Aliko Dangote, the esteemed chairman of Dangote Industries Limited (DIL), has leveled serious allegations against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), accusing them of recklessly issuing licences for the importation of petroleum products from Russia.
During an engaging media session at his refinery on Sunday, Dangote addressed the vitality of the downstream sector and a multitude of pressing industry concerns, making pointed accusations of corruption against Farouk Ahmed, the CEO of the authority.
The billionaire further claimed that the leadership of the NMDPRA is conspiring with international traders and oil importers to undermine local refining capabilities by persistently granting import licences for petroleum products.
He asserted that despite his refinery’s unyielding efforts to maintain low pump prices, “some individuals are intent on sabotaging the economy of the nation by continuously issuing licences for the importation of products from Russia.”
The business mogul revealed that the NMDPRA has irresponsibly issued “reckless licences” for the importation of “approximately 7.5 billion litres” of premium motor spirit (PMS) for the first quarter of 2026, despite prior assurances to Nigerians about sufficient supply.
“The products from Russia are offered at a substantial discount, ranging from $20 to $25 less per ton of crude,” he elaborated.
“In contrast, Nigeria’s own is starting at a premium of $2 to $3, thereby creating a disparity of about $28. From my perspective, Nigerians are paying an exorbitant price, as this practice is crippling the downstream refineries.”
Moreover, he pointed out, “If we assess the present situation, how many downstream players do we actually have? All the foreign entities—like Shell and others—have completely exited the country. There is virtually no downstream operation happening.”
According to the chairman of the Dangote Group, modular refineries are already faltering under the current policy climate and teetering on the brink of extinction, while the relentless issuance of import permits continues to undermine the industry.
He emphasized that the downstream sector is enduring intense pressure, alleging a presence of entrenched interests that profit from fuel imports at the detriment of national progress.
“There are formidable interests entrenched in the oil sector. It is alarming that African nations keep importing refined products despite prolonged appeals for value addition and domestic refining,” Dangote noted.
“The magnitude of imports being permitted into the nation is entirely unethical and undermines Nigeria’s interests.
“It is detrimental. We have already established our infrastructure. Others will struggle to develop their own if this trend persists.”
‘THE DOWNSTREAM SECTOR MUST NOT BE SABOTAGED BY PERSONAL INTERESTS’
Dangote underscored the necessity for a distinct delineation between regulatory oversight and commercial ambitions, cautioning that permitting traders to shape regulation would compromise the sector’s integrity. “The downstream sector must not be dismantled by personal motives. A trader should never assume the role of a regulator. A staggering forty-seven licences have been issued, yet no new refineries are emerging due to an inhospitable environment,” he asserted.
He further accused domestic refiners of being compelled to purchase Nigerian crude at premiums reaching up to four dollars per barrel from the trading divisions of international oil companies, putting them at a significant competitive disadvantage.
He urged the government to ensure that crude oil taxes are calculated based on actual transaction values, warning that the prevailing system allows for under-declaration and losses in revenue.
In May 2023, Farouk Ahmed, the CEO of NMDPRA, proclaimed the authority’s readiness to issue licences to companies keen on petrol importation.
