Nigerian oil mafia stronger than drug cartels: Dangote

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

“I didn’t know that the mafias in the oil industry are stronger than drug cartels. It’s a big cartel. I’ll keep saying it everywhere,” he said in an interview published Tuesday in Bloomberg.

When asked if he feared that richer competitors might sell cheaper to sabotage his new refinery, Mr Dangote said: “You are right. They can say they will continue to sell cheaper to keep this refinery from working.

“But they can’t because they can’t accept local currency. We will accept local currency. Our refining capacity is almost twice as much as Nigeria’s consumption.”

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

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

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