Chairman of Dangote Industries Limited, Alhaji Aliko Dangote, has criticised the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over what he described as the indiscriminate issuance of licences for the importation of petroleum products, warning that the practice threatens the survival of Nigeria’s downstream oil sector.
Dangote made the remarks during a media interaction at his refinery on Sunday, where he spoke on the state of the downstream industry and broader challenges facing the oil and gas sector. He also alleged misconduct within the regulatory authority, naming its Chief Executive Officer, Farouk Ahmed.
According to Dangote, the continued approval of import licences, particularly for products sourced from Russia, undermines local refining and weakens the economy. He alleged that the NMDPRA leadership is colluding with international traders and oil importers to frustrate domestic refiners.
He disclosed that licences had been issued for the importation of about 7.5 billion litres of premium motor spirit (PMS) for the first quarter of 2026, despite assurances of adequate domestic supply. He noted that Russian products are sold at heavy discounts, creating an uneven playing field for local operators.
Dangote said the price imbalance has contributed to the decline of the downstream sector, with international oil companies no longer operating locally. He added that modular refineries are struggling to survive under the current policy environment.
He warned that the continued influx of imported fuel places the downstream sector under severe strain and benefits vested interests at the expense of national development, describing the volume of imports as unethical and damaging.
Calling for regulatory integrity, Dangote stressed that there must be a clear separation between regulatory oversight and commercial interests, warning that traders should not influence regulation in the sector.
He also alleged that domestic refiners are forced to buy Nigerian crude at premium prices from international oil companies and urged the government to ensure crude oil taxes are assessed based on actual transaction values to prevent revenue losses.