Feature/OPED
The Sochi Summit and the Pride of Africa
By Kester Kenn Klomegah
After nearly three decades of extremely low political, economic and cultural engagement, Russia is indeed returning to Africa. For obvious reasons, Russia’s relations with Africa turned extremely worse as some diplomatic representations were unexpectedly cut, all cultural centers closed, and many projects were suspended. Of course, relations with many foreign countries have faded into the background compared with the challenges the country had to deal with in order to preserve its statehood.
Understandably, Russia has had to struggle with its post-Soviet internal and external problems especially during the first decade, from 1991 till 2000, which has been described by policy experts as the “Lost Decade on Africa”.
Still the second decade, 2000 to 2010, saw the reawakening with decades among the Kremlin, Government officials and academic researchers debated consistently whether “Russia needs Africa or Africa needs Russia” while African leaders were already turned towards Asian and the Gulf regions especially China and often asked why wake up the “Sleeping Giant Bear”. China became the best development suitor in Africa.
During this period, Russia seems to have attained relative political and economic stability. “As we regained our statehood and control over the country, and the economy and the social sphere began to develop, Russian businesses began to look at promising projects abroad, and we began to return to Africa,” noted Foreign Minister Sergey Lavrov early September when he addressed students and staff of Moscow State Institute for International Relations.
This process has been ongoing for the past 15 years. The return is now taking the form of resuming a very close political dialogue, which has always been at a strategic and friendly level, and now moving to a vigorous economic cooperation.
To reflect and consolidate these trends and in order to draw up plans for expanding consolidated partnerships with the African countries, President Putin initiated the Russia-Africa Summit last year during the BRICS summit in Johannesburg. The initiative was strongly supported. This October, it will be implemented under the co-chairmanship of the heads of Russia and Egypt, since this year Egypt is heading the African Union.
Further, from my research and monitoring, it is interesting to recall here that during the BRICS summit in Durban, on March 26-27, 2013, BRICS countries (Brazil, Russia, India, China and South Africa) discussed, among other topics, “BRICS and Africa: Partnership for Development, Integration and Industrialization.”
The BRICS membership gives an additional competitive advantage. Firstly, none of the members of this association is tainted with a colonial past on the African continent, and second, the BRICS member countries as a matter of principle do not interfere in the internal affairs of African countries. None of the BRICS member countries spread democracy in Africa by force or impose their values with the help of expeditionary corps and air strikes.
The U.S. and the European Union (EU) monopoly in African countries is steadily coming to an end, as new players have come to the African continent, namely the BRICS countries. Russia is now the new force. Russia’s renewed interest in Africa is due to a desire to restore its previous influence and to build allies as it experiences growing criticism by Western countries.
During my long years of research has shown me that Africa is a huge continent that still requires economic development. Its active demographic growth and abundance of natural resources are creating conditions for the emergence of probably the world’s biggest market in the next few decades.
Today, Africa moves towards raising its social, economic, scientific and technological development, and is playing a significant role in international affairs. African states are strengthening mutually beneficial integration processes within the African Union (AU) and other regional and sub regional organizations across the continent.
Furthermore, African leaders keep in mind other key questions such as rising unemployment, healthcare problems and poor infrastructure development. That is, they now focus on measures toward realizing the Sustainable Development Goals (SDGs).
So, in the contemporary period, Russia and Africa have to, both at a bilateral level and in various multilateral formats, take significant new steps forward in new joint projects in extractive industries, agriculture, healthcare, and education. Besides, there are aspects of the diplomacy that really need focus, for example cultural and social spheres as well as the use of soft power. Indeed, the forthcoming Russia-Africa summit in Sochi on October 23-24 should lay the necessary foundation for improving all these for a stronger partnership.
Quite recently, Foreign Affairs Minister Lavrov assertively acknowledged “Africa is one of our priorities. Our political ties in particular are developing dynamically. But economic cooperation is not as far advanced as our political ties. We believe that we should promote joint activity in order to make broader use of the huge potential of Russian-African trade and investment cooperation.”
Political dialogue: Russia has intensified promoting political dialogue, including the exchange of visits at the top levels. Interaction between foreign ministries is expanding. Last year, 12 African foreign ministers visited Russia. According to my calculation, Sergey Lavrov and his deputy Minister, Mikhail Bogdanov, have held talks with nearly 100 African politicians including ministers, deputies between January and September 2019. Bogdanov has interacted with all African ambassadors in Moscow.
Lavrov conducted bilateral dialogue with African countries at the UN in New York, between September 24 and 30, 2019. Lavrov held talks with Foreign Minister of Algeria Sabri Boukadoum, Foreign Minister of Morocco Nasser Bourita and Prime Minister of Sudan Abdallah Hamdouk among others.
During their conversation on the sidelines of the 74th Session of the UN General Assembly, all the sides discussed matters concerning the further expansion of multifaceted partnership, foreign policy collaboration in regional and international affairs.
With other questions such as the practice of democracy, Russia does support whatever regime is in power. While this makes its policy predictable, it does not encourage good governance and democratic practices in those countries that are severely challenged in these areas. Many other countries follow this practice and even countries like the United States, which often do speak out forcefully on behalf of good governance, are not always consistent.
Economic and investment cooperation: Africa truly is a continent of new opportunities and there is huge potential here for developing economic ties. Many see Africa’s growth primarily not because of aid, it is because of businesses and entrepreneurship, consistent efforts at creating wealth and employment. Africa in the 21st century does not need charity but wants to be an economic partner. African countries are not lacking the resources to boost the relationship, but the will power has always been put on hold or totally ignored.
Russia has shown strength in Africa in niche sectors such as nuclear power development, launching African satellites, and constructing energy and mining projects. It has been seeking to exploit conventional gas and oil fields in Africa; part of its long-term energy strategy is to use Russian companies to create new streams of energy supply. With regard to other economic areas, it may have to identify more sectors like this rather than compete head-to-head in a wide range of sectors with European Union countries, China, the United States, India, and others.
But U.S. President Donald Trump’s administration said recently that “Russia has bolstered its influence with increased military cooperation including donations of arms, with which it has gained access to markets and mineral extraction rights. With minimal investment, Russia leverages private military contracts, such as the Wagner Group, and in return receives political and economic influence beneficial to them.”
While Russians are aware of the equal competitive conditions in the continent, Africans on the other hand view Russia as another fairly large trading partner and, probably a stabilizing and balancing factor to other foreign players. In terms of stringency of strategic outlook and activeness on economic engagement, the country is seriously lagging behind China, U.S., EU, the Gulf States, India and Brazil.
Trade: Russian aid, trade, and investment in Africa, especially Sub-Saharan Africa, are modest. Russian exports to Africa have been growing modestly and reached $18.5 billion in 2017. Russian imports from Africa have been flat and totaled only $2.1 billion in 2017. This was well below Turkey’s trade with Africa in 2017.
Russian trade is heavily concentrated in North Africa, especially with Egypt. Noticeably, Russia’s relationship with North Africa is more significant. Nevertheless, Russia apparently wants to maximize the business relationship rather than the aid relationship. The problem is that Africa has little that Russia wants to buy.
It is, however, necessary to raise trade and economic ties to a high level of political cooperation. Russia and Africa have to show not only an exceptional commitment to long-term cooperation but also readiness for large-scale investments in the African markets taking into account possible risks and high competition.
Equally important are African businesspeople who are looking to work on the Russian market. Definitely, time is needed to solve all these issues including identifying and removing obstacles to mutual bilateral trade and investment.
Weapons and arms diplomacy: After the collapse of the Soviet era, Africa owed US$20 billion, later written off. This debt was due to weapon and arms delivery to Soviet allies including Ethiopia, Angola, Zimbabwe, Mozambique and a few other African countries. Now, Russia is the largest seller of arms to Africa and is willing to sell to any country. This gives it a certain advantage as many Western countries prohibit arms sales to a few countries.
More recently, Russia has made significant arms deals with Angola and Algeria. Egypt, Tanzania, Somalia, Mali, Sudan and Libya have also bought arms from Russia. The Russians also provide military training and support.
In Africa, Russia seeks to guarantee security. In the classical sense, security guarantees imply something different. Russia has very warm, historically developed relations since their decolonization. This forms the theme for the Sochi summit: “For Peace, Security, and Development” which organizers explained would serve as the foundation of the final joint declaration.
Soft power interplay: Experts and members of the Valdai Discussion Club noted that soft power has never been a strong side of Russian policy in the post-Soviet era. Federation Council and State Duma, both houses of legislators, enacted a law that banned foreign NGOs from operating in the Russian Federation. As a result, African NGOs that could promote people-to-people diplomacy and support cultural initiatives as well to push for good image, is non-existent.
On education and culture. Simply cultural cooperation could be described as catastrophic. With education, Russia now offers a few state scholarships. Official figures from the Ministry of Foreign Affairs pegged it at 15,000 students, only one-third of this receives Russian grants. The remaining two-thirds are fee-paying clients. The Ministry of Higher Education told me last month during interview discussions that there are nearly 21,000 African students while some in the far regions are still undocumented. This also means that African elite and the middle class pay approximately US$75 million annually to Russian educational institutions. Average tuition is US$5,000 per year.
Over the years, one of the key challenges and problems facing Russian companies and investors has been insufficient knowledge of the economic potential, on the part of Russian entrepreneurs, the needs and business opportunities of the African region. Africa needs broader coverage in Russian media. Leading Russian media agencies should release more topical news items and quality analytical articles about the continent in order to adequately collaborate with African partners and attract Russian business to Africa. The media can, and indeed must be a decisive factor in building effective ties.
After several years of consistently constructive criticisms, Russian authorities have ignored media cooperation. Russia could use its media resources available to support its foreign policy, promote its positive image, disseminate useful information about its current achievements and emerging economic opportunities especially for the African public.
Russian media resources here, which are largely not prominent in Africa, include Rossiya Sevogdnya (RIA Novosti, Voice of Russia, Sputnik News and Russia Today), Itar-Tass News Agency and Interfax Information Service. Besides, the Ministry of Foreign Affairs could use its accreditation opportunities to allow African media to work in Russia. While the Foreign Ministry has accredited foreign media from Latin America, the United States, Europe and Asian countries, none came from sub-Saharan Africa. Instead of prioritizing media cooperation with Africa, high-ranking Russian officials most often talk about the spread of anti-Russian propaganda by western and European media in Africa.
Professor Vladimir Shubin, Deputy Director of the Institute for African Studies under the Russian Academy of Sciences, reiterated: “Russia is not doing enough to communicate to the broad public, particularly in Africa, true information about its domestic and foreign policies as well as the accomplishments about Russian culture, the economy, science and technology in order to form a positive perception of Russia abroad and a friendly attitude towards it as stated by the new Concept of the Foreign Policy.”
Russia-Africa Summit: Russia holds its first summit in October. Through this, Russia and Africa aim jointly at advancing relations to a fundamentally new level and a wider dimension. Of course, Africa is not fully satisfied with Russia due to its “diplomatic niceties” and largely unfulfilled pledges and promises. Russia already has a plethora of post-Soviet bilateral agreements that it is now implementing, with some degree of limitations, in various African countries. It’s clear that Russia might not make any public financial commitment as many foreign countries have done over the years. But Russia needs to demonstrate that it has a plan to engage Africa in a significantly greater way than it has in recent years.
According to my investigations, Russia would sign 23 new bilateral agreements with a number of African countries and issue a joint declaration that would lay down a comprehensive strategic roadmap for future Russia-African relations.
Prime Minister Dmitry Medvedev, while addressing the Russia-Africa Economic forum in July also added his voice for strengthening cooperation in all fronts. “We must take advantage of all things without fail. It is also important that we implement as many projects as possible, that encompass new venues and, of course, new countries,” he said.
Medvedev stressed: “It is important to have a sincere desire. Russia and African countries now have this sincere desire. We simply need to know each other better and be more open to one another. I am sure all of us will succeed if we work this way. Even if some things seem impossible, this situation persists only until it has been accomplished. It was Nelson Mandela who made this absolutely true statement.”
In July, President Vladimir Putin took part on third day of the International Parliamentarian Forum that also brought African legislators, emphasized that “the modern world needs an open and free exchange of views, confidence building and search for mutual understanding”.
Indeed, judging from the above discussions about the changing geopolitical relations, after the first Russia-Africa Summit, there has to be a well-functioning system and mutual willingness in the spirit of reciprocity to achieve a more practical and comprehensive results from the new relations between Russia and Africa.
Kester Kenn Klomegah is an independent researcher and policy consultant on African affairs and Brics. He is the author of the Geopolitical Handbook titled “Putin’s African Dream and The New Dawn: Challenges and Emerging Opportunities” devoted to the first Russia-Africa Summit 2019.
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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