In May 2021 , NNPC went into marriage with Dangote Refinery (DR) by proposing to acquire 20% equity in DR. Early 2024, NNPC promised to supply crude to DR. In July 2024, Dangote alerted the public that NNPC did not own 20% in DR but 7.2%. In July 2024, Dangote accused the government of importing bad fuel into the country and that the International Oil Companies and internal forces were bent on sabotaging him. A week later, NNPC fired back that DR is not licensed and its fuel is inferior to the imported one. Hell was let loose.
What lessons can we learn? Dangote cannot complain about the system now. Why? The system has served him well in the last 30 years! The system made him emerge as the richest African alive. Dangote is a one-man cabal! But like DAEWOO in South Korea and the late MKO Abiola, you can be 99% correct in your political calculations but the day you are 1% wrong politically, the financial empire built through political connections and manipulations will face existential threat.
This is a big lesson: It is dangerous when you have a business that is government-dependent; even though it is the easiest way in developing countries to make MEGA money (the type that can put you on the FORBES list) through concessions, FX allocation preferential treatment, monopoly, direct printing of money by CBN and sharing of same among the elites, etc. Emefiele allegedly printed N30 trillion and a whopping 85% could not be accounted for or traced to any national projects, according to CBN auditors!
Dangote should sit down with NNPC and resolve issues amicably. Let him do what Bill Gates did when he was faced with similar huge opposition that threatened his survival. Gates divested from Microsoft – retained only 5% – and took his cash to electricity and health business. Immediately, peace returned. It is the way the world (of business) runs. Once the wealth of the nation resides in your house, peace eludes you! Ali Baba’s experience is also instructive here. Jack Ma, China’s richest man, said: “To get rich is glorious but among the richest men in China, only a few have a good ending!”