Nigeria’s oil mafias stronger than drug cartels: Dangote

Aliko Dangote, Africa’s richest man, says the mafias in Nigeria’s oil sector are stronger than drug cartels.

“I never knew that the mafias in the oil industry are stronger than drug cartels. It’s a big cartel. I will keep saying anywhere,” said in an interview published in Bloomberg on Tuesday.

When asked if he feared richer competitors could sell at cheaper rates to sabotage his new refinery, Mr Dangote said, “You are right. They can say they will keep selling at a cheaper rate for this refinery not to work.

“But they cannot because they will not be able to take local currency. We will take local currency. We have refining capacity that is almost twice the consumption of Nigeria.”

Mr Dangote’s refinery started operations in September. Shortly before the start, Mr Dangote had raised the alarm that forces in the oil sector were scheming to sabotage his project.

Mr Dangote said, “Well, we have a choice of when we produce, we export or we sell locally. But we are a private company. Yes, it is true, we have to make profit. We built something worth $20 billion. So definitely, we will have to make money.

“The removal of subsidy is totally dependent on the government, not on us. We cannot change the price. But I think the government will have to give up something for something. So at the end of the day, the subsidy will have to go.”