Deji Adeyanju, prominent Nigerian activist and constitutional lawyer, has sharply criticized the anticipated benefits of the Dangote Refinery, expressing skepticism about its impact on fuel prices and the fairness of government support. In an exclusive interview with DAILY POST, Adeyanju argues that Dangote’s refinery might not bring the expected relief to Nigerians. Here are some key points from the interview:
Will Dangote Refinery’s Fuel Production Reduce Fuel Prices in Nigeria?
Deji Adeyanju is not optimistic about the refinery’s potential to lower fuel prices. “Not at all. In fact, Dangote’s fuel will likely be more expensive than the current market rates,” he asserts. Adeyanju explains that as a capitalist, Dangote is unlikely to offer subsidies. Instead, he predicts that Dangote will sell fuel at rates between N1300 to N1400 per liter. “The idea that NNPCL will be the exclusive buyer is flawed. If Dangote sells at these prices, it’s impractical for ordinary Nigerians.”
Concerns Over NNPC’s Role in Selling Crude Oil to Dangote
Adeyanju questions the rationale behind the NNPC selling crude oil to Dangote in naira. “NNPC does not extract crude oil; international oil companies (IOCs) do, and they trade in dollars. Selling in naira is nonsensical and benefits only a select few. Dangote should source crude oil independently like any other operator. The preferential treatment he’s receiving is problematic.”
Critique of Government’s Business Involvement
According to Adeyanju, government involvement in the business sector has proven inefficient. “The government has consistently failed in managing businesses. If refineries were privatized, competition would drive efficiency and address issues like fuel scarcity.” He emphasizes that a market-driven approach could resolve many of Nigeria’s economic problems.
The Issue of Fuel Pricing and Artificial Scarcity
Adeyanju is also critical of the way fuel prices are controlled. He questions why the market isn’t dictating prices, suggesting that government-imposed subsidies are insufficient. “If Dangote controls the pricing, the system is rigged. Market forces should determine prices, not artificial scarcity created by the government.”
Final Thoughts
In Adeyanju’s view, if Dangote’s refinery only sells fuel to NNPCL, it could lead to monopolistic practices. He calls for a more transparent and competitive market environment to ensure fair pricing and efficient service delivery.
