The Dangote Dilemma: Private Gain vs Namibia’s National Oil Interest

News reports indicate that Nigerian billionaire Aliko Dangote plans to develop an oil storage facility in Namibia and build a pipeline from Walvis Bay to Zimbabwe.

This proposal raises an important question for Namibia: how will this project affect the growth of our emerging oil and gas industry?

Namibia expects to extract oil from discoveries in the south within the next five to six years. This positions our country to develop, refine, store, and distribute its own petroleum resources across the region.

We must therefore examine how foreign-owned oil infrastructure could influence our long-term national interests.

Namibia already has a state-owned oil storage facility that we built for N$5.6 billion. It remains underutilised.

Now, a private investor proposes building another storage depot near our existing one. We must ask:

Will a parallel facility weaken Namibia’s ability to control the storage and movement of its own oil?

Where will the oil stored in the new facility come from – Nigeria or Namibia?

If Namibia begins producing its own oil, will we have to rent capacity in a foreign-owned pipeline to distribute our oil?

Could imported oil compete directly with Namibia’s future production?

NATIONAL INTEREST

The proposed pipeline to Zimbabwe, with possible extensions to Zambia, the Democratic Republic of Congo and beyond, raises similar concerns.

Whose oil will dominate this route? And once the pipeline is privately owned, will Namibia still be in a strong position to negotiate favourable terms?

Should we not first focus on building our own pipeline from the southern oil fields to Walvis Bay before considering any external proposal?

And is it not prudent to ensure that our existing national oil storage facility operates near full capacity before we approve a competing storage depot?

While the planned N$2.4 billion investment may appear attractive, it could create a long-term conflict with Namibia’s own energy strategy.

Foreign-owned infrastructure may limit our ability to manage, distribute, and benefit fully from our own resources in the future.

At this early stage of our oil and gas journey, we must carefully evaluate the national interest.

ENVIRONMENTAL CONCERNS

Parliament and the public deserve a full, transparent discussion of the benefits, risks, and unintended consequences. We must determine whether Namibia should instead invest in expanding its own storage and pipeline capacity, ensuring full control over our future petroleum economy.

Long-distance oil pipelines in Africa have often caused environmental and community damage.

Namibia’s coastline and desert ecosystems are fragile, and any new infrastructure must meet the highest environmental safeguards.

Financial temptations alone cannot be the reason for approving a project with far-reaching consequences.

Media reports suggest the project may already have received approval.

If so, has parliament examined its implications for Namibia’s oil and gas agenda? Should the Namibian nation not be allowed to deliberate and reach informed decisions about such an important issue before final decisions are made?

Comprehensive feasibility studies – economic, environmental and strategic – are essential before any commitments are finalised.

Too much of Namibia’s future depends on how we respond to this proposal. As the Afrikaans saying warns, “Hastige hond brand sy bek” (haste makes waste).

Let’s take the necessary time to make wise decisions that protect the interests of future generations.

* Seth !Nowaseb is an educationist; spnowaseb@yahoo.com

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