Dangote Urges Fuel Import Ban as Oil Marketers Push Back

Aliko Dangote, President of the Dangote Group, has appealed to President Bola Tinubu to apply the ‘Nigeria First’ initiative to the refined fuel sector, a suggestion that met immediate opposition from oil marketers and industry professionals on Sunday.

While speaking at the Global Commodity Insights Conference on West African Refined Fuel Markets in Abuja, Dangote argued for a complete ban on the importation of refined petroleum products—including petrol and diesel—claiming that the ongoing influx of imported fuels is sabotaging local refineries and discouraging investment in Nigeria’s oil refining capacity.

The Nigeria First policy, implemented in May 2024, restricts all government bodies from importing services or products that are already produced domestically. The directive requires justification and approval from the Bureau of Public Procurement before any foreign procurement can be considered.

Referencing this regulation, Dangote maintained that the same protection should extend to local oil refiners, including his $20 billion Dangote Refinery, to limit the inflow of cheaper, often inferior, imported fuels.

He further accused fuel importers of flooding Nigeria with substandard, toxic petroleum products, many of which are outlawed in Europe, giving them an unethical advantage and compromising public safety and fuel quality.

“To make matters worse,” Dangote remarked, “we are now facing an increased volume of cheap, often harmful petroleum products, many of which are blended to unsafe levels that wouldn’t pass approval in Europe or North America.”

Dangote also revealed that some imported fuels—particularly from Russia—are sold at subsidized rates. This undercuts local prices and pressures domestic producers into unsustainable pricing.

“With Russian fuel price caps in place, discounted products from or made with Russian crude are now being dumped in African markets, undermining our local refining operations that pay full price for crude oil. This has caused pricing instability across Africa,” he stated.

He noted that Nigeria is now selling fuel at about 60 cents per litre, lower than even Saudi Arabia, despite producing and refining oil locally—an indication of the damage caused by rampant dumping.

To protect local investments and refine the market structure, Dangote called on African governments to adopt protective economic measures like those used in Canada, the United States, and the European Union to prevent unfair foreign competition.

He dismissed accusations that his suggestion was an attempt to monopolize the sector, pointing instead to a lack of domestic commitment by wealthy Nigerians who, according to him, invest abroad but criticize local investors.

“Too many Nigerians with the financial means choose to sit on the sidelines and invest their wealth overseas, while we put everything on the line to build at home,” Dangote said.

He also emphasized that his refinery has the capacity to meet Nigeria’s fuel demands. Backing this claim, he disclosed that Nigeria has already become a net exporter of refined petroleum products, having shipped out approximately 1.35 billion litres of petrol within a 50-day period.

“Before coming up here, I checked with my team—we’ve exported around 1 million tonnes of Premium Motor Spirit (PMS) between June and July 2025, which is about 1.35 billion litres,” he stated.

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Oil Marketers Reject Dangote’s Proposal

Despite Dangote’s assertions, key stakeholders in the downstream oil sector strongly opposed the proposed import ban. Speaking to The Punch on Sunday, Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated that independent marketers would reject any move to outlaw fuel importation.

“We, the independent marketers, disagree with that idea. If the government enforces such a ban, it would stoke inflation and create a monopoly since only one refinery currently functions nationwide,” Ukadike warned.

He added that Nigeria should maintain both importation and local production options to preserve market balance and consumer affordability.

Ukadike also pushed back on Dangote’s argument that importation undermines local businesses.

“It’s not true. Importation will enhance local capacity, not destroy it. It challenges refineries to improve. We don’t agree with Dangote’s position.”

In the same vein, Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), rejected the call for an import ban, warning against giving any single company a dominant hold over the oil sector.

He acknowledged that while banning some foreign goods makes sense, fuel should not be part of that list, especially in a country that depends on diverse energy sources.

“We operate a free market economy. No single company should monopolize an entire industry,” Gillis-Harry emphasized.

He added:

“Importation is not what’s harming the economy. In fact, it stabilizes petroleum supply chains. While products that we can produce locally—like garri, toothpicks, or cassava—should be banned, refined petroleum products should remain open to importation. It ensures supply diversity and energy security.”