Fuel Import Ban Controversy: Dangote Urges Tinubu to Enforce ‘Nigeria First’ Policy, Marketers Warn Against Monopoly
Written by Editor for springnewsng JUly 28,2025
A major showdown is brewing in Nigeria’s petroleum sector as Africa’s richest man, Aliko Dangote, has urged President Bola Tinubu to extend the Federal Government’s ‘Nigeria First’ policy to include refined petroleum products. This move, if implemented, would effectively ban the importation of petrol, diesel, and other locally refined fuels.
Dangote made the appeal during the Global Commodity Insights Conference on West African Refined Fuel Markets, co-hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Insights.
He argued that the continued importation of refined petroleum products is stifling domestic refining and discouraging investment in the Nigerian oil and gas sector.
“The ‘Nigeria First’ policy should apply to the petroleum products sector and all other sectors. Continued importation is killing local refining and discouraging new investments,” Dangote stated.
He cited dumping of cheap and often toxic imported fuel—some allegedly subsidised in Russia—as a major reason Nigeria must protect local refiners. According to him, these imported products are sold at rates far below global pricing, making it difficult for domestic producers like the Dangote Refinery to compete.
“In Nigeria, petrol is sold at just 60 cents per litre, which is even cheaper than in Saudi Arabia. This is the result of unfair dumping practices,” Dangote warned.
The billionaire industrialist stressed that his call for import restrictions is not about establishing a monopoly but about protecting Nigeria’s economic interests and encouraging local investment.
However, industry stakeholders have rejected Dangote’s proposal, warning it could lead to market domination and price manipulation.
Oil Marketers Push Back
Reacting to Dangote’s position, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said the suggestion is unacceptable and could trigger a fuel monopoly in Nigeria.
“We independent marketers reject that proposal. If the government bans fuel importation, it will lead to inflation and monopolistic practices. Since we are not paying subsidies, the market should remain open to competition,” Ukadike said.
He also disagreed with Dangote’s claim that importation is hurting domestic refiners. “Rather than harm, importation strengthens the sector and pushes local refineries to improve,” he added.
Similarly, Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), said Nigeria needs multiple fuel sources and should not rely on a single refinery.
“No one company should dominate the downstream oil sector. We support banning imports of goods like toothpicks or garri, but not petroleum products. A free market must be maintained to ensure stable supply,” Gillis-Harry insisted.
Expert Cautions Against Monopoly
Energy law professor at the University of Lagos, Prof. Dayo Ayoade, echoed the marketers’ concerns, describing any move to ban fuel importation as dangerous and monopolistic.
“A legal ban on petroleum imports would not be acceptable. It risks giving a private company too much power in a strategic sector. From a national security and energy security perspective, that’s a serious concern,” Ayoade warned.
He also pointed out that international trade laws could conflict with such a ban, and advised the government to liberalize the market and encourage multiple refineries before restricting imports.
Dangote: Nigeria Now a Net Fuel Exporter
Despite the criticism, Dangote maintained that his $20 billion refinery has the capacity to meet Nigeria’s domestic fuel demands. He revealed that between June and July 2025, the refinery exported approximately 1.35 billion litres of petrol to global markets.
“Today, Nigeria has become a net exporter of refined products. We exported 1 million tonnes of petrol in just 50 days,” he said.
He also urged the NMDPRA to revoke licenses from companies that have failed to build refineries after receiving regulatory approvals. On this point, IPMAN agreed with Dangote, stating that inactive licenses are holding back sector growth.
The Dangote Refinery, currently producing at 650,000 barrels per day, is expected to hit 700,000 BPD by December 2025. In a strategic move to focus on the refinery and other industrial projects, Aliko Dangote recently stepped down as Chairman of Dangote Cement.
As the debate over fuel importation intensifies, all eyes are now on President Tinubu to decide whether to support local production through restrictive policies or maintain open market competition.
