Insight Into How Yar’Adua Discouraged Otedola, Dangote From Taking Over Nigerian Refineries

Insight Into How Yar’Adua Discourages Otedola, Dangote From Taking Over Nigerian Refineries.

Femi Otedola, majority owner of Geregu Power Plc, revealed that the government of former President Umaru Yar’Adua derailed him and Aliko Dangote’s ambition to acquire stakes in the Kaduna and Port Harcourt refineries.

The two billionaires, who had secured interests through Blue Star Consortium during former President Olusegun Obasanjo’s administration, saw their plans reversed by Yar’Adua in 2007.

Had their acquisition succeeded, Otedola and Dangote would have held 20% and 51% of the refineries, respectively.

Otedola, who is also chair of FBN Holdings, expressed regret on Twitter, stating, “We were ready to change the game, but fate had other plans.” He praised Dangote’s perseverance despite the setback.

Otedola’s remarks were part of a congratulatory message to Dangote for the launch of gasoline production at the Dangote refinery. The refinery, located in Lekki Peninsula, Lagos, has begun producing refined petrol, which Otedola hopes will soon be available at filling stations, pending arrangements with NNPC.

This new refinery offers hope amid Nigeria’s fuel scarcity and rising prices, especially as NNPC Limited admits to owing suppliers $6 billion.

With the refinery expected to meet Nigeria’s fuel needs and eliminate import costs, there are expectations for reduced petrol prices.

However, NNPC will act as the sole buyer from the refinery and handle distribution, which may affect market deregulation and retail prices.

The 2021 Petroleum Industry Act may need adjustments to address these issues.

“The days of bowing to foreign powers for our fuel needs are over, thanks to your vision and determination. You have dealt a death blow to the so-called local cabals who have fattened themselves for years, feeding off our nation’s economic slavery,” Mr Otedola said.

Otedola’s Full Statement On Dangote Refinery

My Dear Brother Aliko,

First and foremost, I want to extend my heartfelt congratulations to President Bola Tinubu for his unwavering support and belief in actualizing this monumental achievement under his administration. This day belongs to every Nigerian who has dared to dream of a better future. Congratulations to our great nation—today, we all stand a little taller.

Aliko, it feels like just yesterday, but it has been 25 long years since we first set our sights on transforming Nigeria’s energy landscape. I remember vividly when we set up the Blue Star Consortium to acquire stakes in the Kaduna and Port Harcourt refineries—20% for me and 51% for you. We were ready to change the game, but fate had other plans. The government of the day, in an act I can only describe as utterly obnoxious, canceled our stakes and thwarted our vision. But, as always, you refused to be deterred.

You never gave up on the dream we shared. You carried the torch forward, igniting a spark that has today become a roaring flame. And now, 25 years later, here we stand on the precipice of history, with the first fuel shipment from the Dangote Refinery—a feat that is nothing short of miraculous.

While the Kaduna and Port Harcourt refineries have remained dormant, their promise unfulfilled despite billions of dollars spent on so-called turn-around maintenance, you have achieved what many said was impossible. You have beaten all the skeptics, silenced the naysayers, and proved wrong those who doubted your resolve, even those who never wanted this project to succeed.

You have not just built a refinery; you have liberated us from the chains of economic dependence that have held this nation back for far too long. The days of bowing to foreign powers for our fuel needs are over, thanks to your vision and determination. You have dealt a death blow to the so-called local cabals who have fattened themselves for years, feeding off our nation’s economic slavery. These cabals, who have grown rich by keeping Nigeria in a perpetual state of dependence, must now face the reality that their era of easy gains is coming to an end.

I am reminded of the time you revolutionized the cement industry in Nigeria. Ships that once brought in cement turned into rusting relics, scraps of a bygone era. Now, with your refinery in full swing, I foresee a similar fate for fuel imports. The depot owners should take heed—it’s time to dismantle those depots and sell them as scraps while the market is still high. The world has changed, and those who do not adapt will be left behind.

When I ventured into the depot business with Zenon, it was in response to the inefficiencies of the NNPC. Zenon pioneered the diesel business in Nigeria and quickly became the largest in the country, filling the gaps left by our inefficient system. But today, your refinery stands as a beacon of what is possible when one has the audacity to dream and the tenacity to see it through.

Aliko, you have my deepest admiration and respect. Congratulations to you and the entire board, management and staff of Dangote Refinery on this monumental achievement. This is not just a victory for you but for every Nigerian who dares to dream. May this be just the beginning of even greater things to come.

With profound respect and warmest regards,

Femi Otedola