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Interestingly, NNPC Ltd did not have to react or fight back any of the wrangling as the Dangote people seemed to have missed the point in recognising the huge economic potential and reach of an industry that could accommodate all players and which has sustained Nigeria’s economic growth for five decades.
In a manner similar to his strategy for the other industries in which he has dominated in Nigeria, Dangote needs better stakeholder management that trying to overwhelm others, while expecting that everyone will naturally yield space for only him to flourish. This is the oil industry, and relationships are as valuable as money in the treasury.
In its press release rebuttal, Pinnacle Oil, the neighbour to Dangote Refinery who is unfairly purported to have intentions of blending substandard products, succinctly stated that: “Deregulated commodity markets work best with an open system of multiple sellers and multiple buyers bidding to establish the market price.” Nigeria should have access to a range of supply options, such as local refineries or imports, in order to determine the most competitive and sustainable prices.
However, Dangote Refinery must be prepared to consider lower margins and beneficial long-term relationships instead of the acrimonious approach it has been engaged in. If its prices are competitive, importation will certainly not be any marketer’s first choice.