How Nigerian Govt Aborted Dream Dangote And I Had To Improve Nigerian Refineries –Femi Otedola

Otedola on how to improve Nigerian refineries

Nigerian businessman, Femi Otedola, has shared a revealing account of how to improve Nigerian refineries, in collaboration with fellow entrepreneur, Aliko Dangote, to acquire significant stakes in the Kaduna and Port Harcourt refineries, ultimately met with resistance and were unsuccessful due to unforeseen obstacles posed by the Nigerian government.

He stated this in a post on his X account on Tuesday.

He said, “First and foremost, I want to extend my heartfelt congratulations to President Bola Tinubu for his unwavering support and belief in actualizing this monumental achievement under his administration. This day belongs to every Nigerian who has dared to dream of a better future. Congratulations to our great nation—today, we all stand a little taller.”

He narrated how he and Dangote set up Blue Star Consortium to acquire stakes in the refineries but were rebuffed by the government at the time. 

During the tenure of former President Olusegun Obasanjo, the federal government took the decision to divest 51% of its equity stake in the Port Harcourt and Kaduna refineries to Bluestar Consortium Limited, a private sector entity, for a substantial sum of $721 million. 

This consortium, comprising esteemed stakeholders such as Dangote Oils, Zenon Oil, Rivers State Government, and Transnational Corporation, had assured the government of its capability to restore the refineries to optimal operational capacity within a remarkably short timeframe. 

However, the privatization process, initiated in 2003, culminated mere months before the expiration of Obasanjo’s presidency, sparking widespread speculation that the deal constituted a favors-driven parting gift to closely aligned associates.

Fierce opposition from key stakeholders, including the Nigeria Labour Congress, Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), and Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), ultimately culminated in a nationwide strike, compelling the newly inaugurated government of late President Umaru Yar’Adua to rescind the sale.

He said, “Aliko, it feels like just yesterday, but it has been 25 long years since we first set our sights on transforming Nigeria’s energy landscape. I remember vividly when we set up the Blue Star Consortium to acquire stakes in the Kaduna and Port Harcourt refineries—20% for me and 51% for you. 

“We were ready to change the game, but fate had other plans. The government of the day, in an act I can only describe as utterly obnoxious, canceled our stakes and thwarted our vision. But, as always, you refused to be deterred.

“You never gave up on the dream we shared. You carried the torch forward, igniting a spark that has today become a roaring flame. And now, 25 years later, here we stand on the precipice of history, with the first fuel shipment from the Dangote Refinery—a feat that is nothing short of miraculous.”

He also stated that the Kaduna and Port Harcourt refineries have become non-functional even with billions of dollars invested by the government for their turnaround.

He said, “While the Kaduna and Port Harcourt refineries have remained dormant, their promise unfulfilled despite billions of dollars spent on so-called turn-around maintenance, you have achieved what many said was impossible. 

“You have beaten all the skeptics, silenced the naysayers, and proved wrong those who doubted your resolve, even those who never wanted this project to succeed.

“You have not just built a refinery; you have liberated us from the chains of economic dependence that have held this nation back for far too long. The days of bowing to foreign powers for our fuel needs are over, thanks to your vision and determination. 

“You have dealt a death blow to the so-called local cabals who have fattened themselves for years, feeding off our nation’s economic slavery. These cabals, who have grown rich by keeping Nigeria in a perpetual state of dependence, must now face the reality that their era of easy gains is coming to an end.

“I am reminded of the time you revolutionized the cement industry in Nigeria. Ships that once brought in cement turned into rusting relics, scraps of a bygone era. Now, with your refinery in full swing, I foresee a similar fate for fuel imports. The depot owners should take heed—it’s time to dismantle those depots and sell them as scraps while the market is still high. The world has changed, and those who do not adapt will be left behind.”

He noted that his decision to venture into Zenon was pushed by inefficiencies of the then Nigerian National Petroleum Corporation (now Nigerian National Petroleum Company Limited).

“When I ventured into the depot business with Zenon, it was in response to the inefficiencies of the NNPC. Zenon pioneered the diesel business in Nigeria and quickly became the largest in the country, filling the gaps left by our inefficient system.”

He described Dangote Refinery as a beacon of hope for the country.

He said, “But today, your refinery stands as a beacon of what is possible when one has the audacity to dream and the tenacity to see it through.

“Aliko, you have my deepest admiration and respect. Congratulations to you and the entire board, management and staff of Dangote Refinery on this monumental achievement. This is not just a victory for you but for every Nigerian who dares to dream. May this be just the beginning of even greater things to come.”

Dangote refinery is expected to roll out petroleum in next 48 hours, with hopes that it would help reduce the problem of fuel scarcity in the country.

Credit: Sahara Reporters