A recent feud between Aliko Dangote, President of Dangote Refinery, and Farouk Ahmed, Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, has led to a significant drop in retail fuel prices across Nigeria. The dispute began when Dangote accused Ahmed of being an economic saboteur for encouraging fuel imports despite the capacity of his refinery. Dangote also claimed that Ahmed had paid over $5 million for his children’s tuition in Switzerland, an allegation that was later retracted by the coalition of civil society organizations that initially made the claim.
The allegations sparked panic among stakeholders in the downstream sector, with Dangote vowing to fight to reduce fuel prices. As a result, fuel prices have begun to drop, with some filling stations in Abuja reducing their prices to as low as N865 per liter. Private depot owners have also reduced their pump prices to N710 per liter, down from around N824 per liter.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has confirmed that the price drop will be implemented across filling stations from Tuesday, with spokesperson Chinedu Ukadike urging Dangote and Ahmed to collaborate for the benefit of Nigerians. However, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, has cautioned against unsustainable pricing strategies, warning that artificially low petrol prices could destabilize the market and harm the economy in the long run.
Gillis-Harry described the feud between Dangote and Ahmed as “phantom talks” driven by industry rivalry and a struggle for dominance, and stressed that accurate pricing is essential to avoid serious challenges later on. The House of Representatives Committee on Petroleum Resources (Downstream) has also called on Dangote and NMDPRA to cease hostility.
The dispute has highlighted the ongoing dominance of fuel imports in Nigeria, with the Nigerian government halting the implementation of a 15% import duty tax on refined petrol products. Dangote has expressed displeasure over the regulator’s data, which showed that out of the 52.9 million liters per day of petrol consumed by Nigerians, only 19.5 million liters per day were supplied by Dangote Refinery. The feud between Dangote and Ahmed is likely to continue, with significant implications for the Nigerian economy and fuel prices.
