Aliko Dangote, chairman of the Dangote Group, has revealed that the fear of being labelled a monopoly prevented him from acquiring Mobil, Africa Petroleum, and Oando petroleum products distribution companies. This disclosure was made during a recent media briefing, amidst the company’s ongoing dispute with the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG).
Initially, Dangote had planned to limit his company’s operations to petroleum products production, with no intention of venturing into retail. However, during the construction of his 650,000 barrels per day refinery project, opportunities arose to purchase Mobil, AP, and Oando. Dangote stated that the cost of acquiring these companies was relatively low, estimated to be less than N500 million. He expressed that if he had foreseen the current circumstances, he might have considered purchasing them to expand his operations.
Dangote emphasized that his primary concern was avoiding the perception of monopolizing the industry. Instead, he opted to focus on production, allowing other companies to become his customers. However, he has now indicated his willingness to confront players in the downstream oil sector, stating that he has been prepared for such challenges throughout his career.
The Dangote Group and NUPENG have been at odds over unionization disputes, with NUPENG accusing Dangote Refinery of engaging in anti-labour activities related to its fuel distribution scheme. Despite these allegations, Dangote has consistently denied any wrongdoing. On Monday, the Dangote Refinery launched its fuel distribution scheme nationwide, despite opposition from key stakeholders in the industry.
The commencement of Dangote Refinery’s fuel distribution scheme marks a significant development in the Nigerian oil sector. As the company navigates its disputes with NUPENG and other industry players, it remains to be seen how these events will unfold and impact the industry as a whole. With Dangote’s refinery poised to play a major role in the country’s oil sector, the outcome of these conflicts will likely have far-reaching consequences for the industry and its stakeholders.
