Nigeria oil sector plagued by sabotage and cartels

Dangote To Build $2.5bn Fertiliser Plant In Ethiopia • Channels Television

Nigerian business magnate Aliko Dangote has expressed concerns over alleged sabotage in the country’s downstream oil sector. Speaking to journalists, Dangote, who is the Founder and President/Chief Executive of the Dangote Group, cited multiple incidents of sabotage at his refinery and public refineries. He claimed that organised cartels pose a significant threat to the sector, likening them to drug mafias.

Dangote recounted instances of theft and vandalism at his refinery in Lekki, including the removal of spare parts from a 400-ton boiler. He estimated that his company has lost around $82 million to theft and sabotage. The billionaire businessman also highlighted the destruction of pipeline infrastructure across the country, alleging that depots from Kano to other states had been deliberately sabotaged.

Dangote’s comments come amid concerns over the scale of sabotage and organised theft in the oil sector, which he believes represents a serious threat to production and national economic security. The Dangote Refinery, which was commissioned in May 2023, has experienced several incidents of sabotage, including 22 attempted physical sabotage incidents since commencing operations.

The company has employed over 2,000 security personnel to protect the refinery, more than the number of operational workers. Despite these measures, Dangote warned that the threat of sabotage and theft remains a significant challenge for the oil sector. He called for greater awareness and action to address the issue, which he believes is critical to the country’s economic security.

The allegations of sabotage and theft in the oil sector have sparked concerns among industry stakeholders and regulators. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has previously raised concerns over the treatment of workers in the sector, including the dismissal of around 800 workers from the Dangote Refinery. The incident triggered a temporary strike, with workers alleging that they were targeted for their union activities.

The Nigerian government has been urged to take decisive action to address the issue of sabotage and theft in the oil sector, which is critical to the country’s economy. As the sector continues to face challenges, stakeholders are calling for greater transparency and accountability to ensure the long-term sustainability of the industry.

Tags:

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top