Nigeria’s richest man Dangote escalates oil fight with regulator, seeks corruption probe

LAGOS – Aliko Dangote, Nigeria’s wealthiest individual, escalated his conflict with regulatory authorities on Sunday, accusing them of enabling the importation of cheap fuel that undermines the viability of local refineries.

As Africa's largest oil producer, Nigeria has long struggled with a heavy reliance on imported fuel, despite its abundant oil reserves. Dangote's refinery, designed to revolutionize the country's energy sector, was intended to address this issue. However, he claims that unchecked imports are threatening not only local refineries but also jeopardizing jobs, investments, and energy security.

In a statement at his 650,000-barrel-per-day refinery in Lagos, Dangote argued that the importation of fuel is hindering the development of Nigeria’s domestic refining capacity. “You don’t use imports to checkmate domestic potential,” he told reporters, stressing that this practice is resulting in job creation abroad while Nigeria struggles to industrialize.

Dangote has also called for an official inquiry into Farouk Ahmed, the head of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). He raised concerns about Ahmed’s management of the sector and the allegations that his personal expenditures have exceeded what is reasonable for his position. Ahmed has not yet responded to requests for comment but has previously accused Dangote’s refinery of attempting to monopolize the sale of petroleum products, despite the refinery's output not being sufficient to meet local demand.

Last month, the regulatory body urged the Nigerian president to abandon plans to ban the importation of refined petroleum products, citing concerns that local production could not meet the country's daily demand of 55 million liters. Dangote, however, disagrees with this assessment, alleging that the regulator is distorting the actual production capacity of his refinery by reporting offtake statistics rather than true production data.

Dangote's refinery, which was designed to reduce Nigeria’s dependence on imported fuel and save billions in foreign currency, has also faced challenges securing the necessary crude oil supplies. According to Dangote, the regulator has failed to implement a rule that ensures local refiners receive crude before it is exported. As a result, Dangote's refinery is currently importing 100 million barrels of crude oil annually, a figure expected to double following its planned expansion.

Despite these challenges, Dangote remains committed to expanding his refinery and safeguarding his investment, which he has described as "too big to fail." He also reiterated plans to list the company on Nigeria’s stock exchange, allowing Nigerians to buy shares and receive dividends in U.S. dollars, giving every citizen the opportunity to own a piece of the nation's economy.

Nigeria’s dependence on fuel imports continues to be a major issue, exacerbated by aging and inactive state-owned refineries. As the country seeks to address its energy challenges, Dangote’s refinery stands as a critical piece of the puzzle, with the potential to reshape Nigeria's energy landscape if it can overcome the current obstacles. -Reporting by Isaac Anyaogu; Editing by Michael Perry/Reuters