Dangote Controversy: Farouk Ahmed Resigns Amid Regulatory Clash

The oil and gas sector was thrown into turmoil yesterday as the Chief Executives of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Farouk Ahmed, resigned from their positions.

Both agencies are responsible for ensuring compliance with petroleum laws in the upstream and downstream sectors. Komolafe and Ahmed were appointed in September 2021 by former President Muhammadu Buhari following the enactment of the Petroleum Industry Act (PIA), and reported directly to President Bola Tinubu.

Dangote’s Allegations Against Ahmed

The resignation follows a petition filed by industrialist Aliko Dangote to the Independent Corrupt Practices and Other Related Offences Commission (ICPC), accusing Ahmed of economic sabotage. Dangote claimed that the NMDPRA’s continued issuance of import licenses undermined local refining capacity, favoring importers over domestic operators.

Dangote also raised personal allegations, suggesting Ahmed was living beyond his official means, citing that four of Ahmed’s children attend secondary schools in Switzerland at high costs.

In response, Ahmed dismissed the allegations, explaining that the children’s education was funded through scholarships, family support, and personal savings. He stated:

“Three of my four children received substantial merit-based scholarships ranging from 40 to 65 per cent of tuition costs. Combined with family contributions and savings from decades of service, funding my children’s education required neither corruption nor living beyond my means. I have submitted detailed asset declarations to the Code of Conduct Bureau every year.”

Meeting with President Tinubu

Ahmed reportedly visited the Presidential Villa yesterday evening, meeting with President Tinubu for less than 25 minutes, though details of the discussion were not disclosed.

President Nominates Successors

Following the resignations, President Tinubu has requested Senate approval for new CEOs: Oritsemeyiwa Eyesan for NUPRC and Engr. Saidu Mohammed for NMDPRA. A statement by the President’s Special Adviser, Bayo Onanuga, highlighted the nominees’ experience in the oil and gas sector:

• Oritsemeyiwa Eyesan: Economics graduate from the University of Benin with nearly 33 years at NNPC, retired as Executive Vice President, Upstream (2023–2024).
• Engr. Saidu Mohammed: Chemical Engineering graduate from Ahmadu Bello University, former MD of Kaduna Refining & Petrochemical Company and Nigerian Gas Company, with extensive experience in major gas projects.

Calls to Prioritize Local Refining

Dr. Olisa Agbakoba, Senior Partner at OAL Energy, noted that the dispute reflects broader national interests:

“Nigeria now has a $20 billion refinery, yet we continue importing petroleum products. This is not just a commercial disagreement; it is about economic sovereignty, local refining, employment, and industrial development. We must question whether Nigeria’s petroleum strategy serves national interest or perpetuates dependency.”

Professor Emeritus Wumi Iledare also weighed in, stressing that supporting domestic refining does not create a monopoly:

“Prioritizing indigenous refining can only be oligopolistic, not monopolistic. Dangote is not seeking to monopolize the market, and monopoly is not good for sustainable business.”

The resignations may mark the end of the publicized clash between Dangote and Ahmed over petroleum import licenses, as Nigeria navigates the tension between promoting local refining capacity and regulatory oversight.

Opinion Nigeria News