A brewing dispute in Nigeria’s downstream oil sector intensified over the weekend as Africa’s richest man, Aliko Dangote, urged President Bola Tinubu to ban the importation of refined petroleum products under the government’s “Nigeria First” policy.
Speaking at the Global Commodity Insights Conference on West African Refined Fuel Markets in Lagos, Dangote argued that unrestricted imports of petrol, diesel, and other refined products are undermining local refineries — including his $20 billion Lagos facility — and discouraging investment.
The “Nigeria First” policy, introduced in May, restricts government agencies from importing goods that can be sourced locally. Dangote insisted that petroleum products should be added to the list, stressing that the local industry faces “dumping” of substandard fuels from abroad, including products subsidised in Russia.
“We are now facing increased dumping of cheap, often toxic petroleum products that would never be allowed in Europe or North America,” Dangote said. “This is not about monopoly but protecting domestic investment and ensuring viability for local refineries.”
Dangote further claimed his refinery’s output is sufficient for local needs, adding that Nigeria has become a net exporter of refined products, with over 1.35 billion litres of petrol exported in the past 50 days.
Marketers and Experts Reject Call for Import Ban
Despite Dangote’s plea, independent marketers, industry associations, and analysts strongly opposed the proposed ban.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), warned that banning imports would fuel inflation and create a monopoly.
“If imports stop now, we risk losing price competition since only one refinery is operational. Dangote cannot meet total demand yet,” Ukadike said.
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) also criticised the proposal. Its president, Billy Gillis-Harry, argued that in a free market, multiple sources of supply are essential for stability.
“Importation of refined products should not be banned because it helps ensure multiple sources of energy and supply,” Gillis-Harry stated.
Energy law expert Professor Dayo Ayoade of the University of Lagos cautioned that a ban could raise legal and trade concerns, while posing risks to energy security.
“You cannot rely solely on a single private refinery. That would create a dangerous monopoly. The government must maintain a liberalised market until multiple refineries come online,” he said.
Push for More Refineries
While marketers rejected the ban, they supported Dangote’s call for regulators to revoke dormant refinery licences and encourage investment in new facilities.
Dangote has announced plans to expand refinery capacity from 650,000 to 700,000 barrels per day by December, while also launching a CNG-powered truck fleet for nationwide fuel delivery starting August 1.
His push for protectionist measures comes just as he steps down from his role as chairman of Dangote Cement to focus entirely on the refinery, petrochemicals, and fertiliser ventures.
The coming weeks could test the Tinubu administration’s commitment to its “Nigeria First” policy, as the government weighs protecting domestic refining against fears of market monopoly and fuel supply instability.
