Aliko Dangote, the chairman of the Dangote Industries Limited (DIL), has accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of issuing licences for the importation of petroleum products from Russia.
Dangote spoke on the health of the downstream sector and a
range of other industry issues during a media parley at his refinery on Sunday,
where he made allegations of corruption against Farouk Ahmed, the authority’s
chief executive officer (CEO).
The billionaire also accused the leadership of the NMDPRA of
colluding with international traders and oil importers to frustrate local
refining through the continued issuance of import licences for petroleum
products.
He said despite his refinery’s effort to keep pump prices
low, “some people are really bent on destroying the economy of the country by
making sure that they keep issuing licenses to bring in products from Russia”.
The businessman disclosed that the NMDPRA has issued
“reckless licences” for the importation of “about 7.5 billion litres” of
premium motor spirit (PMS) for the first quarter (Q1) of 2026, despite assuring
Nigerians of adequate supply.
“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.
“When you look at it now, how many downstream actors do we
have? All the foreign companies have actually left the country — Shell and Co —
all of them have gone offshore. Nobody is operating downstream.”
According to the Dangote Group chairman, modular refineries
are already struggling under the current policy environment and on the brink of
extinction, while the persistent issuance of import permits further weakens the
sector.
He said the downstream sector is under severe strain,
alleging the presence of entrenched interests that profit from fuel imports at
the expense of national development.
“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.”
‘THE DOWNSTREAM SECTOR MUST NOT BE DESTROYED BY PERSONAL
INTERESTS’
Dangote stressed the need for a clear separation between
regulatory oversight and commercial interests, warning that allowing traders to
influence regulation would undermine the integrity of the sector.
“The downstream sector must not be destroyed by personal
interests. A trader should never be a regulator. Forty-seven licences have been
issued, yet no new refineries are being built because the environment is not
conducive,” he said.
He further alleged that domestic refiners are forced to buy
Nigerian crude at premiums of up to four dollars per barrel from the trading
arms of international oil companies, placing them at a competitive
disadvantage.
He called on the government to ensure crude oil taxes are
assessed based on actual transaction values, warning that the current system
allows under-declaration and revenue losses.
In May 2023, Farouk Ahmed, NMDPRA’s chief executive officer
(CEO), announced the authority’s readiness to issue licences to companies
interested in petrol importation.
He said the Petroleum Industry Act (PIA) of 2021 empowers
the NMDPRA to issue licences to refiners or producers of crude oil who meet the
requirements.
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