Gas Deal: Dangote Now Smiling with NNPC After Sponsoring Protests Against Them

A journalist and Executive Director of The Authority Newspaper, Chuks Akunna, has criticized Nigerian billionaire Aliko Dangote for what he describes as a contradictory relationship with the Nigerian National Petroleum Company (NNPC) Limited.

This follows a recent gas supply deal between Dangote’s refinery and NNPC, despite earlier allegations of sabotage against the state-owned oil company. 

In a social media post on X (formerly Twitter), Akunna accused Dangote of hypocrisy.

His words: ‘Always good to take @AlikoDangote’s claims with a shipload of salt. Months ago, he accused @nnpclimited of sabotaging his refinery, even sponsoring protests against the GCEO @MKKyari. See our man grinning from ear to ear after sealing a gas deal with the same “saboteurs!” 🤣🤣🤣’

The comments came shortly after NNPC announced a major deal to supply 100 million standard cubic feet of natural gas per day to the Dangote Refinery for 10 years. Under the agreement, NNPC Gas Marketing Limited will provide natural gas for both power generation and as feedstock for the refinery, which is located in Lagos.

While financial details were not disclosed, the contract includes options for renewal and additional supply. 

The partnership comes amid allegations that NNPC has sabotaged the operations of local refineries (primarily Dangote’s), including claims of withholding crude oil needed for refining. The accusations have drawn public debate, with some suggesting NNPC deliberately stifles competition to maintain control over Nigeria’s oil industry. 

It can be recalled that NNPC’s Group Chief Executive Officer, Mallam Mele Kyari, recently denied these allegations.

He clarified that the company actively supports refineries by supplying the crude oil necessary for their operations. He also noted that NNPC holds a 7.2% equity stake in the Dangote Refinery, valued at approximately $1 billion, and as such, can not harm the company it has a reasonable stake in.

Kyari said, “On domestic refinery, there are several media stunts that you see around NNPC, around why NNPC is now a saboteur to domestic refining. The NNPC is not willing to support domestic refining. The truth is very far from it and I must speak to it straight.

“We are very proud part owners of the Dangote Refinery, there is no doubt about it. We saw an opportunity that is a clear market for at least 300,000 barrels of our production we know that as time moves on, people will start struggling to find a market for their production, it will happen, it is already happening.

“Oil is found in very many unexpected locations today across the world and people have choices. Therefore, we saw an opportunity to unlock supply to the domestic refineries not just the Dangote but any other refinery that operates in the country.

“So, it was a very informed business decision. Therefore, from day one, we knew that it was to our benefit to supply crude oil to the domestic refinery. We don’t need to be persuaded or anyone to talk to us. There is no need for any pressure from the street for us to do this, we are already doing this.”