Modular refineries, on Sunday, confirmed the concerns raised by Africa’s richest man, Aliko Dangote, on the fact that some mafias in the oil sector were bent at stopping in-country refining of crude oil for the production of Premium Motor Spirit, popularly called petrol, and other refined petroleum products.
Operators of modular refineries stated that they had raised this concern severally in the past but received no positive feedback, stressing that the Chairman of Dangote Petroleum Refinery just re-echoed it last week.
They spoke to newsmen through their umbrella association, Crude Oil Refinery Owners Association of Nigeria, CORAN, while reacting to Dangote’s recent revelation on the matter.
The Publicity Secretary, CORAN, Eche Idoko said “you can see that Dangote has raised similar concerns just as we’ve been saying all along about the mafias in the oil sector. These merchants have held the country hostage, especially in the area of our domestic petroleum products’ supply and it is crippling the whole economy.”
Last week, Dangote revealed that both local and international cartels, which he described as “mafia”, made repeated attempts to sabotage the $19bn Dangote Petroleum Refinery project located in Lagos.
“Well, I knew that there would be a fight. But I didn’t know that the mafia in oil, they are stronger than the mafia in drugs. I can tell you that. Yes, it’s a fact,” he said.
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Dangote, who described himself as a fighter, said they tried all sorts to stop him. Dangote spoke at the Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum in Nassau, The Bahamas.
“As a matter of fact during the COVID period, some of the international banks were looking forward to making sure that they push us into default of our loans so that the project will just be dead. And that didn’t happen with the help of banks like Afreximbank,” the oil firm’s boss had stated.
CORAN explained that the rise in food inflation in Nigeria could also be attributed to the hike in the pump prices of petroleum products, especially PMS, stressing that in-country refining would have helped in tackling these costs.
“The reason why this government hasn’t been able to tackle inflation, especially food inflation in the country is because of the prices of petroleum products. And you can’t keep playing the ostrich,” Idoko stated.
He added, “Yes we understand that if you are in OPEC you can decide to peg the price of your crude to OPEC standard, but in all OPEC-member countries, including Saudi Arabia, Russia, etc, they all have special arrangements internally for their people.
“They have special arrangements for domestic use of crude. Even South Africa has crude oil reserves, but where is Nigeria’s reserves? And I don’t mean oil reserves in the ground that are yet explored, but reserves that are stored somewhere.”
CORAN is a registered association of modular and conventional refinery companies in Nigeria. Modular refineries are simplified refineries that require significantly less capital investment than traditional full-scale refineries.
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