy of the Prayer and Counselling Centre at the church headquarters, said she was not authorised to speak to the media about issues relating to the church.

She also refused to give out the contact number of the spokesperson of the church because of the sensitive nature of the information requested.

Deeper Christian Life Ministry

Popularly called Deeper Life, the church was founded by Pastor William Kumuyi. Widely known for its strict conservativism, the church, in recent times, has embraced economic-empowerment and Christian prosperity themes, while not letting go of its conservatism. With millions of members and thousands of branches in Nigeria and other parts of the world, it owns Life Press Limited, Deeper Life Nursery and Primary School, Deeper Life High School, Anchor University, among others.

A top member of the church told one of our correspondents that 95 per cent of its members in Lagos are part-time workers who receive no salary.

He said, “Most of the church’s full-time workers are not in Lagos. They have jobs so they don’t have to rely on church district members. The church encourages its pastors to work, so full time pastors are a rarity. The most the part-time pastors get is N5, 000 for recharge cards monthly.”

SUNDAY PUNCH gathered that outside Lagos, the church have three categories of pastors. Part-time pastors do not earn salaries, they are said to be ‘taken care of by their local parishes’.

A long-time member of the church said, “Our pastors who are volunteer full-time pastors are not on the payroll of the church. The local church where they belong to may then decide to give them out of the offering but the tithe goes to the central (unit).”

The last category of pastors, he added, are those who are overseers and senior pastors and their salaries range from N2.5m to N6m per annum.”

The phone number of the Secretary, Deeper Life Bible Church, Pastor Jerry Asemota, who is the only person authorised to speak on official issues, was switched off when our correspondent contacted him on Saturday.

Lord’s Chosen Charismatic Revival Ministries

Investigations by SUNDAY PUNCH revealed that there is no salary structure for pastors of the Lord Chosen Charismatic Revival Ministries, founded by Pastor Lazarus Muoka.

The church runs various primary and secondary schools while it also has a few standard private hospitals.

A leader of the church, who spoke with one of our correspondents, explained that when a new pastor is ordained and ‘given a pulpit’ (put in charge of a branch), he is entitled to one-tenth of whatever income that the church generates every week.

He said, “We don’t have a structured salary system for our pastors. They are paid based on the money they generate from tithes and offerings. However, the headquarters usually give a considerable amount to their wives to set up a small business.

“It is expected that the proceeds from the wife’s business will be used to augment the family’s upkeep. Also, the church ensures that all the pastors’ biological children enjoy free education at all the Lord’s Chosen primary and secondary schools.

“The church also arranges scholarship for the pastors’ children in their various higher institutions.”

The church leader added that the pastor’s family could also benefit from the welfare offering, usually meant for the needy, based on the discretion of the committee handling the fund.

When our correspondent called the land line on the website of the church, it did not connect while top church members kept sealed lips.

CAN, PFN react

Speaking in a telephone interview with one of our correspondents on Saturday, the Director, Media and Public Relations of PFN, Simbo Olorunfemi, said pastors’ welfare is part of the issues that would be discussed at the group’s forthcoming biennial conference, scheduled to hold in Edo State.

“The welfare of pastors and indeed Nigerians generally concerns the PFN. This is part of the issues to be discussed at the forthcoming conference. The PFN will make recommendations and suggestions that would enhance the welfare of pastors to fulfill their duties effectively,” he told SUNDAY PUNCH.

The General Secretary of the Christian Association of Nigeria, Rev. Musa Asake, however told SUNDAY PUNCH that how much mega churches paid their pastors as salaries was not the business of the association.

“The Christian Association of Nigeria does not dabble into how much churches pay their pastors. It is not the mandate of the association to do so. As an association, CAN doesn’t discuss issues like that; we do not discuss doctrines. That is left for individual churches to decide. If there are issues about how much pastors earn as salaries in their churches I think the headquarters of the churches should be able to respond to that. It is not the business of CAN to look into how much churches pay their pastors,” Asake told one of our correspondents.

http://punchng.com/revealed-nigerias-rich-mega-churches-pay-pastors-poor-salaries/

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

Advertisement
1 Comment

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Feature/OPED

If You Understand Nigeria, You Fit Craze

Published

on

confusion nigeria

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.

Continue Reading

Feature/OPED

Post-Farouk Era: Will Dangote Refinery Maintain Its Momentum?

Published

on

dangote farouk ahmed

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]

Continue Reading

Feature/OPED

Dangote, Monopoly Power, and Political Economy of Failure

Published

on

Dangote monopoly 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]

Continue Reading

Trending