A new wave of tension is brewing in Nigeria’s downstream oil sector as Africa’s richest man, Aliko Dangote, has urged President Bola Tinubu to implement a ban on the importation of refined petroleum products in line with the Federal Government’s ‘Nigeria First’ policy. The move, Dangote argues, is essential to protect local refining, particularly his $20 billion Dangote Refinery, from being crippled by imported, often substandard, fuel.
At the just-concluded Global Commodity Insights Conference on West African Refined Fuel Markets — hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Insights — Dangote called on the federal government to extend the Nigeria First policy to petrol, diesel, and other petroleum products that are now produced locally.
The Nigeria First policy, introduced in May 2025, mandates that government agencies should not procure goods or services available locally without a waiver from the Bureau of Public Procurement (BPP). Dangote now insists that this directive be expanded to include refined fuels to halt the “dumping” of cheaper, toxic fuels that discourage investment in domestic refining.
“Today, we face increased dumping of cheap, often toxic petroleum products—some blended to substandard levels that wouldn’t be allowed in Europe or North America,” Dangote said. He further alleged that petroleum products subsidised in countries like Russia are finding their way into Nigeria at prices that undercut local producers.
According to him, refined fuel is now being sold in Nigeria at 60 cents per litre—cheaper than even Saudi Arabia. “That’s unsustainable,” he noted. “Governments in the U.S., Canada, and EU protect their producers. Nigeria must do the same.”
However, the call to ban imports has not gone down well with industry stakeholders. Independent marketers have warned the Federal Government against creating a monopoly in favour of Dangote.
Chinedu Ukadike, Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated, “If the government bans imports, it spells doom for competition. Dangote alone cannot meet our national fuel demand, and we’re not under a subsidy regime.”
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), was more scathing in his response. “We cannot allow a single company to dominate the market in a free economy. Importation keeps supply stable and offers multiple sources of fuel,” he said.
Energy law expert, Professor Dayo Ayoade of the University of Lagos, also opposed the proposal, warning that it could raise legal and trade concerns. “Banning fuel imports without competitive local capacity promotes monopoly and raises questions under international trade law,” Ayoade explained.
In defense of his refinery’s capacity, Dangote disclosed that Nigeria has now become a net exporter of refined fuel products. According to him, between June and July 2025, the refinery exported one million tonnes of petrol, equivalent to about 1.35 billion litres, to global markets.
He also revealed that the refinery’s current output stands at 650,000 barrels per day (bpd), and is expected to hit 700,000 bpd by December.
In a strategic move, Dangote announced his retirement as Chairman of Dangote Cement to dedicate full attention to the refinery and other key business segments. His spokesperson, Anthony Chiejina, confirmed that the move will allow Dangote to focus on refining, petrochemicals, fertilisers, and government relations.
Additionally, Dangote’s refinery is set to launch its free fuel delivery scheme on August 1, with 4,000 compressed natural gas (CNG)-powered trucks set to distribute fuel directly to filling stations and bulk buyers across the country.
While rejecting Dangote’s import ban proposal, industry players aligned with his call for the revocation of dormant refinery licences. Ukadike agreed, stating, “No one should use refinery licences as a decorative document. Nigeria needs more refineries if we’re serious about fuel self-sufficiency.”
As the Dangote Group pushes for fuel import restrictions to protect local refining, Nigeria now faces a crucial policy choice. Will the Tinubu administration bow to economic nationalism or continue to liberalise the fuel market in the interest of price stability and consumer choice?