A photo file of President /Chief Executive of Dangote Group – Aliko Dangote

A major policy clash is brewing in Nigeria’s oil sector as Africa’s richest man, Aliko Dangote, has urged President Bola Tinubu to extend the Nigeria First import ban policy to refined petroleum products—drawing strong opposition from oil marketers and energy analysts.

Speaking at the Global Commodity Insights Conference on West African Refined Fuel Markets—hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Insights—Dangote called for petrol, diesel, and other locally refined products to be included in the list of items banned for import under Tinubu’s May 2025 directive.

“The Nigeria First policy announced by His Excellency, President Bola Tinubu, should apply to the petroleum product sector and all other sectors,” Dangote stated. “We are now facing increased dumping of cheap, often toxic petroleum products… blended to substandard levels that would never be allowed in Europe or North America.”

He warned that importation threatens the viability of his $20 billion refinery and discourages further investment in domestic refining. “Discounted petroleum products produced in Russia or with discounted Russian crude find their way to Africa… severely undercutting our local production, which is based on full crude pricing,” he added.

Between June and July 2025, Dangote disclosed, the refinery exported over 1.35 billion litres of petrol to foreign markets, making Nigeria a net exporter of refined petroleum products. “From June beginning to date, we have exported about 1 million tonnes of PMS, within the last 50 days,” he said.

However, independent marketers and energy experts have flatly rejected Dangote’s proposal.

National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said the idea would breed monopoly. “We independent marketers will depart from that request. 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,” he said.

He added, “Importation won’t kill local businesses or refineries; it will strengthen them. It will ensure local refineries step up their game. I don’t agree with Dangote on this.”

Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), also disagreed. “We are running a free economy. There’s no reason why any one company should have an overarching value on the entire industry… Importation of refined petroleum products should not be banned because it helps to ensure that there are multiple sources of energy and replenishment.”

Professor Dayo Ayoade, an energy law expert at the University of Lagos, warned against granting monopoly powers to a single private refinery. “We cannot have a ban on petroleum imports… That would give a monopoly to a private individual,” he said, stressing the importance of energy security and diversified supply.

He added, “International trade law does not really sit well with banning things. So, we have to be clever about how we do it.”

Still, Dangote defended his position as not monopolistic. “Too many people who have the means and the opportunity to contribute meaningfully to our nation’s growth choose instead to criticise from the sidelines while investing their wealth abroad,” he said.

Despite opposition, stakeholders agreed with Dangote on one point: the need to revoke dormant refinery licences. “You can’t obtain a licence to build a refinery and use it to decorate your house,” Ukadike concurred.

Dangote, who announced his retirement last week as Chairman of Dangote Cement’s Board, said he is shifting focus to his refinery, petrochemical, and fertiliser investments. The refinery, which currently processes 650,000 barrels per day, is expected to hit 700,000 barrels daily by December.

The group is also preparing to launch a free fuel delivery scheme on August 1 using 4,000 compressed natural gas-powered trucks to deliver petrol, diesel, and aviation fuel directly to filling stations and major consumers.