Nigeria’s petroleum sector was thrown into fresh uncertainty on Wednesday following the resignation of the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, and his counterpart at the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, amid the deepening controversy triggered by allegations and a petition filed by the President of the Dangote Group, Aliko Dangote.
The Presidency announced the resignations of the two regulators on Wednesday, a development widely seen as fallout from the escalating dispute between the Dangote refinery and the NMDPRA over fuel importation, pricing, and regulatory oversight in the downstream sector.
The shakeup came days after Dangote publicly accused Ahmed of economic sabotage and petitioned the Independent Corrupt Practices Commission to investigate what he described as questionable personal wealth, including allegations that the regulator paid about $5m for the secondary education of his four children in Switzerland.
On Sunday, Dangote had launched a direct attack on Ahmed, questioning the source of his wealth and how he could afford such an amount for his children’s education. The allegations escalated on Tuesday when Dangote formally wrote to the ICPC, demanding a full investigation into the NMDPRA boss.
In response to the petition and the controversy it generated, Ahmed was summoned to the Presidential Villa, and his resignation was subsequently announced. Komolafe, who was not directly involved in the immediate dispute, was also affected, with sources indicating that the Presidency opted for a simultaneous leadership change at both regulatory agencies.
Confirming the development, the Special Adviser to the President on Information and Strategy, Bayi Onanuga, announced the resignation of the two chief executives and the nomination of their replacements. According to Onanuga, President Tinubu has asked the Senate to approve the nominations of new chief executives for both agencies.
“The requests followed the resignation of Engr Farouk Ahmed of the NMDPRA and Gbenga Komolafe of the NUPRC. Both officials were appointed in 2021 by former President Buhari to lead the two regulatory agencies created by the Petroleum Industry Act,” he said.
“To fill these positions, President Tinubu has written to the Senate, requesting expedited confirmation of Oritsemeyiwa Amanorisewo Eyesan as CEO of NUPRC and Engr Saidu Aliyu Mohammed as CEO of NMDPRA,” Onanuga added.
He described the nominees as seasoned professionals in the oil and gas industry.
“Eyesan, a graduate of Economics from the University of Benin, spent nearly 33 years with the NNPC and its subsidiaries. She retired as Executive Vice President, Upstream (2023–2024), and previously served as Group General Manager, Corporate Planning and Strategy at NNPC from 2019 to 2023.
“Engineer Saidu Aliyu Mohammed, born in 1957 in Gombe, graduated from Ahmadu Bello University in 1981 with a Bachelor’s degree in Chemical Engineering. He was announced today (Wednesday) as an independent non-executive director at Seplat Energy.
“His prior roles include Managing Director of Kaduna Refining and Petrochemical Company and Nigerian Gas Company, as well as Chair of the boards of West African Gas Pipeline Company, Nigeria LNG subsidiaries, and NNPC Retail,” Onanuga said.
Marketers jittery
The resignation of the regulators has heightened anxiety in the downstream oil sector, with marketers warning that the unfolding crisis could accelerate business failures, especially following the aggressive price cuts by the Dangote refinery.
A major marketer familiar with the developments, who spoke to one of our correspondents on condition of anonymity due to the sensitivity of the matter, said the NMDPRA boss was invited to the Presidential Villa on Wednesday morning.
“The NMDPRA boss was invited to the Presidential Villa on Wednesday morning, and I believe it was during that meeting that he was asked to resign. But I must state that, inasmuch as we don’t support corruption, the only accusation against Farouk was that of an alleged payment for his kids.
“It is not against the law to issue licences for fuel imports, and Dangote cannot hold that against him. This matter, along with the resignation of the regulators, has naturally caused tension in the downstream oil sector. It does not send a good signal to operators. Dealers will be jittery, especially when dealing with Dangote,” the marketer said.
He added that the development had intensified fears of an imminent collapse of businesses across the downstream segment. “Since Dangote crashed the gantry price of petrol to N699 per litre, we have lost over 90 per cent of marketers who lift products from our depots.
“We only supply our own stations with a few tankers. In fact, we have two vessels of petrol that will be in Nigeria in a couple of weeks, and the products on these vessels have been fully paid for. And there is no way you can sell the product at Dangote’s price to make a profit.
“So it is the worst form of competition to crash prices to that level and make losses in the hundreds of billions of naira, just in a bid to kill your competitors. This is shocking. When you now hear the resignations today, tell me, why won’t you be jittery? Of course, we have to be. There is tension,” he said.
Dangote-NMDPRA row
The row between Dangote and the outgoing NMDPRA boss dates back to 2024, shortly after the $20bn Dangote refinery began fuel production.
At the time, Dangote’s deputy, Devakumar Edwin, accused the NMDPRA of indiscriminately issuing licences to marketers to import what he described as “dirty” refined products, forcing the refinery to export diesel and aviation fuel.
“The decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority in granting licences indiscriminately for the importation of dirty diesel and aviation fuel has made the Dangote refinery expand into foreign markets. The refinery has recently exported diesel and aviation fuel to Europe and other parts of the world,” Edwin said.
He added that the refinery was attacked for crashing diesel and aviation fuel prices, insisting that the company’s goal was to grow the Nigerian economy.
However, Ahmed responded with comments that sparked public outrage when he alleged that Dangote fuel was inferior to imported products, claiming it contained higher sulphur levels.
“We cannot rely heavily on one refinery to feed the nation, because Dangote is requesting that we should suspend or stop importation of all petroleum products, especially AGO, and direct all marketers to the refinery; that is not good for the nation in terms of energy security,” Ahmed had said.
He further alleged that while imported diesel met the West African sulphur specification of 50 parts per million, products from Dangote and some modular refineries ranged between 650 and 1,200 ppm. The comments triggered widespread calls for his removal.
Import surge, fresh accusations
In a report released last week, the NMDPRA justified fuel import licences, stating that there was a shortage in September and October. Data from the authority showed that NNPC and other marketers imported at least 1.5 billion litres of petrol in November alone.
The November import figure of 52.1 million litres per day was the highest since the Dangote refinery started petrol production in September 2024, even as the Lekki refinery supplied 19.5 million litres per day during the same period.
The NMDPRA explained that low supply in September and October 2025, below national demand, necessitated increased imports. In September, Dangote supplied 17.6 million litres per day, while imports stood at 22.1 million litres per day.
Dangote reacted angrily, accusing Ahmed of sabotaging the economy by issuing “reckless” import licences while his refinery tanks were full. “As we speak now, even our tanks are full because the NMDPRA has issued reckless licences. And we have to now go and complain to the government,” Dangote said.
“They are now ready to issue licences for about 7.5 billion litres for the first quarter of 2026, despite the fact that we have guaranteed to supply enough quantity,” he added. He dismissed monopoly accusations, insisting that no one was prevented from building or acquiring refineries.
Dangote escalated the matter by accusing Ahmed of paying $5m for the education of his four children in Switzerland, calling for a full investigation and for the regulator to appear before the Code of Conduct Tribunal.
“I’ve actually had people making complaints about a regulator who has actually put his children in secondary school. And that secondary school education, which is six years, four of them cost Nigeria $5m,” Dangote said during a press briefing at the refinery in Lekki.
Though Ahmed did not publicly respond, he was said to be confident that the ICPC investigation would clear him. However, he exited office before the probe could begin.
Komolafe affected
While Komolafe was not directly involved in the immediate price war, his resignation is linked to longstanding friction between the Dangote refinery and the NUPRC over the Domestic Crude Supply Obligation.
In June 2024, Edwin accused international oil companies of deliberately frustrating the refinery’s access to local crude by selling above market prices, forcing it to import crude from the United States and other countries.
The refinery also accused the NUPRC of failing to enforce domestic supply obligations. Although the NUPRC defended its actions, the dispute lingered until the Federal Government ordered the NNPC to sell crude to Dangote in naira.
The naira-for-crude deal, which began in October 2024, boosted local fuel supply, reduced queues and contributed to price cuts. Dangote subsequently slashed petrol prices from about N1,100 per litre to N875, and later to N739.
Despite the deal, Dangote said on Sunday that he still imported crude from the US, Ghana and other African countries, noting that the US alone supplied 100 million barrels in a year.
Reacting to the resignations, the President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, said the association was ready to support the incoming chief executives.
Although PETROAN had passed a vote of confidence on Ahmed on Tuesday, Gillis-Harry said leadership change should bring better service delivery.
“Leadership remains. The fact that there are changes only brings us to the expectation of better, much more effective and inclusive service delivery,” he said. “I really don’t feel qualified to get into a conversation where individuals are bantering accusations at each other,” he added.
Experts: Deep rot exposed
Industry experts said the resignations confirmed long-standing concerns about corruption, weak regulation and institutional decay.
The Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, said the development validated Dangote’s allegations. “This resignation only reaffirms my position that there is rot and corruption in Nigeria’s petroleum industry,” he said.
Energy lawyer Rasheed Osagie said the outcome was inevitable, given Dangote’s investment scale and Nigeria’s economic needs. “When the biggest investor and largest taxpayer complains, there can only be one outcome,” he said.
Professor of Petroleum Economics, Wumi Iledare, described the exits as a “moment of truth” for regulators under the Petroleum Industry Act, warning that institutional stability and regulatory independence were at stake.
Civil society leaders Auwal Rafsanjani and Debo Adeniran also called for full investigations, insisting that resignation alone was not enough.
As new leadership prepares to take charge, the petroleum sector remains tense, with operators watching closely to see whether the shakeup will restore confidence or deepen fears in an industry already rocked by a fierce petrol price war.
(Punch)
