Billionaire industrialist Aliko Dangote has urged President Bola Tinubu to ban the importation of refined petroleum products into Nigeria, citing unfair competition from cheap, often toxic fuel imports that are harming local refineries. Dangote made this call at the Global Commodity Insights Conference on West African Refined Fuel Markets, arguing that the “Nigeria First” policy should apply to the petroleum sector to protect domestic producers. He claimed that fuel imports are killing local refining, discouraging further investments, and creating an uneven playing field.
According to Dangote, Africa loses an estimated $90 billion annually due to the importation of inferior and environmentally damaging fuels that could be refined locally. He lamented that despite Africa producing around 7 million barrels of crude oil daily, the continent refines only about 40% of its fuel needs, resulting in massive imports of refined petroleum products. Dangote emphasized that this paradoxical situation is exporting jobs and importing poverty, and urged African governments to adopt protectionist policies like those in the US, Canada, and EU to shield domestic industries.
However, oil marketers and industry experts have rejected Dangote’s call, citing concerns over monopoly and inflation. The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) argue that banning fuel imports would give Dangote’s refinery undue dominance, leading to price exploitation. They also point out that the refinery alone cannot meet Nigeria’s fuel demand, and importation helps stabilize domestic prices.
Professor Dayo Ayoade, an energy expert at the University of Lagos, warned that banning fuel imports would promote monopolistic tendencies and pose risks to energy and national security. “You don’t give one private entity a monopoly over a strategic national asset. That’s dangerous,” he said. Ayoade emphasized the need for diverse sources of petroleum products and encouraged the government to liberalize the sector and attract more investments in refining capacity.
The controversy highlights the complexities of Nigeria’s fuel market, with Dangote’s $20 billion refinery capable of producing 650,000 barrels per day, but still facing challenges in accessing domestic crude and competing with cheap imports. As the debate rages on, stakeholders agree on the need for more local refining capacity, with Dangote calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to revoke dormant refinery licenses and encourage genuine investors.
