Oil Marketers Kick As Dangote Seeks Ban On Fuel Imports
The President of Dangote Group, Aliko Dangote, has urged President Bola Tinubu to extend the ‘Nigeria First’ policy to refined petroleum products, a proposal that met stiff resistance from oil marketers and industry experts on Sunday.
Speaking at the Global Commodity Insights Conference on West African Refined Fuel Markets held in Abuja, Dangote called for the ban on the importation of petrol, diesel, and other refined petroleum products, arguing that continued imports were crippling local refining efforts and threatening investments in the sector.
The Nigeria First policy, introduced in May 2024, prohibits government ministries, departments, and agencies from importing goods or services that are already available within the country. The policy mandates that no foreign procurement should proceed without a valid justification and a waiver from the Bureau of Public Procurement.
Citing this policy, Dangote argued that the same principle should be used to protect local refiners, such as his recently commissioned Dangote Refinery, from the influx of cheaper imported fuels.
He further claimed that imported fuels, including toxic blends banned in Europe, were being dumped in Nigeria, giving importers an unfair edge and undermining safety and quality standards.
He said, “And to make matters worse, we are now facing increased dumping of cheap, often toxic petroleum products, some of which are blended to substandard levels that would never be allowed in Europe or North America.”
Dangote mentioned that some importers bring fuel or crude oil into Nigeria that is subsidised in Russia. This, he said, affects local pricing, forcing refiners to drop prices below their costs.
He said, “Due to the price caps on the Russian petroleum products, discounted petroleum products produced in Russia or with discounted Russian crude find their way to Africa, severely undercutting our local production, which is based on full crude pricing. This has created an unlevel playing field in most African countries. Petrol and diesel are sold for about a dollar net of taxes.
“In Nigeria, due to this unfair competition, this price is just about 60 cents, even cheaper than Saudi Arabia, which produces and refines its own oil. This is due to the fact that we are having too much dumping. To remain viable, we urge the governments across Africa to take deliberate steps as the United States, Canada, and the European Union have done to protect domestic producers from unfair competition.”
The richest man in Africa said this was not to monopolise the sector but to produce local investments. He noted that those who have the resources to invest in Nigeria continue to take their resources out of the country while they criticise local investors.
“Let me take this opportunity to address concerns around monopoly and dominance. The reality is that too many people who have the means and the opportunity to contribute meaningfully to our nation’s growth choose instead to criticise from the sidelines while investing their wealth abroad,” Dangote said.
To prove that his $20 billion refinery can meet local fuel needs, Dangote disclosed that Nigeria has become a net exporter of petroleum products, having exported approximately 1.35 billion litres of petrol to other countries worldwide in 50 days.
According to Dangote, between June and July 2025, the refinery exported up to 1 million tonnes of petrol, which is approximately 1.35 billion litres when converted.
“Today, Nigeria has actually become a net exporter of refined products. Before I came on the podium, I asked my people how many tonnes of PMS we have actually exported. From June beginning to date, we have exported about 1 million tonnes of PMS, within the last 50 days,” he said.
Marketers Condemn Dangote’s Call
However, marketers disagreed with Dangote, urging the Federal Government not to consider adding petroleum products to the list of items banned from importation.
Speaking with Punch on Sunday, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, stated that independent marketers would not support this idea, as it would spell doom for the sector.
Ukadike said, “We independent marketers will depart from that request. If the government does that, that means we will not be able to check inflation and monopoly, since it is the only refinery operating in the country now. We should continue to import even as we buy locally.
“I heard that the NMDPRA stated clearly that Dangote cannot produce all the fuel that the country needs. We will appreciate it if the country allows importation to continue since we are not paying subsidy.”
Reacting to Dangote’s claim that importation would kill businesses and local refineries, Ukadike differed.
“Importation won’t kill local businesses or refineries; it will strengthen them. It will ensure local refineries step up their game. I don’t agree with Dangote on this,” he said.
Also, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, kicked against the call to ban fuel Importation. He said no one company should be allowed to dominate the downstream sector in a free economy.
While acknowledging the need to ban the importation of certain goods, he stated that these should not include fuel, emphasising that Nigeria requires multiple sources of energy.
Gillis-Harry stated, “I don’t agree with Dangote. We are running a free economy. There’s no reason why any one company should have an overarching value on the entire industry.
“Importation is not killing the economy. Importation is stabilising the sources of petroleum products. Importation of all products is useful. However, those that can be produced in Nigeria, like toothpicks, garri, egusi soup, cassava, and others like that, should be banned.
“But importation of refined petroleum products should not be banned because it helps to ensure that there are multiple sources of energy and replenishment.”
