• Marketers, Analysts Warn Against Monopoly, Demand Free Market

The President of Dangote Group, Alhaji Aliko Dangote, has urged President Bola Tinubu to include refined petroleum products in the list of items banned under the Federal Government’s Nigeria First policy — a proposal that has drawn strong opposition from independent marketers and energy experts.

The Nigeria First policy, introduced in May 2025, bars government agencies from importing goods and services that can be sourced locally. Dangote, speaking at the Global Commodity Insights Conference on West African Refined Fuel Markets, jointly hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Insights, said refined petroleum products should be covered under the policy to protect local investments.

“The Nigeria First policy announced by His Excellency, President Bola Tinubu, should apply to the petroleum products sector and all other sectors,” he stated.

According to Dangote, continued fuel importation undermines domestic refineries and discourages further investments. He claimed that importers are “dumping” substandard and often toxic fuel into Nigeria, including products subsidised in Russia, thereby distorting the local market.

“Some of these imported fuels would never be allowed in Europe or North America,” he said. “In Nigeria, petrol and diesel are sold for as low as 60 cents per litre—cheaper than in oil-producing Saudi Arabia—due to excessive dumping.”

To demonstrate the capacity of his $20 billion refinery, Dangote revealed that Nigeria has already become a net exporter of refined petroleum products. He said approximately 1 million tonnes (about 1.35 billion litres) of petrol were exported between June and July 2025.

He stressed that his call for import restrictions is not to monopolise the industry but to protect local investors. “Many with the resources to invest in Nigeria choose to invest abroad, while criticising those of us building here,” he added.

However, industry groups and analysts swiftly pushed back against Dangote’s request, warning that banning fuel imports would create a monopoly and limit market competition.

National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, rejected the proposal.

“We do not support that call. If imports are banned, it will lead to monopoly and worsen inflation. The Dangote refinery alone cannot meet national demand,” he said.

He also disagreed with Dangote’s claim that importation harms the industry. “Importation won’t kill local refineries; it will drive them to improve. Competition is healthy,” he added.

The President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, echoed similar concerns.

“We run a free economy. No single company should control the entire sector. While some goods should be banned, fuel importation should not be one of them,” he stated. “Multiple energy sources are crucial for a stable economy.”

Energy law expert at the University of Lagos, Professor Dayo Ayoade, warned that a blanket ban could pose legal and security risks.

“We cannot ban fuel imports outright. That would create a private monopoly and undermine energy security,” he said. “Nigeria needs diverse supply sources, and the market must be mature before such restrictions are considered.”

He also cautioned that outright bans could violate international trade agreements. “We have to be careful and smart. Bans don’t sit well with international trade norms,” he noted.

Despite the pushback on import restrictions, Dangote’s call for action against dormant refinery licences received support from IPMAN.

“You can’t obtain a refinery licence and use it as decoration. We need more refineries operating to boost exports,” Ukadike said.

Dangote’s refinery is projected to increase its refining capacity from the current 650,000 barrels per day (BPD) to 700,000 BPD by December. He also announced plans to begin a direct-to-station fuel delivery scheme on August 1, using 4,000 CNG-powered trucks to deliver petrol, diesel, and aviation fuel across Nigeria.

Last Friday, Dangote announced his retirement as Chairman of Dangote Cement to concentrate on his refinery, petrochemicals, fertiliser ventures, and government relations. His exit from the cement giant is seen as a strategic move to strengthen his position in Nigeria’s energy landscape.

As the fuel import debate intensifies, the Federal Government faces growing pressure to strike a balance between protecting local industry and maintaining a competitive, consumer-friendly market.