PETROAN says Dangote’s allegations against NMDPRA’s CEO may discourage foreign investors

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) says allegations made by Aliko Dangote, president of Dangote Group, against the leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), can deter potential foreign investors.

On Monday, Dangote alleged that Farouk Ahmed, NMDPRA’s chief executive officer (CEO), “paid $5 million” to a Swiss secondary school for his children’s education, describing the act as “economic sabotage and corruption”.

Releasing details of his allegations, in the newspaper advert, Dangote listed the four children as Faisal Farouk, Farouk Jr., Ashraf Farouk, and Farhana Farouk.

In a statement on Tuesday, Billy Gillis-Harry, national president of PETROAN, said the action could erode confidence in Nigeria’s regulatory institutions.

He, therefore, called on President Bola Tinubu to urgently intervene to resolve the ongoing dispute in the downstream petroleum sector.

Gillis-Harry also called on the president to promote dialogue over confrontation, uphold the provisions of the Petroleum Industry Act (PIA), ensure fair competition, and restore stability and confidence in the downstream industry.

He said ongoing allegations and verbal attacks “directed at the leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by Aliko Dangote, president of Dangote Group, are capable of discouraging potential foreign investors and eroding confidence in Nigeria’s regulatory institutions”.

‘PETROAN PASSES VOTE OF CONFIDENCE ON NMDPRA LEADERSHIP’

According to the statement, PETROAN, at its emergency ordinary national general meeting held on Monday, passed a vote of confidence on the leadership of the NMDPRA under the leadership of Ahmed.

PETROAN said the decision followed the reforms, strategic governance, and regulatory clarity introduced by the NMDPRA in the Nigerian downstream petroleum sector.

“Of serious concern are the negative public statements made against Nigeria’s national refineries, suggesting that they are unattractive for investment. PETROAN maintains that sound business ethics discourage running down another entity’s business, irrespective of competition,” the statement reads.

“PETROAN strongly condemns the announcement or pronouncement of petroleum product prices by any individual, corporate body, or agency.”

PETROAN said Nigeria’s four refineries are viable for acquisition and that the downstream petroleum sector remains business-friendly and attractive to both local and foreign investors.

Furthermore, the association said the unresolved issues “involving NUPENG and PENGASSAN in relation to Dangote refinery remain pending and continue to compound the crisis in the downstream sector”.

PETROAN warned that failure to promptly resolve the ongoing disputes and tensions could lead to supply chain disruptions, artificial fuel shortages, job losses, declining investor confidence, regulatory uncertainty, and unhealthy price manipulation in the sector.

The association further emphasised that only constructive negotiation and fair commercial engagement are key to attracting importers to local refineries.

“Such engagement must not be driven by compelling or brutal price-ambushing strategies, which undermine market confidence and distort fair competition,” PETROAN said.

“PETROAN believes that the current dirty price war is already causing collateral damage to all parties involved. Most of the aggressive price crashes appear designed to frustrate importers and are often executed below cost.

“Consequently, all parties in the price war may be operating at a loss in a bid to gain market dominance, a development PETROAN considers unsustainable and harmful to the long-term stability of the downstream sector.”

The association also asked the Nigerian National Petroleum Company (NNPC) Limited to hasten the process of engaging credible private-sector partners for the rehabilitation, management, or co-ownership of the national refineries.