LAGOS, Nigeria — Africa’s richest man, Aliko Dangote, has called on President Bola Tinubu to extend the Federal Government’s ‘Nigeria First’ policy to refined petroleum products, urging a ban on the importation of petrol, diesel, and other fuels produced locally. The appeal, made during a high-profile industry conference, has sparked strong opposition from oil marketers and experts who warn of the risks of monopolistic control and market distortion.
The ‘Nigeria First’ policy, launched in May 2025, mandates that all government procurement prioritize goods and services produced within Nigeria unless granted a waiver by the Bureau of Public Procurement. Dangote, President of Dangote Group, now wants refined fuels added to the list of restricted imports, arguing that the continued influx of foreign fuels undermines Nigeria’s nascent refining capacity and deters investment.
Speaking at 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, Dangote said, “The Nigeria First policy announced by His Excellency, President Bola Tinubu, should apply to the petroleum product sector and all other sectors.”
He warned that the importation of cheap and often substandard fuel, some of it allegedly subsidised or sourced from Russia, is undercutting local production and forcing refiners to sell below cost. “We are now facing increased dumping of cheap, often toxic petroleum products… some of which are blended to substandard levels that would never be allowed in Europe or North America,” Dangote alleged.
According to him, this “unfair competition” has created a pricing distortion, with petrol being sold in Nigeria at just 60 cents per litre, compared to about $1 elsewhere.
Dangote dismissed concerns about monopolisation, stating that his call is not about cornering the market but protecting domestic investment. “Too many people who have the means… choose instead to criticise from the sidelines while investing their wealth abroad,” he said.
To support his position, Dangote disclosed that Nigeria has already become a net exporter of refined fuels. His $20 billion refinery, he said, exported approximately 1.35 billion litres of petrol between June and July 2025 alone. The plant currently operates at 650,000 barrels per day and is expected to ramp up to 700,000 BPD by December.
Marketers, Experts Push Back
However, key stakeholders in Nigeria’s downstream sector have rejected the proposal, warning that a ban on fuel imports could trigger inflation, stifle competition, and entrench monopoly.
“We independent marketers will depart from that request,” said Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN). “If the government does that, that means we will not be able to check inflation and monopoly, since it is the only refinery operating in the country now.”
Ukadike added that importation serves as a necessary buffer until multiple local refineries come online. “Importation won’t kill local businesses or refineries; it will strengthen them,” he argued.
Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), also rejected the proposal, saying that importation ensures multiple sources of energy in a free-market economy.
“We are running a free economy. There’s no reason why any one company should have an overarching value on the entire industry,” he said. “Importation is stabilising the sources of petroleum products.”
Academic voices also weighed in. Professor Dayo Ayoade, an energy law expert at the University of Lagos, warned that a blanket import ban could violate trade laws and compromise energy security.
“We can’t rely solely on the Dangote refinery,” Ayoade said. “For reasons of energy and national security, a monopoly is completely unacceptable.”
He also raised legal concerns: “International trade law does not really sit well with banning things. We have to be clever about how we do it.”
Call for More Refineries
Despite the disagreement on fuel imports, there was consensus on the need for more local refineries. Both Dangote and IPMAN’s Ukadike urged the government to revoke dormant refinery licences and incentivise active production.
“You can’t obtain a licence to build a refinery and use it to decorate your house,” Ukadike said.
As Dangote ramps up operations, he announced plans to deploy 4,000 compressed natural gas-powered trucks beginning August 1 to facilitate free fuel delivery to filling stations and bulk consumers such as telecom firms.
Meanwhile, Dangote stepped down last Friday as Chairman of Dangote Cement’s board, a move his company says will allow him to concentrate fully on refining, petrochemicals, fertilisers, and government relations.
As Nigeria navigates the complex balance between protecting local industry and maintaining market openness, the coming months will test the government’s resolve to support indigenous production without stifling competition.
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