Presidency Rattled As France Pressures Tinubu Over N’Delta Refinery Awarded To French Company

Indication shows that the presidency is currently rattled as French President Emmanuel Macron is reportedly exerting significant pressure on President Bola Tinubu to expedite on the construction permit for an oil refinery project in the Niger Delta, owned by Abdul Samad Rabiu, the Nigerian billionaire and head of the BUA Group.

The contract, awarded to the French company Axens, aims to build a refinery with a capacity of 200,000 barrels of oil per day. It will also produce high-quality gasoline, diesel, and jet fuel adhering to Euro-V specifications, along with propylene, a key component in the production of polypropylene-based plastics and packaging.

This development has ignited a firestorm of debate, with critics accusing Macron of overstepping diplomatic boundaries and prioritizing French economic interests over Nigeria’s sovereignty and environmental concerns.

The urgency and intensity of Macron’s push have left many questioning the true motives behind this high-stakes international maneuver. Macron’s push for the refinery project is seen by some as part of a broader strategy to bolster France’s economic influence as a key player in Africa’s oil industry.

This pressure comes amid a backdrop of strained personal and bilateral relations between Abuja and Paris, after US President, Donald Trump arm-twisted President Tinubu to overturn the recommendation of Nigerian military chiefs that saw the contract to supply military-grade riffles, that had initially been awarded to French contractors rescinded and awarded to American contractors.

Defense Minister, Mohammed Abubakar and Chief of Defense Staff, Gen. Christopher Musa, had both advocated for a deal with French defense contractors, and although President Tinubu initially sanctioned the deal, pressure from Trump forced him to change his mind.

The contract is now awarded to DICON Gray Insignia (DGI), a joint venture between the Nigerian Defense Industries Corporation (DICON) and Gray Insignia Nigeria. The contract to bolster the Nigerian Army’s armament capabilities will involve riffles produced in the US and then assembled in Nigeria.

An irate Macron summoned Tinubu to Paris last week for an explanation over the botched contract. Aso Rock sources have confirmed to Huhuonline.com that during Tinubu’s meeting with Macron, the French President lashed out and called President Tinubu a “liar” to his face, saying he (Macron) was “very, very disappointed” that Tinubu failed to keep his promises.

A source close to President Tinubu confirmed to Huhuonline.com on conditions of anonymity that during Tinubu’s last meeting with Macron in Paris, the issue of the BUA refinery was raised by a close Macron confidante, Franck Riester, ex-French Minister for Foreign Trade and Economic Attractiveness, who personally mid-wife the Axens contract award negotiations with BUA.

As Macron’s personal representative, he led a high-power delegation to Lagos featuring amongst others, Jean Sentenac, President of Axens, Alexis du Boisberranger, Technical advisor for export and strategic partnership, Jérôme Pasquier, then French Ambassador to Nigeria and Laurence Monmayrant, Consul General of France in Lagos, Benedicte Constans, adviser to French Communication Minister.

During the visit, Riester witnessed the signing of a progress acknowledgement statement between BUA and Axens, as both parties reiterated their commitment to deliver the BUA refinery project on time and with the highest standards.

First announced in 2018, with a target completion date of 2024, Macron became highly irritated when he was told the BUA refinery is unlikely to see the light of day before 2030, due to what one Aso Rock source described as “significant challenges from disputes over land compensation and ownership,” which has delayed BUA’s quest to obtain a planning permission.

Securing planning permission is a critical process that ensures legal, environmental, social, and economic sustainability. Without it, the refinery risks legal challenges, environmental backlash, and potential shutdowns. Huhuonline.com gathered that the project site, located within the Eket and Esit Eket LGAs, has become a focal point of contention.

BUA allocated $7 million to compensate local landowners for the land. However, community leaders have expressed dissatisfaction with how the funds were distributed, leading them to pursue legal action. In response, BUA’s management and Akwa Ibom State Governor Umo Eno, who served as Akwa Ibom Commissioner for Lands and Water Resources from 2021 to 2022, are actively engaging with these community leaders to negotiate an out-of-court settlement, with a resolution deadline set for April 4.

Beyond financial disagreements, there is an ongoing dispute regarding the rightful ownership of the Stubb’s Creek Forest area, the designated site for the refinery. The Ekid people, representing the Eket and Esit Eket communities, assert ancestral claims to this land. They allege unauthorized occupation by BUA and have issued eviction notices to halt the project’s progression until proper consultations and agreements are established.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is advocating for the disputed funds to be directed into the Midstream Host Community Development Trust Fund to ensure host communities receive equitable benefits, and mitigating conflicts. NMDPRA sources told Huhuonline.com that although the regulatory agency has approved the project, it has not yet received the environmental impact assessment commissioned by the Federal Ministry of Environment, which is required before planning permission can be granted. Tinubu reportedly assured Macron that this hurdle will be negotiated in the coming months, and once resolved, he will direct the NMDPRA to initiate a fast-track procedure for the planning permission. It will then be up to Rabiu to seek a license to operate and then a license to commission for the refinery,

A source at Rabiu’s BUA Group told Huhuonline.com that the contract to build the refinery and petrochemical plant, was awarded to French company Axens in 2020, thanks in large part to the intervention of President Macron; who personally called Rabiu, who at the time was the chairman of the French-Nigeria Business Council, to persuade him to award the contract to Axens. This greenfield project is designed to produce Euro-V standard fuels and polypropylene for domestic and regional markets. In a statement on their website, Corinne Garriga, Head of Communications, Axens Group, quoted BUA Group chairman and CEO, Abdul Samad Rabiu as saying: “Once completed, this RFCC-based complex will produce high-quality gasoline, diesel, jet fuel meeting Euro-V specifications for the Nigerian market and the larger region. In addition, it will produce propylene, an essential component for the petrochemical industry used in polypropylene-based plastics and packaging. This large complex will help in reducing Nigeria’s dependence on imported fuels and petrochemicals.”

At the contract award ceremony, Axens’ Chairman and CEO, Jean Sentenac said: “We are delighted to be part of this strategic project providing the most advanced technologies on the market that are energy-efficient and ensure the production of high-quality fuels and petrochemical intermediates. This state-of-the-art integrated complex will allow BUA Group to develop its refining and petrochemical capabilities in Nigeria and produce highly valuable products for the domestic market. It is a great pleasure and a pride to partner with them to concur to develop Nigerian economy and ensure the success of this strategic state of the art project.”

Macron has praised Tinubu for his transformative leadership, likening his efforts to those that revitalized Lagos. The French president’s visit to Nigeria and Tinubu’s reciprocal visit to France have been marked by discussions on multi-sectoral partnerships, including agreements in health, creative industries, and climate change. But Tinubu’s French kiss with Macron is facing challenges at home and abroad. Rabiu’s presidential connections influenced his choice for the construction of facilities in the vicinity of the refinery like the access road. Rabiu awarded that contract to Hitech Construction, a Nigerian company owned by the Lebanese-Nigerian billionaire Gilbert Chagoury, whom he knows well. Last November, the two businessmen accompanied President Tinubu on his state visit to Paris. Chagoury who enjoyed patronage under the regimes of Gen. Sani Abacha and Goodluck Jonathan is back within the corridors of power in Aso Rock.

Tinubu describes Chagoury as one of his “confidants”, and Rabiu, who is from Kano in the north, developed closer ties with the president in the lead-up to his election victory. During the campaign, Tinubu is understood to have used Rabiu’s private jet. But his presidential connections have yet to help Rabiu overtake his major rival and Africa’s richest man, Aliko Dangote.

Like Rabiu, Dangote is active in the sugar and cement sectors, and he already has a 650,000bpd refinery, though that too was beset with construction delays. The facility went into production last September, but Dangote is still complaining about difficulties in procuring crude oil.

(This article was originally published by Huhuonline.com)