Chairman of Dangote Industries Limited (DIL), Aliko Dangote, has accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of issuing what he described as “reckless” licences for the importation of petroleum products from Russia.
Gatekeepers News reports that Dangote made the allegation on Sunday during a media parley at the Dangote Petroleum Refinery, where he spoke on the state of Nigeria’s downstream sector and accused the leadership of the NMDPRA, including its Chief Executive Officer, Farouk Ahmed, of actions he said were undermining local refining.
According to Dangote, the authority has continued to issue import licences in collaboration with international traders and oil importers, despite assurances of adequate local supply.
He alleged that licences had been granted for the importation of about 7.5 billion litres of Premium Motor Spirit (PMS) for the first quarter of 2026, a move he said threatens the survival of domestic refineries.
“Some people are really bent on destroying the economy of the country by making sure that they keep issuing licences to bring in products from Russia,” Dangote said.
He explained that petroleum products imported from Russia are sold at steep discounts, creating an uneven playing field for local refiners.
“The Russian product is at a discount. It is at $20 to $25 discount in terms of tonnage of crude,” he said.
“Nigeria’s own is starting from a premium of $2 to $3, so there is an imbalance of about $28. As far as I’m concerned, Nigerians are paying a very great price, because it is destroying the downstream refineries.”
Dangote said the continued inflow of imported fuel has weakened the downstream sector, noting that most international oil companies have exited domestic refining operations.
“When you look at it now, how many downstream actors do we have? All the foreign companies have actually left the country — Shell and others — all of them have gone offshore. Nobody is operating downstream,” he said.
He warned that modular refineries are already struggling and nearing collapse due to policy inconsistencies and excessive import permits.
“There are powerful interests in the oil sector. It is troubling that African countries continue to import refined products despite long-standing calls for value addition and domestic refining,” Dangote said.
“The volume of imports being allowed into the country is totally unethical and does a disservice to Nigeria.
“It is not good. We have already built our own. Other people will not be able to build their own if this thing continues.”
‘Downstream Sector Must Not Be Destroyed’
Dangote stressed the need for a strict separation between regulation and commercial interests, warning that allowing traders to influence regulatory decisions would damage the integrity of the sector.
“The downstream sector must not be destroyed by personal interests. A trader should never be a regulator,” he said.
“Forty-seven licences have been issued, yet no new refineries are being built because the environment is not conducive.”
He also alleged that domestic refiners are compelled to buy Nigerian crude at premiums of up to $4 per barrel from the trading arms of international oil companies, placing them at a competitive disadvantage.
Dangote called on the Federal Government to ensure that crude oil taxes are assessed based on actual transaction values, warning that the current system enables under-declaration and revenue losses.
In May 2023, NMDPRA CEO Farouk Ahmed announced the authority’s readiness to issue licences to companies interested in petrol importation, noting that the Petroleum Industry Act (PIA) 2021 empowers the regulator to grant such licences to qualified refiners and crude producers.
