From court battles to cooperation: Dangote and NNPC seem to have called for a truce
In what could be the start of a critical shift in Nigeria's oil and gas sector, Aliko Dangote, President/CEO of the Dangote Group, recently paid a high-level courtesy visit to the new Group CEO of the Nigerian National Petroleum Company Limited (NNPC), Mr. Bashir Bayo Ojulari, at the NNPC Towers in Abuja.
Dangote and NNPC's new GCEO meet to mend ties and boost collaboration.
Past clashes included lawsuits, failed crude deals, and investment disputes.
The meeting signals hope for improved fuel supply and energy security.
The meeting, historic in its timing and significance, represents an attempt by two oil powerhouses to repair frayed ties and pave the way for a more cooperative and mutually profitable future.
Dangote vs NNPC
The relationship between Dangote Group and NNPCL has been strained in recent years.
Disputes arose over several issues, including the contentious Naira-for-Crude deal, which was inconsistent under the previous NNPCL leadership.
Designed to boost local refining, the program failed amid misunderstanding, lack of commitment, and claims by NNPC that it had "forward-sold all of its crude."
Further straining ties, NNPCL first proposed a $1 billion investment for a 20% interest in the Dangote Refinery. However, this was eventually cut to 7%, along with attempts to recoup some of the funds.
Dangote Petroleum Refinery, the world's largest single-train refinery, last year also sued the NNPC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over the issuance of fuel import licenses.
Dangote contended that the ongoing acceptance of such permits weakens indigenous refining capability, especially as his $19 billion refinery approaches full output.
A recent Federal High Court verdict in Abuja permitted the Dangote Group's N100 billion lawsuit to proceed, rejecting NNPCL's bid to halt the case.
This emphasized the rising institutional friction between both parties, even as Nigerians continue to face high gasoline costs.
NNPC and Dangote unite for the national interest
Dangote and Ojulari's meeting on Thursday is the first official interaction since the previous NNPC chief, Mele Kyari, was removed in April.
Both sides highlighted a common goal: to encourage healthy competition, boost Nigeria's energy security, and speed up the country's economic growth, as reported by the Punch.
Ordinary Nigerians face tremendous stakes. The country has long battled with fuel imports, irregular supplies, and rising prices.
If given the right conditions, Dangote has noted that his refinery can handle all of Nigeria's fuel needs.
However, the NNPC continues to play an important role in domestic petroleum distribution and national energy policy.
Recent public sentiment appears to be in favor of Dangote's output.
In February, a viral video experiment contrasted petrol from an NNPC station to fuel from an MRS station that sold Dangote fuel. The Dangote-powered generator lasted roughly 13 minutes longer, provoking public arguments about quality and efficiency.
If Thursday's meeting is any indication, both Dangote and NNPC may finally see that partnership, not hostility, is what Nigeria needs.
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