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Reps Move to Defuse Dangote–NMDPRA Clash

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Atume Terfa

Nigeria’s House of Representatives has stepped into a growing standoff between billionaire industrialist Aliko Dangote and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), summoning both parties in a bid to contain tensions threatening the stability of the downstream petroleum sector.

The intervention followed an emergency meeting in Abuja by the Joint House Committee on Petroleum Resources (Downstream and Midstream), which said the dispute had escalated to a level requiring urgent legislative oversight. The committee warned that unchecked regulatory conflicts could disrupt fuel supply, pricing structures, and market confidence at a time when the sector is still adjusting to life after the removal of petrol subsidies.

Lawmakers expressed concern over the increasingly public nature of the feud, marked by sharp allegations and counter-allegations exchanged through the media. They cautioned that the ongoing war of words could unsettle the fragile calm in the downstream market and ordered both sides to suspend public commentary while appearing before the National Assembly to formally present their positions.

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At the heart of the disagreement are claims by Dangote that the regulator continues to issue licences for the importation of refined petroleum products despite the growing capacity of local refineries to meet domestic demand. The Dangote Refinery has argued that such approvals weaken local refining efforts, discourage investment and pose long-term risks to Nigeria’s energy security. Lawmakers say the petitions before them also raise broader concerns about regulatory consistency and transparency in licensing decisions.

The dispute has since moved beyond parliamentary chambers. Dangote has reportedly petitioned the Independent Corrupt Practices and Other Related Offences Commission (ICPC), accusing the NMDPRA’s chief executive, Farouk Ahmed, of corruption and financial misconduct. The anti-graft agency has acknowledged receipt of the petition and confirmed that preliminary steps toward an investigation are underway.

Ahmed, who heads the regulatory authority created under the Petroleum Industry Act of 2021, has yet to make a public response to the allegations.
The House of Representatives said its involvement reflects rising concern that unresolved regulatory battles could undermine investor confidence, destabilise fuel markets and reverse recent progress toward domestic refining and energy self-sufficiency. Lawmakers pledged to fast-track their review and work toward a resolution that balances regulatory authority with investor protection.

As scrutiny of the downstream sector intensifies, industry stakeholders and legal experts are urging restraint, dialogue and adherence to due process, warning that prolonged confrontation could have far-reaching consequences for Nigeria’s petroleum industry and broader economy.

 

 

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