The President of Dangote Group, Alhaji Aliko Dangote, has urged President Bola Tinubu to extend the Federal Government’s ‘Nigeria First’ policy to include a ban on imported refined petroleum products. However, the proposal has drawn sharp criticism from key players in the downstream oil sector, who warn it could lead to a monopoly and stifle competition.
The ‘Nigeria First’ directive, introduced in May, prohibits government agencies from procuring goods and services available locally without proper justification and a waiver from the Bureau of Public Procurement. At the Global Commodity Insights Conference on West African Refined Fuel Markets, Dangote argued that fuel imports are undermining local refining efforts and discouraging investment in the sector.
According to Dangote, African governments must protect their domestic producers from what he described as unfair dumping of cheap and often substandard fuel—some allegedly subsidised and imported from countries like Russia. He emphasized that his $20 billion refinery can meet local demand, citing exports of 1.35 billion litres of petrol within just 50 days between June and July 2025.
“The Nigeria First policy should also apply to petroleum products. We must protect our investments from unfair dumping and toxic imports that would not be allowed in Europe or North America,” Dangote said.
While insisting that his intention is not to monopolize the industry, Dangote lamented that many wealthy Nigerians prefer investing abroad while criticizing those building local capacity. “Too many people with means prefer to sit on the sidelines and invest elsewhere,” he noted.
Marketers Push Back
Industry stakeholders, however, disagree strongly with the proposal. The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) rejected any suggestion of banning fuel importation.
Chinedu Ukadike, IPMAN’s National Publicity Secretary, warned that such a ban would encourage monopoly and make it difficult to regulate pricing or ensure product availability. “We will not support that idea. Dangote alone cannot meet Nigeria’s fuel demand. Importation is necessary to keep prices stable,” he said.
He also challenged Dangote’s claims, saying, “Importation strengthens the sector. It pushes local refineries to become more competitive.”
PETROAN President Billy Gillis-Harry echoed similar concerns, stating that Nigeria’s free-market economy should not allow a single company to dominate. “Importation stabilises the market and ensures diversity of supply. We need multiple energy sources, not restrictions that could create artificial scarcity,” he argued.
Expert Opinion
Energy law expert Professor Dayo Ayoade from the University of Lagos also warned against granting Dangote’s request. He said banning fuel imports would be legally and economically dangerous, risking monopolistic control and threatening energy security.
“For national and energy security, no single refinery should control our fuel supply. We must liberalise the market and allow more players in,” he said.
He added that international trade laws frown upon such bans and advised the government to focus on making local production more competitive rather than restricting imports.
Call for More Refineries
Despite the disagreement, there was some consensus on the need to expand Nigeria’s refining capacity. Dangote urged regulators to revoke refinery licenses from inactive holders, a position supported by IPMAN.
“You can’t hold a refinery licence and not develop it. We need more operational refineries to increase exports and self-sufficiency,” Ukadike stated.
Dangote, who recently stepped down as Chairman of Dangote Cement to focus on his refinery and petrochemicals ventures, said his refinery will hit 700,000 barrels per day capacity by December, up from its current 650,000 BPD.
While his refinery marks a major milestone for Nigeria, the debate continues over how best to balance local investment, fair competition, and consumer interests in the downstream petroleum sector.
