Dangote Petroleum Import Ban Proposal
Aliko Dangote and the Dangote Petroleum Refinery have proposed including refined petroleum under Nigeria’s “Nigeria First” policy, aiming to ban imports of fuels like petrol and diesel when local supply exists. This move has sparked intense debate in 2025 with implications for national energy policy, pricing, and market competition.
1. What Is the Proposal All About?
Aliko Dangote called for a policy extension mandating that only refineries licensed in Nigeria be allowed to import refined petroleum products, even during fuel scarcity or refinery maintenance. The proposal stems from a clause within the Petroleum Industry Bill (PIB) that would restrict import licenses to companies holding valid refining licenses—like the Dangote Refinery itself. The intent is to protect domestic investment and discourage dumping of cheap, low-quality imported fuel.
2. Why Dangote Wants an Import Ban
Dangote argues that fuel imports, including cheap or subsidized Russian products, undercut local refiners, creating unfair competition and negatively impacting investment in Nigeria’s refining sector.
He highlighted that between June and July 2025, the Dangote Refinery exported around 1.35 billion litres of petrol, demonstrating its ability to meet local demand.
The refinery aims to ramp up capacity from 650,000 barrels per day toward 700,000 bpd by year-end.
3. Who Opposes It – and Why?
Major oil marketers and energy experts strongly criticized the proposal, warning of negative consequences:
IPMAN (Independent Petroleum Marketers Association of Nigeria) said banning imports could lead to fuel shortages, inflation, and a monopolistic fuel market, especially since Dangote is the only fully operating refinery currently.
PETROAN and Prof. Dayo Ayoade of the University of Lagos argued that dependency on a single domestic refiner is risky and legally complex under international trade laws.
4. Legal Developments & Court Engagement
In July 2025, Dangote Petroleum Refinery filed a legal suit against NMDPRA and NNPCL, challenging import licenses issued to other companies, and seeking ₦100 billion in damages. The suit is set for hearing in September 2025.
In March 2025, a Nigerian judge dismissed NNPCL’s attempt to halt Dangote’s suit, allowing the case to proceed. Dangote asserts imports are undermining the refinery's viability.
5. What Happens If the Ban Is Implemented?
Potential Outcome Impact
Reduced fuel imports Reduced foreign exchange outflow
Support for domestic fuel Boost to local refineries and investor confidence
Short-term price rise Risk of inflation and supply disruptions
Centralizing fuel supply Greater role for Dangote Refinery, potential market dominance
Evidence suggests that without careful regulation, a fuel import ban could temporarily spike pump prices to ₦1,500/litre or above, due to limited distribution capacity.
6. What You Should Know
Nigeria’s goal to eliminate fuel imports is tied to Dangote’s 650,000 bpd refinery and state-led efforts to revive old refineries. Regulatory pressure is mounting: NMDPRA may block oil exporters who don’t deliver allocated crude to refineries.
Despite producing large export volumes and reducing import spending, local fuel importers still dominate—spending as much as ₦3 trillion within 42 days of early October 2024.
Dangote’s call to ban fuel imports—rooted in the “Nigeria First” policy—seeks to protect domestic refining capacity and curb questionable fuel import practices. But marketers caution this could backfire, potentially raising prices and concentrating market power. The debate is now playing out not only in regulatory reforms but also in the courts.
For policymakers and stakeholders, the pressing questions are: Can domestic refining really meet Nigeria’s needs? And will this move create long-term self-sufficiency or simply grant monopoly power? Let me know if you’d like to explore how this compares with global fuel policies or what it means for energy stability in Nigeria.
