Since the historic commissioning of the Dangote Petroleum Refinery in Ibeju-Lekki on 22nd May 2023, Africa’s richest man, Aliko Dangote, has found himself at the centre of a high-stakes industrial war.

What was envisioned as a smooth path toward Nigeria’s energy independence has instead become a gauntlet of regulatory ‘tugs-of-war,’ pricing disputes, and crude oil supply hurdles.

Dangote refinery, valued at $20 billion, is poised to end Nigeria’s fuel imports by processing 650,000 barrels of crude daily, producing Euro-V quality fuels, and becoming a major player in African energy.

This world’s largest single-train refinery also features a deep seaport, power plant, and fertiliser unit, creating jobs and boosting Nigeria’s economy. 

From face-offs with the importers of petroleum products to tense negotiations with government regulators, TVC News take an in-depth look at every major battle the billionaire has fought to keep his multi-billion dollar dream alive.

High Sulfur content allegations

There were online reports alleging that the diesel recently supplied by the $20bn Dangote refinery contained high sulphur.

The claim gained traction in 2024 when the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Authority, Farouk Ahmed, spoke about the quality of diesel produced by Dangote refinery.

Ahmed said, “So, in terms of quality, currently the AGO quality in terms of sulphur is the lowest as far as the West African requirement of 50 ppm is concerned.

“Dangote refinery and some modular refineries, like Waltersmith refinery and Aradel refinery, are producing between 650 and 1,200ppm. So, in terms of quality, their product is much inferior to the imported quality,” he alleged.

However, the oil marketers stated that despite the allegations of high sulphur in Dangote diesel, no motorist or industrial consumer had registered any complaint against the product.

“We don’t want to be involved in the politics or claims and counter-claims about Dangote diesel, but what I’m going to tell you is that no transporter, motorist, or industrial consumer has complained about the diesel since we started distributing it,” the National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, stated.

A top official of the Dangote Group told Punch Newspaper that the recent report on high sulphur content in Dangote diesel emanated from individuals who were hellbent on destroying the refinery, describing the report as fake.

Alleged Sabotage of Oil Plants and Union Roar

Controversy trailed Dangote refinery over the latest reorganisation of its workforce following incidents of sabotage recorded, which threaten the operational safety of its petrochemical plant.

A letter dated September 24, 2025, and signed by the Chief General Manager, Human Asset Management, Femi Adekunle, the refinery said it was “constrained to carry out a total reorganisation of the plant” following “many recent cases of reported sabotage in different units of the Petroleum Refinery leading to major safety concerns.”

In the letter, staff were directed to hand over all company property to their line managers and await clearance before receiving their entitlements. A directive was sent to the Finance Department to compute in line with their conditions of service.

However, the decision by the refinery to sack some of its senior officials was met with intense pushback from members Petroleum and Natural Gas Senior Staff Association of Nigeria.

The face-off between PENGASSAN and the Dangote Refinery escalated, leading to a nationwide withdrawal of services following the sack of over 800 workers.

PENGASSAN described the mass sack of Nigerian workers at Dangote Refinery as a violation of labour rights and a dangerous precedent.

PENGASSAN alleged that the refinery replaced its workers with over 2,000 foreign nationals, describing the move as an “enslavement of Nigerian workers.”

Dangote CNG Truck Purchase Roar

Dangote refinery rolled out plans to purchase over 4,000 CNG trucks for direct distribution, aiming to cut logistics costs and pump prices.

This initiative by Dangote refinery spiked accusation from the National Union of Petroleum and Natural Gas Workers that the refinery is working to suppress members of the union.

Tanker drivers, including NUPENG members, embarked on an intense protest at the refinery, stopping fuel loading at depots, leading to traffic jams and clashes with authorities.

DAPPMAN, Dangote Fuel Price War

Read Also

Dangote refinery accused the Depot and Petroleum Products Marketers Association of Nigeria of reportedly requesting that the refinery should cover logistics costs through subsidised fuel prices.

Dangote refinery stated that DAPPMAN insisted on receiving products through coastal logistics, an option that would add N75 per litre in additional costs to consumers, which would sum up to a total cost of N1.505 trillion annually, according to its statistics.

Reacting to the allegations, DAPPMAN issued a 7-day ultimatum to Dangote to retract the statement or face legal action.

The refinery, across multiple news platforms nationwide, stated that all aggrieved parties over the publication can seek redress in court, stating that it is not moved by the 7-day ultimatum given by DAPPMAN.

The company disclosed that DAPPMAN’s several attacks against its operations stemmed from the demand for an annual subsidy of N1.505 trillion to enable their members to match the refinery’s gantry prices at their own depots, which is against the price the company offers for petroleum products to marketers.

The statement reads, “Dangote Petroleum Refinery stands by its statement on the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), published on Monday, September 15, in the following national newspapers: The Guardian, ThisDay, The Punch, Daily Trust, Nigerian Tribune, Daily Sun, Vanguard, The Nation, BusinessDay, Leadership, Daily Independent, and Blueprint, as well as on numerous reputable online platforms.

It added, “We wish to clarify that the crux of DAPPMAN’s sustained attacks on Dangote Petroleum Refinery stems from their demand for an annual subsidy of N1.505 trillion to enable their members to match the refinery’s gantry prices at their own depots.

“While we offer petroleum products to marketers at our gantry price, DAPPMAN insists on receiving products via coastal logistics, an option that would add N75 per litre in additional costs. Based on projected daily consumption volumes of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), this amounts to an additional annual cost of N1.505 trillion (N1,505,625,000,000), which they are effectively asking us to absorb and pass on to consumers.

“Specifically, the marketers are demanding that we discount N70/litre in coastal freight, NIMASA, NPA and other associated costs, as well as N5/litre for the cost of pumping into vessels to enable them to transport products from our refinery to their depots in Apapa and sell at the same price as our gantry.”

Shortage of Crude Supply

As seen on Punch newspaper, Dangote Petroleum Refinery says the Federal Government has not met its target to supply crude oil to the refinery under the naira-for-crude initiative.

The refinery stated that the amount of crude received from the Nigerian National Petroleum Company Limited is “peanuts” compared to the volume needed to ramp up the production of refined products.

A report by Reuters, quoting an interview with the Vice President of Dangote Industries Limited, Devakumar Edwin, said the NNPCL hasn’t met the target to deliver a minimum of 385,000 bpd since the commencement of the program in October.

“We need 650,000 barrels per day. NNPCL agreed to give a minimum of 385,000 bpd, but they are not even delivering that,” the Dangote official said.

Battle With Leadership of NMDPRA

Amid the countless battles faced by Dangote refinery, a new plot twist surfaced this week when the Chairman of the Dangote Group, Alhaji Aliko Dangote, alleged that the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, paid about $5m for the secondary school education of his four children in Switzerland, urging the Nigerian authorities to launch a full investigation into the allegations.

Dangote, while addressing journalists on Sunday, stated that the alleged spending doesn’t match earnings from public service, adding that such a situation would ordinarily attract scrutiny from tax authorities.

He said, “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. I mean, you cannot imagine somebody paying $5m for educating four children.”

“When you look at his income, his income does not match paying this kind of fee. And even if it’s me paying $5m for six years for my four children, the taxman has to look at my taxes and how much I pay,” he stated.

Tinubu Orders Major Shake-up In NMDPRA, NUPRC

Following the controversy surrouding the leadership of the NMDPRA, President Bola Ahmed Tinubu has asked the Senate to approve the nominations of two new chief executives for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The requests followed the resignation of Engineer 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 (PIA).

President Tinubu has written to the Senate, requesting expedited confirmation of Oritsemeyiwa Amanorisewo Eyesan as CEO of NUPRC and Engineer Saidu Aliyu Mohammed as CEO of NMDPRA.