Dangote’s troubles

President of the Dangote Industries Limited, Alhaji Aliko Dangote, has launched a fresh offensive against the regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), insisting the leadership of the authority is sabotaging efforts at boosting local refining.

At a press conference on Sunday, at the Dangote Petroleum Refinery, he said imports were being used to checkmate domestic potential, creating jobs abroad while Nigerians struggle to industrialize.

“You don’t use imports to checkmate domestic potentials”, he said. Dangote then accused the leadership of the NMDPRA of frustrating local refining through the continued issuance of petroleum product import licences, “despite growing domestic refining capacity”.

According to Dangote, the regulator’s actions have sustained Nigeria’s dependence on fuel imports and discouraged investment in local refining.

Dangote doubled down on his criticism of the regulator, calling for the investigation of the Chief Executive Officer of the NMDPRA, Engr Farouk Ahmed.

He claimed that import licences covering about 7.5 billion litres of Premium Motor Spirit (PMS) had reportedly been issued for the first quarter of 2026, even as local refiners struggle to operate profitably.

Dangote also alleged that Engr. Ahmed was living beyond his legitimate means, citing claims that four of his children attend secondary schools in Switzerland at a cost of several million dollars.

He said the allegations raise serious concerns about conflicts of interest and the integrity of regulatory oversight in the downstream petroleum sector.

“I am not calling for his removal, but for a proper investigation,” Dangote said, adding, “He should be required to account for his actions and demonstrate that he has not compromised his position to the detriment of Nigerians.”

He urged the Code of Conduct Bureau and other relevant agencies to investigate the matter, adding that he was prepared to provide evidence to support his claims if challenged.

Dangote warned that continued importation of refined products was harming local production and placing modular refineries on the brink of collapse. He also criticised what he described as entrenched interests benefiting from fuel imports at the expense of national development.

On pricing, Dangote assured Nigerians that the pump price of PMS would fall further, announcing that petrol would sell at no more than N740 per litre from Tuesday, starting in Lagos, following a reduction in the refinery’s gantry price to N699 per litre. He said MRS filling stations would be the first to implement the new price.

He added that the refinery had reduced its minimum purchase requirement to enable more marketers to participate and was prepared to deploy its Compressed Natural Gas (CNG) trucks nationwide to ensure affordability.

Dangote maintained that Nigerians would ultimately benefit from domestic refining, even as fuel importers incur losses. He reiterated plans to list the Dangote Petroleum Refinery on the Nigerian Exchange to allow Nigerians to own shares in the facility. “This refinery is for Nigerians first. I am not giving up,” he added.

There has not been any official comment from the NMDPRA on the allegations as of press time. When contacted, the spokesperson of the NMDPRA, George Ene-Ita, said no comment.

The battles

Since the commencement of operations by the Dangote Refinery in January 2024, the industrialist has had a running battle with the NMDPRA.

The conflict started in July 2024, when the Chief Executive Officer of NMDPRA, Engineer Farouk Ahmed, stated that products from local refineries, including Dangote’s, were of inferior quality compared to imports.

He also referred to the refinery as still at a pre-commissioning stage and unlicensed for full operation and accused Dangote of seeking a monopoly on product supply for the nation’s energy security.

Dangote, thereafter, refuted the claims about product quality and the House of Representatives launched an investigation and called for Ahmed’s suspension over his remarks.

In August, the NMDPRA maintained that the refinery was still in the pre-commissioning phase and had not been issued an operational license.

In October 2025, Ahmed’s team maintained that the NMDPRA allowed local refiners to produce diesel with specific sulphur content until January 2025, in line with ECOWAS approvals.

However, Dangote-supervised tests showed their diesel had much lower sulphur content, contradicting earlier official claims.

At the time, the House of Representatives said the NMDPRA boss must go on suspension over his utterances on high sulphur content in the diesel being produced at Dangote Refinery pending conclusive investigations into the allegations by the House.

The call was made after adopting a motion of urgent public importance moved by Rep. Esosa Iyawe.

Presenting the motion, he recalled that, the Chief Executive of the NMDPRA has stated that the diesel produced by the Dangote refinery is inferior to the ones imported into the country, and that their fuel had a large content of sulphur, which he put at between 650 to 1,200ppm pm.

He said, “In their defence, Dangote called for a test of their products, which was supervised by members of the House of Representatives, wherein it was revealed that Dangote’s diesel had a sulphur content of 87.6 ppm (parts per million), whereas the other two samples diesel imported showed sulphur levels exceeding 1800 pm and 2000 pm respectively, thus disproving the allegations made by the NMDPRA boss.

“Allegations have been made that the NMDPRA was giving licences to some traders who regularly import high-sulphur content diesel into Nigeria, and the use of such products poses grave health risks and huge financial losses for Nigerians.”

Fight with NNPCL

Dangote also had a running battle with the former management of the NNPCL led by Melee Kyari to the effect that he accused the then Group Managing Director of operating a blending plant in Malta. The billionaire said the areas of the blending plants were known.

“Some of the terminals, some of the NNPCL people and some traders have opened a blending plant somewhere off Malta. We all know these areas. We know what they are doing,” the billionaire said.

Kyari denied the allegations, saying he was not aware of any employee of the NNPCL that owns or operates a blending plant in Malta or anywhere else in the world.

He, however, said blending plants in Malta or any part of the world has no influence over NNPC’s business operations and strategic actions.

He said: “I am inundated by enquiries from family members, friends and associates on the public declaration by the President of Dangote Group that some NNPCL workers have established a blending plant in Malta, thereby impeding procurements from local production of petroleum products.”

Daily Trust reports that following the appointment of the new GMD, Bayo Ojulari, the cat and mouse relationship between the refinery and the national oil company reduced.

Why Dangote went for the jugular

Daily Trust learnt that while Dangote insists it is able to meet the local demand, the NMDPRA has continued to disagree with the refinery.

For instance on October 31, the refinery disclosed that the facility now delivers 45m litres of PMS.

Similarly, it said the facility also delivers 25 million litres of diesel on a daily basis while reaffirming its commitment to ensuring a steady and uninterrupted supply of the products nationwide.

The Group Chief Branding and Communications Officer, Dangote Industries Limited, Anthony Chiejina, insisted that its daily production capacity now exceeds the domestic demand.

Daily Trust recalls that the statement from Dangote came a day after the approval of 15 per cent duty on importation of PMS, Diesel and Jet fuel became public amidst divergent reactions from stakeholders in the downstream sector.

While the decision was applauded by some stakeholders and economists as a measure to protect the local refineries, some major marketers kicked against it, warning that it might trigger fuel price hike.

Our correspondent reports that despite the existence of Dangote Refinery which commenced operation over a year ago, importation of petroleum products has continued unabated with about 67 per cent of the daily consumption still imported while Dangote is insisting that its 650,000 barrel per day refinery can meet the local demand.

Dangote said, “Our refinery is currently loading over 45 million litres of PMS and 25 million litres of diesel daily, which exceeds Nigeria’s demand.

“We are working collaboratively with regulatory agencies and distribution partners to guarantee efficient nationwide delivery. Dangote remains steadfast in its commitment to meeting the energy needs of Nigerians. This significant production capacity not only guarantees local supply but also enhances energy security and reduces dependence on imports.”

Also in November, the refinery announced plans to supply one billion, five hundred million litres of Premium Motor Spirit (PMS) monthly to the Nigerian market in December 2025 and January 2026, a move aimed at ensuring uninterrupted nationwide fuel availability through the festive season and into the New Year.

It further stated that the refinery will make available 50 million litres of PMS daily beginning December 1.

“In line with our commitment to national wellbeing, and consistent with our track record of ensuring a holiday season free of fuel scarcity, the Dangote Petroleum Refinery will supply 1.5 billion litres of PMS to the Nigerian market this month. This represents 50 million litres per day. We are formally notifying the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of this commitment. We will supply another 1.5 billion litres in January and increase to 1.75 billion litres in February, which translates to over 60 million litres per day,” Dangote said.

NMDPRA disputes Dangote’s figure

Despite releasing several figures and statements affirming its readiness to meet the local demand, the statement coming from the regulator suggests otherwise.

Earlier in December, the NMDPRA stated that an average of 71.5 million litres per day of Premium Motor Spirit (PMS) was supplied in the month of November.

This is 25.5 million litres higher than the 46 million litres supplied in the month of October.

A factsheet by the commission said the high figure was due to low supply recorded in September and October 2025, below the national demand threshold and the need for boosting national stock level to meet the peak demand period of end-of-year festivities.

“Imports by the NNPCL, the supplier of last resort, in November 2025, to build inventory and further guarantee supply during the peak demand period.  12 vessels programmed to discharge into October, but spilled into November 2025 domestic supply volumes are based on disport/discharged figures and refinery truck-outs,” it said.

But breakdown shows 52.1 million litres per day was imported while 19.5 million litres per day was produced locally through the Dangote refinery.

For consumption, the factsheet said 52.9 million litres per day was consumed during the month, a decrease from the 56.7 million litres in October. 15.4 million litres/day diesel was consumed and 2.5 million litres/day of aviation fuel was consumed while 3,992mt/day of cooking gas was consumed.

The various figures emanating from NMDPRA, however, counter Dangote’s boast of its capacity to meet local demand.

Reps intervene

Meanwhile the House of Representatives Joint Committee on Petroleum Resources (Downstream and Midstream) has stepped in to address the renewed tension in Nigeria’s downstream petroleum sector, following public concerns, allegations and counter-claims involving the leadership of Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The committee has summoned both parties to appear before it to present their grievances and allegations, while directing them to halt all media hostilities pending the outcome of its investigation, which it said would be concluded within days.

The chairmen of the joint committee, Ikenga Imo Ugochinyere and Henry Okogie, disclosed this on Monday after an emergency meeting convened in response to what they described as “growing tension” capable of undermining the fragile stability recently achieved in the sector.

Speaking after the meeting, Ugochinyere said the committee was compelled to act swiftly to prevent further escalation, especially at a time when government and industry stakeholders are working to stabilise supply, pricing and regulation in the post-subsidy era.

“The key issue that necessitated this emergency meeting was the growing tension that has returned to the downstream sector as a result of concerns and allegations raised by Alhaji Aliko Dangote against the NMDPRA,” he said.

He added that the development was coming at a time when the committee was keen on safeguarding the relative stability achieved in the sector.

Ugochinyere said the committee resolved to formally invite the President of the Dangote Group, Alhaji Aliko Dangote, and the leadership of the NMDPRA to appear before it and provide detailed explanations on the issues fuelling the dispute, with a view to reaching concrete resolutions.

According to him, only a clear understanding of the underlying issues would enable the National Assembly to broker lasting solutions without fear or favour.

“We can only find sustainable solutions when we identify the critical issues leading to this tension. That is why the committee resolved to write to Alhaji Aliko Dangote and the NMDPRA leadership to meet with us and give insights into what is driving these allegations and counter-allegations,” he said.

In a move aimed at de-escalating the situation, the committee also appealed to both parties to suspend public exchanges and media comments while the legislative intervention is ongoing.

“We resolved to plead with the contending parties to cease fire, especially media comments, so that the situation does not escalate further,” Ugochinyere noted, adding that the committee had the capacity to resolve the matter once and for all.

He revealed that the committee had already received petitions bordering on critical industry issues, including the issuance of import licences and whether domestic refineries have the capacity to meet Nigeria’s daily petroleum demand.

There is need for investigation – Dr Okeke

An oil and gas expert, Dr. Marcel Okeke, backed the call for investigation of the NMDPRA, saying it is good for accountability.

He said, “I know that there are allegations flying back and forth like that. My view is that the man should be investigated as Dangote is asking. He is not saying let him be punished or let him be removed but he is saying he should be investigated, especially the allegation that he is paying $5m on his children’s school fees abroad. Let that be investigated by the appropriate government agencies. That would be my advice.”

On his part, Dr. Ayodele Oni, another oil and gas industry analyst stated that importation has always been used to bridge the local demand gap.

“If we are not producing sufficiently, they can import. The PIA said when we have enough, there should be backward integration. The information seems to suggest that Dangote isn’t doing enough yet. That is the issue. If Dangote isn’t producing enough yet, then it is difficult to argue against what the regulator is saying. The data we have does not suggest Dangote has the capacity. My view is that if we produce sufficiently, it would be improper for NMDPRA to continue to issue import licenses but if we do not, then they can.

“The data suggest that we do not refine sufficient volume unless the data is wrong, then we need alternative data,” he said.

On the call for investigation, he stated that the information he heard was that Farouk allegedly has a business abroad which is generating huge income.

Wumi Iledare, Professor Emeritus of Petroleum Economics explained that what Nigeria is witnessing is not a crisis, but a structural reset of a downstream market that for decades was heavily dependent on imported petroleum products.

“The entry of the Dangote Refinery has fundamentally altered the market structure by introducing large-scale domestic refining capacity into an import-dominated system. The resulting price movements should therefore be understood as market adjustment dynamics, not instability.

“The current price competition—often described as a “price war”—is best characterised as oligopolistic behaviour. Major players, including the Dangote Refinery, NNPCL, and independent marketers, are adjusting prices in response to a new cost and supply reality. This reflects competitive positioning and market share protection rather than market chaos.

“Prices have declined largely because local refining eliminates exposure to foreign exchange volatility, shipping costs, and port inefficiencies. In addition, economies of scale and integrated logistics give the Dangote Refinery a structural cost advantage over imported products. As a result, import-dependent supply has become less competitive, accelerating the long-anticipated transition toward import substitution.”

According to him, the Dangote Refinery has changed Nigeria’s downstream market. Whether Nigerians fully benefit from this transformation will depend on the quality of regulation, governance discipline, and commitment to fair competition.

From Abdullateef Aliyu (Lagos), Itodo Daniel Sule & Faruk Shuaibu (Abuja)

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