Chairman of Dangote Industries Limited (DIL), Aliko Dangote, has accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of approving large-scale imports of petroleum products from Russia, a move he says is crippling Nigeria’s downstream sector and threatening local refining.
Dangote made the claims during a media interaction at the Dangote Refinery on Sunday, where he also levelled allegations of corruption against Farouk Ahmed, the chief executive officer of the NMDPRA.
According to the billionaire industrialist, the regulator’s leadership is working in concert with foreign traders and fuel importers to frustrate domestic refineries by continually issuing import licences, despite assurances that local supply is sufficient.
He argued that even as his refinery works to stabilise pump prices, vested interests are deliberately encouraging fuel imports at the expense of the national economy.
“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 disclosed that the NMDPRA has allegedly approved what he described as “reckless licences” covering the importation of about 7.5 billion litres of premium motor spirit (PMS) for the first quarter of 2026.
Dangote pointed to pricing distortions caused by discounted Russian fuel, saying imported products enjoy a significant cost advantage over locally refined crude.
“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.”
He lamented what he described as the near collapse of the downstream industry, noting that international oil companies have largely withdrawn from local refining operations.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 Co — all of them have gone offshore. Nobody is operating downstream.”
Dangote warned that modular refineries are already under severe pressure and face extinction if the current import policy continues, arguing that excessive fuel imports are undermining years of advocacy for domestic value addition.
“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,” he said.
“The volume of imports being allowed into the country is totally unethical and does a disservice to Nigeria.”
He cautioned that sustained imports would discourage future investments in refining.
“It is not good. We have already built our own. Other people will not be able to build their own, if this thing continues.”
Emphasising the need for regulatory independence, Dangote said commercial interests should not influence oversight of the downstream 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 also alleged that local refiners are compelled to purchase Nigerian crude at premiums of up to four dollars per barrel through the trading arms of international oil companies, further weakening their competitiveness.
Dangote urged the federal government to ensure crude oil taxes are calculated based on actual transaction values, warning that under-declaration of prices leads to revenue losses for the country.
In May 2023, NMDPRA CEO Farouk Ahmed said the regulator was prepared to issue petrol import licences to qualified companies, explaining that the Petroleum Industry Act (PIA) 2021 empowers the authority to grant such approvals to refiners and crude oil producers that meet statutory requirements.
