Nigeria’s richest man, Aliko Dangote, has intensified his dispute with regulators, accusing them of allowing cheap fuel imports that threaten the viability of local refineries.
Nigeria, Africa’s largest oil producer, continues to rely heavily on imported fuel, despite Dangote’s refinery being designed to reduce that dependence. Dangote warned that unchecked imports could jeopardize jobs, investment, and national energy security.
Speaking at his 650,000-barrel-per-day refinery in Lagos, he said imported fuel was being used “to checkmate domestic potential,” creating jobs abroad while Nigeria struggles to industrialize. “You don’t use imports to checkmate domestic potential,” he told reporters.
Dangote called for an official inquiry into Farouk Ahmed, head of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, citing concerns over his management of the sector and allegations of private expenditures exceeding legitimate earnings. Ahmed did not immediately respond to requests for comment but has previously argued that Dangote’s refinery seeks a monopoly on petroleum sales, despite its output being insufficient to meet local demand.
Last month, the regulator urged the president to abandon plans to ban imports of refined petroleum products, citing that local production cannot meet the country’s daily demand of 55 million litres. Dangote disputes this, claiming the regulator misrepresents the refinery’s capacity by relying on offtake statistics rather than actual production data.
The refinery, intended to end Nigeria’s dependence on imported fuel and save billions in foreign exchange, has struggled to secure sufficient crude because the regulator has not enforced a rule ensuring local refiners receive crude supply before exports. Dangote said the refinery currently imports 100 million barrels of crude annually, a figure expected to double after expansion, amid limited domestic supply.
Despite these challenges, Dangote pledged to continue expanding the refinery and protect his investment, which he described as “too big to fail.” He also reaffirmed plans to list the company on the local stock exchange and pay dividends in U.S. dollars, ensuring “every Nigerian can own a piece of the economy.”
Nigeria has long depended on imported fuel due to decades of underperforming state refineries.
