Nigeria's oil overhaul faces last battles

Nigeria's lawmakers are on the cusp of clearing an oil industry overhaul that has eluded the nation for two decades. Final passage of a package of measures is expected as early as Wednesday due to alignment between the National Assembly and President Muhammadu Buhari.But added provisions, including one that could give the Dangote Group an effective monopoly on fuel, launched last-minute battles in Africa's largest oil exporter.The senate added a measure that would only allow companies with active refining licences to import fuel. Import volumes would also be linked to the amount of oil they refine.Currently 23 companies have refining licences, according to the Department of Petroleum Resources. Most process less than 12 000 barrels per day (bpd). The Dangote refinery, under construction in Lagos by billionaire Aliko Dangote, has a nameplate capacity of 650 000 bpd.Fuel marketers and the Trade Union Congress warn the measure would give an effective monopoly on fuel in West Africa's largest consumer.In a joint statement, the two primary fuel marketers' associations, MOMAN and DAPPMAN, said it would stifle price competition and kill off small businesses in the downstream sector."It hinders the country's financial and economic progress because it transfers a huge chunk of public wealth to favoured businessmen," the Trade Union Congress said.Dangote spokesman Anthony Chiejina said the government was pursuing the same policy to encourage Nigerian oil refining that it had with cement. Nigeria has largely banned cement imports for 20 years to encourage local production.Nigeria produces and exports cement, but the World Bank said in 2016 that cement prices in Africa are 183% higher, on average, than world prices.- Nampa/Reuters

Nigeria's oil overhaul faces last battles

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Republikein 2026-03-06

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Nigeria's oil overhaul faces last battles

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