Dangote Group CEO’s criticism of the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed is over the regulator’s refusal of a proposed 15 percent levy on petrol, this newspaper found out.
The Dangote Group has launched a campaign against the NMDPRA chief, probing his personal life and alleging corruption but its been gathered that the attack is to force the regulator’s hands to levy petrol, which would help put Dangote refinery’s competitors out of business.
The proposed levy, if implemented, would have pushed the pump price of petrol beyond ₦1,000 per litre, significantly increasing the financial burden on Nigerians already struggling with high living costs. The levy was rejected by regulators and the Federal Government, with President Bola Tinubu declining to approve it.
Farouk Ahmed has since come under criticism from interests opposed to the decision, with observers linking the attacks to disagreements over pricing control in Nigeria’s post-subsidy fuel market. Officials familiar with the matter say the NMDPRA maintained that introducing the levy at this time would have worsened inflation and transport costs nationwide.
Speaking on the issue, energy analyst, Dr. Philips Emmanuel said the regulator’s position was consistent with the realities of the Nigerian economy.
“Adding a 15 percent levy to petrol right now would have been catastrophic for consumers,” Emmanuel said. “The regulator was right to push back. Nigeria is still adjusting to subsidy removal, and sudden price shocks would only deepen hardship.”
Since the removal of fuel subsidies, Nigeria has faced supply challenges, including limited local refining capacity and logistical constraints. To address this, the NMDPRA has relied on a combination of local supply and strategic imports to ensure fuel availability and avoid prolonged shortages.
Farouk Ahmed, who previously worked in the United States and the United Kingdom within the oil and gas sector, is said to have drawn on international experience in fuel market regulation. Supporters argue that his exposure to mature energy markets has informed his emphasis on regulatory independence and consumer protection.
Another energy expert, Mr. Olanrewaju Adigun, a downstream petroleum consultant, said the dispute reflects a wider struggle over influence in Nigeria’s energy market.
“What we are seeing is a clash between regulation and commercial power,” Adigun said. “Large investors are important, but regulators exist to prevent any single player from setting prices or forcing policy decisions that affect millions of people.”
The disagreement follows debates over Dangote’s fuel quality and market dominance.
An exclusive report by Politics Nigeria revealed that diesel produced by Dangote Refinery had higher sulphur levels than initially presented to lawmakers, raising concerns about environmental and engine safety standards.
Dangote Group has denied the claims, insisting its diesel meets international standards and arguing that some imported fuels enter Nigeria with questionable certifications. The company has also invited regulators to independently test its products.
While the Dangote Refinery is widely regarded as a strategic national asset expected to reduce fuel imports, analysts caution against allowing excessive market concentration.
Concerns have been raised by industry watchers who point to the cement sector, where Dangote Cement controls a significant share of the market. Critics also argue that limited competition in that sector has contributed to persistently high prices, a situation they warn could be replicated in the fuel market without firm regulation.
Addressing personal allegations made against Farouk Ahmed, government officials have stated that lifestyle claims do not amount to evidence of misconduct. They stressed that any substantiated allegations should be presented to security agencies for investigation.
For now, officials say the decision to reject the 15 percent petrol levy was taken in the interest of economic stability and public welfare. They warn that pushing fuel prices above ₦1,000 per litre could have triggered widespread economic disruption. Read Full Original