According to industry sources, the escalating feud between Aliko Dangote, President of Dangote Refinery, and Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has coincided with a significant drop in fuel prices across Nigeria. The dispute has involved allegations from Dangote, who accused Ahmed of undermining local refining by promoting fuel imports despite the refinery’s production capacity.....KINDLY READ THE FULL STORY HERE▶

Dangote also reiterated claims that Ahmed paid over $5 million (approximately N7 billion) in school fees for his children in Switzerland, a claim previously dismissed as false by both NMDPRA and civil society organizations. Lawyers in Defence of Good Governance, the coalition that initially made the allegation, have since retracted the claim, confirming that Ahmed’s children were on scholarships and completed their studies prior to his appointment.

The accusations, however, have stirred concern among stakeholders in the downstream sector. Dangote recently reduced his refinery’s gantry fuel price from N828 to N699 per liter, prompting other marketers to adjust their prices. Reports from Abuja indicate that Bovas filling station cut its retail price to N865 per liter, Empire Energy and Ranoil to N912 and N910 per liter respectively, while NIPCO and AA Rano offered fuel at N915, N905, and N910 per liter. Private depots such as Menj, Bovas, AA Rano, and Integrated reduced pump prices to N710 per liter, down from around N824.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has assured the public that the nationwide fuel price reduction will be implemented in full from Tuesday, emphasizing the need for collaboration between Dangote Refinery and NMDPRA to ensure steady supply and affordability.

Despite the reduction, transportation costs in major cities remain largely unchanged. The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, described the feud as a market rivalry with no real benefit to Nigerians, warning against unsustainable pricing strategies that could destabilize the petroleum market. He stressed that artificially low fuel prices may offer short-term relief but pose long-term risks for the economy.

The House of Representatives Committee on Petroleum Resources has called for an end to hostilities between Dangote and NMDPRA. November industrial data indicated that of Nigeria’s daily consumption of 52.9 million liters of petrol, only 19.5 million liters came from Dangote Refinery, highlighting the country’s continued reliance on imports. Dangote has expressed disagreement with the regulator’s data, reflecting ongoing tension in the sector.