The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns that recent allegations by industrialist Aliko Dangote against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) could discourage foreign investors from engaging in Nigeria’s petroleum sector.
The warning comes after Dangote, President of the Dangote Group, publicly accused Farouk Ahmed, the CEO of NMDPRA, of economic sabotage and corruption. In a newspaper advertisement on Monday, Dangote alleged that Ahmed had spent $5 million on the secondary education of his four children in Switzerland, naming Faisal Farouk, Farouk Jr., Ashraf Farouk, and Farhana Farouk.
According to PETROAN, such public allegations, if left unresolved, may erode confidence in Nigeria’s regulatory institutions and negatively affect the country’s ability to attract foreign investment.
In a statement released on Tuesday, Billy Gillis-Harry, the National President of PETROAN, urged President Bola Tinubu to intervene promptly to resolve the dispute. He emphasized that dialogue, not confrontation, is essential to maintain stability in the downstream petroleum sector.
Gillis-Harry highlighted the importance of upholding the provisions of the Petroleum Industry Act (PIA), ensuring fair competition, and restoring confidence in Nigeria’s regulatory environment. He noted that ongoing public attacks on NMDPRA leadership could send negative signals to international investors looking for a stable and predictable business environment.
“The allegations and verbal attacks directed at the leadership of the NMDPRA by Aliko Dangote are capable of discouraging potential foreign investors and eroding confidence in Nigeria’s regulatory institutions,” Gillis-Harry said.
At an emergency ordinary national general meeting held on Monday, PETROAN reportedly passed a vote of confidence on the leadership of NMDPRA under Farouk Ahmed. The association credited the regulatory authority with introducing reforms, strategic governance, and regulatory clarity in the Nigerian downstream petroleum sector.
“Of serious concern are the negative public statements made against Nigeria’s national refineries, suggesting that they are unattractive for investment. PETROAN maintains that sound business ethics discourage running down another entity’s business, irrespective of competition,” the association’s statement read.
PETROAN also emphasized that Nigeria’s four national refineries remain viable for acquisition and that the downstream petroleum sector continues to offer opportunities for both local and foreign investors.
The association noted that unresolved issues involving the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) at Dangote’s refinery continue to worsen tensions in the downstream sector. PETROAN warned that failure to resolve these disputes could lead to supply chain disruptions, artificial fuel shortages, job losses, declining investor confidence, regulatory uncertainty, and unfair price manipulation.
PETROAN urged all stakeholders to engage in constructive negotiation and fair commercial practices to attract importers and investors to local refineries. The association condemned “compelling or brutal price-ambushing strategies” that undermine market confidence and distort competition.
Gillis-Harry expressed concern over aggressive price wars in the downstream petroleum sector, describing them as causing collateral damage to all parties involved. He explained that many of these price reductions appear to be designed to frustrate importers and are often executed below cost.
“Consequently, all parties in the price war may be operating at a loss in a bid to gain market dominance, a development PETROAN considers unsustainable and harmful to the long-term stability of the downstream sector,” the statement said.
PETROAN also called on the Nigerian National Petroleum Company Limited (NNPC Ltd) to speed up efforts to involve credible private-sector partners in the rehabilitation, management, or co-ownership of national refineries. The association believes that active private sector participation is essential for improving efficiency, attracting investment, and boosting Nigeria’s refining capacity.
“The downstream petroleum sector is business-friendly and remains attractive to both local and foreign investors,” PETROAN stated, noting that clear and fair regulatory processes are critical to sustaining investor confidence.
The dispute between Dangote and NMDPRA comes amid ongoing tensions in Nigeria’s downstream petroleum industry. Dangote has repeatedly accused the regulatory authority of undermining domestic refining by issuing multiple import licenses for petroleum products, which he claims hampers local production.
Farouk Ahmed, the NMDPRA CEO, has not officially responded to Dangote’s allegations but previously disowned a statement that purportedly addressed the accusations. The situation has attracted national attention, as stakeholders worry about its potential impact on Nigeria’s investment climate and the stability of the petroleum sector.
PETROAN’s intervention reflects wider concerns in the industry about maintaining fair competition, ensuring regulatory transparency, and protecting the interests of local and foreign investors.
