Fuel imports from Russia destroying Nigeria’s downstream sector — Dangote

Chairman of Dangote Industries Limited, Aliko Dangote, has accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of issuing licences for the importation of petroleum products from Russia, a move he said is crippling local refining and undermining Nigeria’s downstream sector.

Dangote made the allegation on Sunday during a media parley at the Dangote Refinery, where he spoke extensively on the state of the downstream oil sector and raised concerns over what he described as entrenched interests within the regulatory system.

The billionaire industrialist accused the leadership of the NMDPRA, headed by its chief executive officer, Farouk Ahmed, of colluding with international traders and fuel importers to frustrate domestic refining through the continued issuance of import licences.

According to him, despite efforts by his refinery to stabilise supply and keep pump prices low, certain interests are determined to weaken the economy by allowing large volumes of imported fuel into the country.

“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 had issued licences for the importation of about 7.5 billion litres of premium motor spirit (PMS) for the first quarter of 2026, even after assuring Nigerians of adequate domestic supply.

Dangote explained that Russian petroleum products enjoy significant price discounts, placing Nigerian refiners at a disadvantage.

“The Russian product is at a discount of between $20 and $25 per tonne, while Nigeria’s own crude is sold at a premium of about $2 to $3. That creates an imbalance of nearly $28,” he said.

“As far as I’m concerned, Nigerians are paying a very great price because this is destroying the downstream refineries.”

He lamented the steady collapse of downstream operations in the country, noting that major international oil companies have exited the sector, while local and modular refineries are struggling to survive under the current policy environment.

“When you look at it now, how many downstream actors do we have? All the foreign companies have left the country. Nobody is operating downstream,” he said.

Dangote warned that the continued issuance of import permits would make it impossible for new refineries to emerge, stressing that no investor would commit capital in an environment hostile to local production.

“There are powerful interests in the oil sector. The volume of imports being allowed into the country is totally unethical and does a disservice to Nigeria,” he said.

“We have already built our own refinery. Others will not be able to build theirs if this continues.”

He further cautioned that the downstream sector must not be sacrificed for personal gain, insisting on a clear separation between regulatory oversight and commercial trading interests.

“A trader should never be a regulator,” Dangote said, alleging that 47 licences have been issued without translating into new refinery investments due to an unfriendly operating environment.

He also claimed that local refiners are compelled to buy Nigerian crude at premiums of up to four dollars per barrel from international oil company trading arms, further eroding competitiveness.

Dangote urged the federal government to ensure crude oil taxes are assessed based on actual transaction values, warning that under-declaration of prices could lead to significant revenue losses.

In May 2023, NMDPRA chief executive Farouk Ahmed announced the agency’s readiness to issue petrol import licences, citing provisions of the Petroleum Industry Act (PIA) 2021, which empowers the authority to license qualified refiners and crude producers.

Dangote, however, insisted that unless regulatory policies are aligned with national interest, Nigeria risks weakening its refining capacity and deepening dependence on imported fuel.

Very Nigerian

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