An in-depth investigation by a concerned group has revealed disturbing details about alleged corruption and monopolistic practices in Nigeria’s oil industry, involving high-ranking government officials and major oil companies. The investigation began after a cryptic comment by Aliko Dangote regarding Malta and the Nigerian National Petroleum Corporation (NNPC) sparked suspicion.
The NNPC grants importation licenses to a select group of oil companies responsible for importing petroleum products into Nigeria. These companies, often referred to as “oil marketers,” set the prices for petroleum products. Additionally, another group of companies is responsible for exporting and selling unrefined petroleum products both locally and internationally. The NNPC, along with a few partner companies, plays a significant role in this sector, with high-ranking government officials, military leaders, and politicians allegedly involved in oil theft.
To understand the situation better, the investigation broke down the oil exportation and importation process in Nigeria. Oil is extracted from the ground using drilling rigs and then exported to refineries where it is processed into refined products. The processed oil is transported from the refinery to storage tanks, blending facilities, and ports via pipelines or ships. At the port, the oil is loaded onto tankers or other vessels and shipped to Nigeria and other countries. Finally, the oil is sold to buyers in Nigeria at prices set by the importers, with the government subsidizing a significant portion to make it more affordable for citizens—a practice known as fuel subsidy.
Recently, Oando PLC announced the acquisition of 100% of Nigerian Agip Oil Company, a subsidiary of the Italian multinational oil and gas company Eni S.p.A. This acquisition effectively places the Tinubu family in control of Agip Oil, which operates 17 onshore oil blocks, produces 11 million barrels of oil and condensates annually, and manages the Bonny natural gas liquefaction plant. This move has raised eyebrows, especially given the strategic importance of Agip Oil’s assets in Nigeria.
With control over substantial oil reserves in the Niger Delta and the ability to explore further through Agip Oil, the Tinubu family has strategically chosen to refine oil in Malta instead of Nigeria. In early 2021, Enemed Co Ltd, Malta’s leading fuel supplier, issued a tender for the leasing of storage tanks and a blending facility at the Ras Hanzir Oil Terminal. Ras Hanzir Oil Terminal Limited, owned and operated by the Tinubu family, won the bidding and has established a functioning refinery in Malta. Wale Tinubu, chairman of Oando PLC, also serves as chairman of Ras Hanzir Oil Terminal Limited.
Following Bola Tinubu’s inauguration as president, his first major move was to announce the removal of the fuel subsidy, despite the government allegedly continuing to pay it in secret. This move allowed him to increase petroleum product prices, benefiting his own monopoly. With the forced acquisition of Agip Oil by Oando PLC, Tinubu has become the largest oil exporter, explorer, and marketer in Nigeria, second only to the NNPC. The investigation alleges that Tinubu, through NNPC, sells Nigeria’s oil to himself at a low price via his company in Malta. He then buys back the refined oil at a higher price and sells it to the Nigerian public at inflated prices while secretly benefiting from the subsidy.
This alleged scheme represents a significant level of financial exploitation. Even after leaving office, Tinubu’s oil monopoly could continue to dominate the Nigerian oil industry, ensuring the country remains without a functional refinery and maintaining high petroleum product prices. The investigation claims that in 2023 alone, over $2 billion worth of petroleum products were sold to Nigeria through the Malta refinery, indicating the potential future of Nigeria’s oil importation.
This development also highlights the potential threat posed by Dangote’s refinery to Tinubu’s monopoly. If Dangote’s refinery becomes operational, it could disrupt Tinubu’s multi-trillion-naira oil enterprise.
The investigation concludes with a critical view of Tinubu’s actions, questioning the need for such wealth accumulation given his age, and describing the situation as a disheartening example of greed and exploitation in Nigeria’s oil industry.