Alhaji Aliko Dangote, president of the Dangote Group, has ignited a significant debate within Nigeria's petroleum sector with his recent call for the inclusion of refined petroleum products in the federal government's 'Nigeria First' policy. This policy, aimed at boosting local production, currently bars government agencies from importing goods or services available domestically. Dangote's proposal, however, has been met with strong opposition from oil marketers and industry analysts, setting the stage for a crucial discussion on Nigeria's energy independence and economic strategy.
The 'Nigeria First' Policy and Dangote's Stance
The 'Nigeria First' policy, instituted by President Bola Tinubu, is designed to curb foreign procurement where local alternatives exist. It mandates that any import of goods or services already available in Nigeria requires explicit justification and a waiver from the Bureau of Public Procurement.
Speaking at the Global Commodity Insights Conference on West African Refined Fuel Markets, Dangote unequivocally advocated for extending this policy to include petrol, diesel, and other refined petroleum products. His primary argument centers on the detrimental impact of fuel importation on local refining capacity and investment. He asserted that continuous importation stifles domestic producers, leading to "unfair competition" and even the "dumping of cheap, often toxic petroleum products" that would not meet standards in other regions like Europe or North America.
Dangote further claimed that some imported fuels are subsidized Russian products, which artificially depress prices in Nigeria, forcing local refiners to sell below cost. He highlighted that while petrol and diesel are sold for around $1 (net of taxes) in many African countries, the price in Nigeria is significantly lower at approximately 60 cents due to this alleged dumping. He urged African governments to emulate nations like the United States, Canada, and the European Union in safeguarding their domestic industries.
Dispelling Monopoly Concerns: A Focus on Local Investment
Addressing concerns about creating a monopoly, Dangote emphasized that his aim is to foster local investment, not to dominate the market. He criticized individuals who invest their wealth abroad while critiquing local initiatives, stressing the importance of channeling resources into national growth.
To underscore the capability of his $20 billion refinery to meet Nigeria's domestic fuel demands, Dangote revealed a significant milestone: Nigeria has become a net exporter of petroleum products. He stated that between June and July 2025, the Dangote refinery exported approximately 1.35 billion liters of petrol to other countries. This substantial export volume, he argued, proves the refinery's capacity to not only satisfy local needs but also contribute to the global market. He also projected that the refinery would increase its capacity from the current 650,000 barrels per day to 700,000 barrels per day by December.
Marketers and Experts Voice Strong Opposition
Despite Dangote's compelling arguments, oil marketers and energy experts have largely rejected his call for a ban on fuel importation.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed strong disagreement, warning that such a ban would lead to inflation and a dangerous monopoly, especially since the Dangote refinery is currently the sole operational refinery in the country. He maintained that continued importation is crucial for market checks and balances, and that it would strengthen local refineries by encouraging competition, rather than killing them.
Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), echoed this sentiment, emphasizing the importance of a free market economy and multiple energy sources for Nigeria. While acknowledging the need to ban imports of some locally available goods, he firmly stated that refined petroleum products should not be on that list. He argued that importation helps stabilize product sources and ensures replenishment.
Similarly, Professor Dayo Ayoade, an energy expert at the University of Lagos, cautioned against a ban, citing the risk of promoting monopolistic tendencies. He stressed that relying solely on the Dangote refinery for energy security would be "completely unacceptable" and advised the government to encourage more refineries to come online. He also raised concerns about international trade laws, suggesting that outright bans can be problematic and that market forces should ideally make imports less attractive than local products.
The Path Forward: Encouraging More Local Refineries
Amidst the debate, there is a consensus on one point: the need for more local refining capacity. Dangote himself called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to revoke dormant refinery licenses from those who are not utilizing them, a sentiment supported by IPMAN's spokesman, Chinedu Ukadike.
This ongoing discussion highlights the complex challenge of balancing nationalistic economic policies with market dynamics and energy security. As Nigeria navigates its path towards greater energy independence, the interplay between government policy, private sector investment, and market forces will undoubtedly shape the future of its petroleum industry.