Date Published: 06/22/09

How Dangote caused fuel scarcity in Nigeria and made N29 billion profit

Aliko Dangote

A broad spectrum of core stake holders in Nigeria Politics and Economy has begun a push for the prosecution of Billionaires businessman Aliko Dangote for alleged involvement in crippling the Country’s Oil refining capacity and unlawful profiteering to the tune of N29 Billion . Mr. Dangote's illegal windfall allegedly came from bribing the Country's National Oil Company's functionary and purported change of contract specifications in the production of low pour fuel oil (LPFO).

Pointblanknews.com learnt in Abuja and Lagos, Business and Political circles at the weekend, that Northern Progressive are scandalized about "Dangote's arrogant sense of dynastic entitlement" that led repeatedly to unscrupulous business practices which have now affected Nigeria's petroleum refining capacities.

According to sources, Dangote has presented a business proposal from his MRS to Chief Olusegun Obasanjo during the latter's presidency had expressed interest that he was willing to produce LPFO for Nigeria's domestic market. That was a crucial component in textile industrial dyes and ink.

Obasanjo was said to have given approval that the product be made available to textile manufacturers in Nigeria at ₦8:30K , but Dangote who was said to be driven by a cut-throat instinct was said to have decided on a scheme through which monetary inducement were made to NNPC officials and then every batch of LPFO was exported at $250 per tonne. The businessman who has maintained a consistent three year mention in Forbes exclusive list of world Billionaires had a windfall of ₦29 Billion in his kitty while Nigeria started facing unprecedented deindustrialization in the textile sector.

To produce the LPFO, Dangote got the refineries to stop working. He had to mix HPO with Diesel which will equal High Pour Fuel Oil (HPFO).

Refinery would crack LPFO to get PMS. It was very profitable for Aliko to export. He made a profit of ₦29 Billion. The diesel for local consumption was stopped and used to blend with HPO to get Dangote’s LPFO.

There are indications that the National Assembly may ask Dangote to refund at least ₦25 Billion. A powerful lobby ring of Northern Progressive Politicians and stakeholders in Nigerian economy are said to be pushing for Dangote and other corrupt NNPC officials to face prosecution by Economic and Financial Crime Commission, (EFCC), of Nigeria. He used his MRS to pay-off NNPC officials and began massive production and exportation at $250 per tonne.

As at the time of filling this report, Dangote could not be reached for his comments as he was said to be on his way to London for an unspecified reasons.