Dangote’s oil cabal warning sparks debate on Nigeria’s energy policy

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Aliko Dangote, Nigeria’s wealthiest businessman, has warned of an “oil cabal” strangling the country’s energy sector, but his own refinery’s lawsuit to block petrol imports has raised questions about who should shape Nigeria’s energy policies. While Dangote’s refinery is a significant investment in Nigerian self-sufficiency, it is crucial to consider the role of other stakeholders, including depot owners, independent marketers, and small-scale petrol sellers.

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The current approach seems to favour a single supplier model, which could lead to a monopoly and dictate prices. However, Nigeria’s energy market is complex, and adaptability is essential. Independent marketers have shown resilience in the face of supply chain disruptions and price fluctuations.

Supporters of the single supplier model argue that it will bring order and efficiency, but Nigerian markets are inherently chaotic, and this chaos has bred innovation. The government’s push for standards is necessary, but regulations should be designed with input from all stakeholders, including independents.

The telecoms industry provides a useful lesson, where deregulation and competition led to innovation and improved services. A similar approach in the energy sector could promote accountability and resilience.

Rather than demonising the Dangote refinery, it should be integrated into Nigeria’s diversified market. The government should regulate with, not against, oil independents and retain imports to ensure competition and options.

Ultimately, Nigeria’s energy security requires a collective effort involving all stakeholders, including depot owners, marketers, and small-scale sellers. The question is: how can Nigeria build a resilient, fair, and open energy ecosystem?

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