Fuel Import Ban Proposal Sparks Industry Pushback as Dangote Defends Local Refining – City 105.1 FM

LAGOS — Aliko Dangote, President of the Dangote Group, has urged President Bola Tinubu to extend the Federal Government’s ‘Nigeria First’ policy to include refined petroleum products, effectively banning the importation of petrol, diesel, and other fuels that are now being produced locally.

Speaking at the Global Commodity Insights Conference on West African Refined Fuel Markets—co-hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global—Dangote emphasized that continuous importation is undermining local refiners and discouraging much-needed investment.

According to Dangote, Nigeria is being flooded with cheap and substandard petroleum products, many of which are subsidized in countries like Russia and would not meet environmental or safety standards in Europe or North America.

“We are facing a surge in the dumping of low-grade, sometimes toxic, petroleum products. This unfair competition is making it extremely difficult for local refiners to operate sustainably,” Dangote stated. “The same ‘Nigeria First’ policy that guides procurement should also apply to refined petroleum products.”

He stressed that this request is not about monopolizing the fuel market but about creating a fair environment for domestic investment and production. Dangote also took a swipe at wealthy Nigerians who prefer to invest abroad while criticizing local efforts to grow Nigeria’s economy.

Nigeria Now a Net Exporter — Dangote

To support his claim of sufficient local refining capacity, Dangote revealed that his $20 billion refinery has exported over 1 million tonnes (roughly 1.35 billion litres) of petrol within 50 days, from June to July 2025.

“Nigeria has become a net exporter of refined petroleum products,” he stated, adding that this milestone proves the refinery’s ability to meet both domestic and international demand.

Marketers Reject Ban Proposal

However, Dangote’s proposal has met stiff resistance from downstream industry players and stakeholders, who warned that banning fuel imports would lead to monopolistic practices and create instability in the market.

Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), dismissed the idea, warning that it could damage competition.

“If the government adopts this policy, it will essentially hand control of the entire sector to one player. That’s dangerous for pricing, availability, and fairness. Importation keeps the market competitive,” Ukadike argued.

Similarly, Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), said no single company should dominate the downstream space in a free economy.

“We support import restrictions on products like toothpicks or garri, not fuel. Energy diversity is crucial for national stability,” he stated.

Experts Caution Against Monopoly

Academic and energy law expert, Prof. Dayo Ayoade of the University of Lagos, also cautioned against a policy that could grant a monopoly to one private entity.

“A blanket ban on fuel imports would not only violate principles of fair trade but also endanger national energy security. We can’t depend solely on one refinery,” he warned, adding that international trade rules generally frown upon such bans.

He called for a more robust refinery network before any import restrictions are implemented.

Call for More Functional Refineries

Interestingly, while the industry rejected Dangote’s call for a ban, there was consensus on the need to revamp and expand local refining capacity.

Dangote and IPMAN both criticized dormant refinery licence holders who have failed to begin construction or production. Dangote urged the NMDPRA to revoke such licences and encourage serious investors.

“We need more active players in the refining space, not just one. Multiple refineries would enhance competition and boost exports,” Ukadike agreed.

Dangote Shifts Focus to Energy Sector

Meanwhile, Dangote recently stepped down from his role as Chairman of Dangote Cement to focus more fully on his refinery and other major ventures, including petrochemicals and fertiliser production. His decision was confirmed by a company statement, noting that he would dedicate more attention to government relations and the energy sector.

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