The Petroleum Products Retail Outlets Owners Association of Nigeria has warned that allegations made by Aliko Dangote against the leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority could damage investor confidence and discourage foreign capital from Nigeria’s downstream petroleum sector.
PETROAN raised the concern following claims by Dangote, president of the Dangote Group, that, Farouk Ahmed chief executive officer of the NMDPRA, paid about five million dollars in school fees to a Swiss secondary school for his children. Dangote described the alleged payment as an act of corruption and economic sabotage, publishing the accusation in a newspaper advert in which he named the four children involved.
In a statement issued on Tuesday, PETROAN’s national president, Billy Gillis-Harry, said the public nature of the allegations and the growing verbal exchanges could weaken confidence in Nigeria’s regulatory institutions at a time when the country is seeking foreign investment in its energy sector. He called on President Bola Tinubu to urgently step in to calm tensions and steer the industry toward dialogue rather than confrontation.
Gillis-Harry urged the federal government to uphold the Petroleum Industry Act, ensure fair competition, and restore stability in the downstream sector. He said sustained attacks on the regulator’s leadership were capable of sending the wrong signal to investors who depend on regulatory clarity and institutional credibility before committing capital.
At an emergency ordinary national general meeting held on Monday, PETROAN said it passed a vote of confidence on the leadership of the NMDPRA under Ahmed. The association cited what it described as reforms, improved governance, and clearer regulatory direction introduced by the authority in recent years.
The association also expressed concern over public statements it said were aimed at portraying Nigeria’s national refineries as unattractive for investment. PETROAN maintained that the country’s four refineries remain viable assets and that the downstream petroleum industry is still business-friendly for both local and foreign investors. It warned that running down competing assets, regardless of market rivalry, undermines sound business ethics.
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PETROAN further condemned the announcement of petroleum product prices by individuals or entities outside the appropriate regulatory framework, warning that such actions could distort the market. It said unresolved disputes involving labour unions, including NUPENG and PENGASSAN, in relation to the Dangote refinery were adding to instability in the sector.
According to the association, failure to resolve the ongoing disagreements could trigger supply chain disruptions, artificial fuel shortages, job losses, regulatory uncertainty, and declining investor confidence. It also cautioned against what it described as aggressive price crashes designed to force competitors out of the market, noting that pricing below cost is unsustainable and harmful to the industry’s long-term health.
PETROAN said constructive negotiation and fair commercial engagement remain the only viable path to attracting importers to local refineries and sustaining competition. It added that the current price war was already inflicting damage across the sector, with multiple players likely operating at a loss in a bid to gain market dominance.
The association also called on the Nigerian National Petroleum Company Limited to accelerate efforts to engage credible private sector partners for the rehabilitation, management, or co-ownership of the nation’s refineries, saying such partnerships are critical to restoring confidence and ensuring stability in Nigeria’s downstream petroleum industry.
