Connect with us

Business

Fuel war brews as Dangote presses Tinubu to ban imports

Published

on

•IPMAN, PETROAN push back, warn against monopoly, Dangote insists on ‘Nigeria First’ policy

The President of the Dangote Group, Alhaji Aliko Dangote, has asked President Bola Tinubu to include refined petroleum products in the list of items banned under the ‘Nigeria First’ policy of the Federal Government. But this was unanimously rejected by oil marketers and some industry analysts on Sunday.

The ’Nigeria First’ policy seeks to ban government agencies from importing goods that can be produced within Nigeria. In May, Tinubu barred government agencies from importing goods or services that are available locally.

The policy stated that no procurement of foreign goods or services already available in Nigeria shall proceed without justification and a Bureau of Public Procurement waiver.

Speaking at the just concluded Global Commodity Insights Conference on West African Refined Fuel Markets hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in partnership with S&P Global Insights, Dangote requested in clear terms that petrol, diesel, and other refined petroleum products be added to the items banned by the policy.

According to him, the importation of fuel into Nigeria is killing local refining and discouraging further investments in the sector and even the economy. To remain viable, he urged governments across Africa to take deliberate steps as the United States, Canada, and the European Union have done to protect domestic producers from what he called unfair competition.

Dangote did not mince words when he said that the Nigeria First policy announced by Tinubu should apply to the petroleum products sector. “The Nigeria First policy announced by His Excellency, President Bola Tinubu, should apply to the petroleum product sector and all other sectors,” he stated.

This request by Dangote seeks to place a ban on the importation of petrol, diesel, and other products being produced locally. He argued that local refiners were finding it difficult to sell their products because of what he called dumping. The billionaire businessman alleged that importers were dumping toxic fuel that would never be allowed in Europe.

“And to make matters worse, we are now facing increased dumping of cheap, often toxic petroleum products, some of which are blended to substandard levels that would never be allowed in Europe or North America,” he said.

Dangote mentioned that some of the importers bring into Nigeria fuel or crude oil subsidised in Russia. This, he said, affects local pricing, forcing refiners to drop prices below their costs.

“Due to the price caps on the Russian petroleum products, discounted petroleum products produced in Russia or with discounted Russian crude find their way to Africa, severely undercutting our local production, which is based on full crude pricing. This has created an unlevel playing field in most African countries. Petrol and diesel are sold for about a dollar net of taxes.

“In Nigeria, due to this unfair competition, this price is just about 60 cents, even cheaper than Saudi Arabia, which produces and refines its own oil. This is due to the fact that we are having too much dumping. To remain viable, we urge the governments across Africa to take deliberate steps as the United States, Canada, and the European Union have done to protect domestic producers from unfair competition,” he stated.

The richest man in Africa said this was not to monopolise the sector but to produce local investments. He noted that those who have the resources to invest in Nigeria keep taking their resources outside the country while they criticise local investors.

“Let me take this opportunity to address concerns around monopoly and dominance. The reality is that too many people who have the means and the opportunity to contribute meaningfully to our nation’s growth choose instead to criticise from the sidelines while investing their wealth abroad,” Dangote said.

To prove that his $20bn refinery can satisfy local fuel needs, Dangote disclosed that Nigeria has become a net exporter of petroleum products, having exported approximately 1.35 billion litres of petrol to other countries worldwide in 50 days.

According to Dangote, between June and July 2025, the refinery exported up to 1 million tonnes of petrol, which is approximately 1.35 billion litres when converted.

“Today, Nigeria has actually become a net exporter of refined products. Before I came on the podium, I asked my people how many tonnes of PMS we have actually exported. From June beginning to date, we have exported about 1 million tonnes of PMS, within the last 50 days,” he said.

Marketers tackle Dangote

However, marketers disagreed with Dangote, urging the Federal Government not to consider adding petroleum products to the list of items banned from importation.

Speaking with our correspondent on Sunday, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said independent marketers would not support that idea as it would spell doom for the sector.

“We independent marketers will depart from that request. If the government does that, that means we will not be able to check inflation and monopoly, since it is the only refinery operating in the country now. We should continue to import even as we buy locally.

“I heard that the NMDPRA stated clearly that Dangote cannot produce all the fuel that the country needs. We will appreciate it if the country allows importation to continue since we are not paying subsidy,” Ukadike said.

Reacting to Dangote’s claim that importation would kill businesses and local refineries, Ukadike differed. “Importation won’t kill local businesses or refineries; it will strengthen them. It will ensure local refineries step up their game. I don’t agree with Dangote on this,” he said.

Also, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, kicked against the call to ban fuel Importation. He said no one company should be allowed to dominate the downstream sector in a free economy.

While admitting that there is a need to ban the importation of some goods, he said these should not include fuel, stressing that Nigeria needs multiple sources of energy. “I don’t agree with Dangote. We are running a free economy. There’s no reason why any one company should have an overarching value on the entire industry.

“Importation is not killing the economy. Importation is stabilising the sources of petroleum products. Importation of all products is useful. However, those that can be produced in Nigeria, like toothpicks, garri, egusi soup, cassava, and others like that, should be banned.

“But importation of refined petroleum products should not be banned because it helps to ensure that there are multiple sources of energy and replenishment,” Gillis-Harry stated.

Expert reacts

An energy expert at the University of Lagos, Professor Dayo Ayoade, also warned against banning fuel Importation, saying this would promote monopolistic tendencies.

“No, we cannot have a ban on petroleum imports. It’s not a legal ban. That would not be acceptable because we don’t have diverse sources for petroleum products. We can’t rely solely on the Dangote refineries. That would give a monopoly to a private individual.

“And for the reasons of energy security and national security, that would be completely unacceptable. The government should continue to encourage, liberalise, and ensure other refineries come upstream. NNPC may want to privatise or sell off its refineries, then that’s fine. But we need to have a better base of product market before we now start to say we want to ban imports,” he said.

He queried what the local and international laws say about banning products.

“And you know, when we talk about bans, we have to look at international trade. International trade law does not really sit well with banning things. So, we have to be clever about how we do it. But if the market is ripe, it will be more expensive to bring in things from other countries than our own products, provided they are of sufficient quantity and the quality is fine,” the don submitted.

More refineries

During the NMDPRA conference, Dangote called on the regulator to encourage building more refineries. He charged the agency to withdraw dormant refinery licences from those holding on to them.

The IPMAN spokesman supported Dangote on this, saying, “On that side, I agree with him. You can’t obtain a licence to build a refinery and use it to decorate your house. The nation needs more refineries to do more exports.”

Dangote has repeatedly stated that his refinery has more than enough fuel to satisfy local fuel needs, wondering why some marketers insist on “sabotaging” his investment with importation. He disclosed recently that the refinery would produce hit 700,000 barrels per day capacity in December, an update from the current 650,000 BPD capacity.

On Friday, Dangote announced his retirement as a Director and the Chairman of the Board of Directors of Dangote Cement. According to a statement Friday by the Group Chief Branding & Communications Officer, Anthony Chiejina, Dangote is relinquishing his position as chairman and retiring from the board to focus more attention on the $20bn refinery, petrochemicals, fertiliser, and government relations.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

EU, Germany, Nigeria unveil €18.3m project to boost agriculture, job

Published

on

The Federal Government of Nigeria, in partnership with the Government of Germany and the European Union, officially launched the €18.3m EU-VACE TARED Project on Wednesday.

The project is a four-year initiative aimed at transforming Nigeria’s agricultural sector through climate-smart practices, job creation, and inclusive value chain development.

The EU-VACE TARED (Agriculture Value Chain Facility – Transformative Agricultural Systems for Rural Economic Development) project targets four critical agricultural value chains: cocoa, dairy, tomatoes, and ginger.

The project will run from October 2024 to September 2028 and will be implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH, in partnership with Nigeria’s Federal Ministry of Budget and National Planning, and the Federal Ministry of Agriculture and Food Security.

Seven states — Cross River, Kano, Kaduna, Kebbi, Ondo, Oyo, and Plateau — will serve as implementation hubs for the project, which seeks to enhance food security, promote innovation, and provide economic opportunities for women and youth.

Speaking during the launch, the Minister of State for Agriculture and Food Security, Aliyu Abdullahi, stressed the project’s alignment with the national agenda.

“This project definitely aligns with the Renewed Hope Agenda of President Bola Tinubu, in which food security, poverty eradication, economic growth and job creation, inclusivity, and access to finance are all critical components of that agenda,” he said.

“The EU-VACE TARED project provides us with a unique opportunity to address some of these challenges head-on. It will enhance coordination, promote value addition, and build systems that protect our farmers and consumers,” Abdullahi said.

He also announced the formation of a project steering committee to ensure transparency and alignment with national priorities.

“This steering committee will not just exist on paper. It will be an engine of direction, innovation, and monitoring to guarantee that we can deliver measurable results,” he added.

Minister of Livestock Development, Idi Maiha, highlighted the project’s relevance to Nigeria’s livestock sector and broader agricultural goals.

Maiha stressed the importance of developing the dairy value chain, which he said aligns closely with the Ministry’s Livestock Growth Acceleration Strategy.

“Today, we spend $1.5 billion to import dairy and dairy products into the country. We do believe together we can change the narrative by ensuring that the sector is transformed in such a way that progressively we begin to reduce that level of import by creating local industries, employing people, improving quality of life, creating social harmony, and building peace across the land,” he said.

The Head of the European Union Delegation to Nigeria, Gautier Mignot, said the project is a key component of the EU’s Global Gateway strategy and Team Europe initiative, aimed at boosting sustainable development and economic resilience.

“Nigeria’s agricultural sector is rich with potential, and yet we know that it faces persistent challenges like weak access to funds, climate-related risk, and infrastructure deficit, among others.

“However, perhaps the most urgent challenge is generational, meaning how can we make agriculture attractive, viable, and promising for young Nigerians?” Mignot said.

“Our goal is clear. It is to foster inclusive, climate-smart, and commercially viable agriculture that creates decent jobs, especially for youth and women, while helping to build the next generation of what I would call agripreneurs,” he added.

He confirmed that the EU is investing over “€87m through various agriculture and climate-resilient programmes” in Nigeria, with a broader Team Europe pipeline of nearly €1.5bn in green economy initiatives.

In his remarks, Deputy Head of Mission at the German Embassy Johannes Lehne reaffirmed Germany and the EU’s commitment to Nigeria’s development, describing the project as a strategic investment in the country’s agricultural future.

“This initiative is a testament to our long-standing cooperation with Nigeria,” Lehne stated. “It’s about more than funding—it’s about supporting sustainable development and transforming agri-food systems to create jobs, promote climate-smart farming, and empower local communities.”

The Deputy Country Director of GIZ Nigeria and Economic Community of West African States, Oladoyin Olawaiye, also emphasised the broader social impact of the initiative.

“EU-VACE TARED is about more than agriculture – it is about creating jobs, building resilience, and giving young Nigerians more opportunities to thrive at home.

“Together with our Nigerian and European partners, we are committed to turning challenges into opportunities,” she said.

The EU-VACE TARED project is expected to support smallholder farmers and MSMEs with innovations and skills, improve access to finance and international markets, promote climate-smart practices, and create decent work opportunities for marginalised groups — reinforcing Nigeria’s agricultural sector as a driver of inclusive and sustainable growth.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading

Business

NUPENG suspends strike as Dangote accepts union’s demands

Published

on

The Nigeria Union of Petroleum and Natural Gas Workers suspended its two-day strike on Tuesday following a meeting with officials of the Federal Government and the Dangote Group, amid fuel supply disruptions in different locations across the country.

The National President of NUPENG, Williams Akporeha, confirmed this to one of our correspondents. After the failure of the Monday meeting, the Ministry of Labour summoned another meeting on Tuesday with more stakeholders in attendance.

Those in attendance included representatives of the Dangote Group led by Sayyu Dantata, officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and others. An agreement signed after the meeting showed that the Dangote refinery agreed to unionise its members.

“Following the threat to embark on industrial action by the Nigeria Union of Petroleum and Natural Gas Workers over the refusal of the management of the Dangote Refinery and Petrochemical Limited to allow their employees to be unionised by registered labour unions, a conciliation meeting was held at the instance of the Minister of Labour and Employment, and it was revealed in the course of the meeting that:

“The management agreed with this fact and responded that they are not averse to the unionisation of their employees by labour unions in tandem with the provisions of the extant labour laws. After exhaustive deliberations, the following resolutions were reached by both parties: That since workers’ unionisation is a right in line with the provisions of the extant laws, the management of Dangote Refinery and Petrochemicals agreed to the unionisation of employees of Dangote Refinery and the unionisation of employees of Petrochemicals who are willing to unionise.

“That the process of unionisation shall commence immediately and be completed within two weeks (9th-22nd September, 2025), and it was agreed that the employer will not set up any other union.

Arising from the strike notice, no worker or employee of Dangote Refinery and Petrochemical will be victimised,” the agreement read.

Parties are to revert to the Minister of Labour a week after the conclusion of the engagement. Based on the MoU, NUPENG agreed to suspend the industrial action with immediate effect.

The MoU was signed by Dangote’s Sayyu Dantata; NUPENG’s Akporeha and his Secretary, Afolabi Olawale; an official of the NMDPRA, OK Ukoha; a director of the labour ministry, Amos Falonipe; and representatives of the Nigerian Labour Congress and the Trade Union Congress.

However, as the strike entered the second day before its suspension on Tuesday, Nigerians in different parts of the country felt the impact as many filling stations were shut. NUPENG had on Friday declared its intention to stop loading fuel this week over allegations that the Dangote refinery planned to ban the drivers recruited for its 4,000 trucks from joining the union.

Recall that the Dangote refinery planned to start direct fuel distribution from August 15 with its 4,000 Compressed Natural Gas-powered trucks. But the scheme was delayed due to a lack of enough ships to bring the trucks to Nigeria. While the refinery is still receiving the trucks as they arrive in Nigeria, the Petroleum Tanker Drivers branch of NUPENG accused the refinery management of anti-labour practices for not allowing its drivers to join the union.

They also accused Alhaji Aliko Dangote of plans to render them useless with his direct fuel distribution scheme. NUPENG President Akporeha on Sunday confirmed that the Federal Government had reached out to the union on the need to avert the strike, but he refused to call off the strike.

Following the inability of the Federal Government to broker peace between NUPENG and the Dangote refinery at the Monday conciliation meeting organised by the Minister of Labour and Employment, Muhammad Dingyadi, the union continued the strike, shutting down depots and some filling stations. The suspension of the strike later in the evening was a relief in areas where its impact was felt.

In states like Cross River and Kaduna, many filling stations were under lock and key on Tuesday, while some adjusted pump prices in Sokoto and Enugu. It was also gathered that vehicle owners engaged in panic buying in parts of Lagos and Ogun States.

The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, told The PUNCH that “PETROAN members joined the strike on Tuesday, as the Monday meeting with the labour minister yielded no result.” Gillis-Harry, who described the strike as a looming danger, however, appreciated the Federal Government for its prompt intervention.

Fuel supply disruptions

In Calabar, the capital of Cross River, commuters and residents lamented the hike in fares following the fuel scarcity in the state on Tuesday. Commuters said that the fuel scarcity triggered a hike in transport fares, leaving many commuters stranded and frustrated.

Explaining how the fuel scarcity affected transport costs, a resident, Mary Archibong, said, “The fuel scarcity has affected everyone in one way or another. Before now, from Watt to Calabar Roundabout, it used to be N300, but now it’s N500. It is very bad because the drivers are now buying from the black market at N1,500 per litre,” she said.

It was learnt commercial activities in Kaduna were on Tuesday crippled as the now-suspended strike forced major filling stations in the metropolis to shut down their operations. A visit to several parts of the state capital revealed that virtually all major filling stations had locked their gates, leaving motorists and residents stranded.

At the Barnawa area in Kaduna South Local Government Area, Future View Filling Station and the NNPC Mega Filling Station along Aliyu Makama Road were under lock and key. Residents expressed frustration as the strike entered its first day. “I drove around for over an hour looking for fuel. Nowhere is selling,” lamented Musa Lawal, a commercial tricycle operator.

The situation was the same across other parts of the city. At the busy Station Roundabout, the AA Rano and Shema filling stations remained shut, while at the Ahmadu Bello Stadium Roundabout, Total, MRS, and the NNPC Mega Station all closed shop. The stations were deserted.

Similarly, the Total and Mobil filling stations along Ahmadu Bello Way and Muhammadu Buhari Way (formerly WAFF Road) were not dispensing fuel when our correspondent visited.

Some motorists who managed to find fuel at smaller independent stations complained of arbitrary price hikes. A motorist, Sani Ibrahim, told The PUNCH that he bought fuel at N950 per litre, up from N860 the previous day.

In Enugu, commuters were stranded on Tuesday due to fuel scarcity. Many petrol stations closed shops at noon. Motorists were unable to access petrol, so they were left idling on major roads, while some resorted to black-market vendors charging up to N1,500 per litre.

It was observed that busy roads such as Ogui Junction, Abakpa Junction, IMT, Emene, and Holy Ghost were unusually scanty on Tuesday, with few vehicles moving around to pick passengers. The strike led to immediate fare hikes . Buses raised fares from N300 to N500 from Garriki to New Market.

The PUNCH reports that there were long queues in many filling stations across Anambra State on Tuesday, resulting in the sharp increase in transportation fares for both interstate and intrastate movement. The queues built up in some parts of Onitsha, Awka and Nnewi, as only a few filling stations were seen dispensing the product.

As a result, commuters had a hectic time going to their various destinations as commercial transport operators hiked transport fares by over 50 per cent. Many motorists hiked their fares as a result of the development. It was observed that a journey of N200 cost as much as N400, while that of N300 became N600.

In Gombe, fuel prices climbed to between N910 and N1,000 per litre. At a filling station along Gombe-Bauchi Road, an attendant, who pleaded anonymity, confirmed the increment, saying marketers were reacting to “uncertain developments in the sector.”

He added, “We are still selling because supply is steady, but once depots are locked, the price will go up further. That is why our managers adjusted the pump price early.”  Meanwhile, there was not much impact felt in states like Jos, Kano, Zamfara and Ilorin. There was a marginal price increase in Sokoto State.

Speaking on national television earlier on Tuesday, the NUPENG boss, Akporeha, said the union had no choice but to press on with industrial action after Dangote’s management rejected recognised oil and gas unions and allegedly claimed to have a separate association for its workers.

Akporeha alleged that the representative of the Dangote refinery, Dantata, walked out of the Monday meeting when the labour minister told him that the Dangote refinery could not have a separate union for its workforce. The labour leader alleged that the Dangote refinery created an alternative drivers’ association to weaken NUPENG, describing the move as illegal.

He insisted that the law only recognised existing unions such as NUPENG, PENGASSAN and others in the oil and gas sector. While clarifying that strike action was a legitimate industrial tool, Akporeha stressed that dialogue remained open.

“Strikes are part of industrial relations. But under my leadership, it has never been the first option, but no employer has the right to enslave workers,” he said. He dismissed allegations that NUPENG was attempting to sabotage the refinery or frustrate local production.

“Everybody wants Dangote to succeed, including NUPENG. But he must play by the rules. Nigeria cannot afford investors who act like dictators or slave drivers,” he said. On Monday, depots and filling stations were also closed by NUPENG members. The Aradel refinery in Obele, Port Harcourt, was shut. The Kwale Hydrocarbon facility in Delta State was shut.

Checks by one of our correspondents confirmed that activities at petroleum depots were paralysed across the country. NUPENG officials visited the depots on Monday and the early hours of Tuesday to enforce compliance. In various states across the country, especially those in Lagos and Warri, Delta State, drivers parked their trucks to wait for the next directive as far as fuel lifting was concerned.

Our correspondent reports that NUPENG officials shut down some depots to prevent the movement of trucks. The National President of NUPENG, Williams Akporeha, told our correspondent that there was “100 per cent compliance across the nation.” Some members of the union accused Dangote and MRS of having plans to take over their jobs with the recruitment of new drivers.

At Aiteo, RainOil, Shell+, First Royal, MAO, Hensmor, One Terminals, Africa Terminals, Integrated Oil and Gas, and other depots in Lagos, the gates were locked as workers stayed away to comply with the strike action. Also, A&E, Matrix, Parker AY Shafa, and other depots in Warri joined the strike on Monday. The PUNCH reports that with the suspension of the industrial action, loading of fuel is expected to resume on Wednesday.

(Additional reports by: Raphael Ede, Ikenna Obianeri, Chima Azubuike, James Abraham, Hussaini Ibrahim, Maiharaji Altine, Animasahun Salman, and Dare Akogun)

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading

Business

Tanker drivers’ strike will not cause fuel shortage – Dangote Refinery

Published

on

A spokesman for Nigeria’s Dangote refinery said Tuesday that the country would not see a petrol shortage despite an ongoing strike by a union representing fuel tanker drivers.

The strike, which began Monday and has since drawn support from other unions in Nigeria and abroad, comes as the refinery, the largest in Africa, is hiring its own drivers to deliver gasoline to retailers.

“There is no fuel shortage, everything is going on,” a refinery spokesman, Anthony Chiejina, told AFP, adding that talks were continuing between the union, the government, and the company.

Before last year’s opening of the Dangote refinery, with a capacity of 650,000 barrels per day, Nigeria had to import almost all its petrol despite being a major oil producer.

Critics pointed to years of neglect and mismanagement of government-owned refineries.

The Dangote refinery has driven down prices of petrol for consumers while also shaking up long-entrenched players in Nigeria’s oil sector, marred by decades of corruption.

But it has also sparked monopoly fears as it becomes a powerful player backed by Africa’s richest man, Aliko Dangote.

Last month, the refinery was set to deploy a fleet of thousands of trucks powered by compressed natural gas to distribute its petrol nationwide, an initiative that has been delayed due to logistics issues.

But the plans have roiled a market where more than 20,000 diesel-powered tankers have operated for decades.

The Nigeria Union of Petroleum and Natural Gas Workers launched its strike Monday, alleging that Dangote’s new drivers were being hired on the condition they do not join the union—allegations disputed by Dangote.

“What Dangote has shown over time is that he’s not prepared to have workers that will have a say in his employment,” union president Williams Akporeha told Nigerian broadcaster Arise News on Tuesday.

NUPENG has seen support pour in from local organisations, including the Nigeria Labour Congress, as well as groups from abroad, including global union IndustriALL, based in Switzerland, and the International Lawyers Assisting Workers network branch in Washington.

Chiejina, the Dangote spokesman, denied the claim that its drivers were not being allowed to join a union, calling it “cheap blackmail.”

“It’s not true… nobody has done that and nobody ever has,” he said.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading

Trending