Building a $20 billion refinery is no small feat, but in Nigeria, even the most significant investments face unique challenges. One such challenge is the issue of access to crude oil. Abba kaka highlights the plight of Dangote’s refinery, which despite its massive investment, struggles with securing a steady supply of crude oil in a country renowned for its oil exports.
In a crude-exporting country, the expectation is that refineries would have an abundant supply of crude oil. However, the reality is starkly different. The President must urgently address this issue. Whether it’s the Nigerian National Petroleum Corporation (NNPC) or international oil companies, those obstructing Dangote’s access to crude are essentially undermining the Nigerian economy.
" You build a refinery of $20 billion and you have a problem of access to crude in Nigeria," said Abba kaka. This situation is perplexing and calls for immediate governmental intervention. The sabotage not only affects Dangote but also the broader economic landscape of Nigeria.
Furthermore, the high-interest rates are crippling businesses. "Thirty percent interest rate—you can't do business with that kind of high-interest rate," Abba kaka explained. He emphasised that this financial burden is stifling business operations, making it nearly impossible for entrepreneurs and importers to thrive.
Additionally, the excessive customs duties are another significant barrier. "Right now, one container costs about 17.5 to 18 million Naira to clear in Lagos today," Abba kaka noted. This exorbitant cost has led to a drastic reduction in port volume, with many importers ceasing their operations altogether.
The pressing issue of crude supply, coupled with economic policies that hinder rather than help, paints a challenging picture for Nigeria’s business environment. Addressing these concerns is critical for fostering a more conducive atmosphere for investment and economic growth.
Watch the video from 10:50