• Industrialist seeks probe of agency

• Petrol to sell for N740 from tomorrow

Dangote Refinery and Petrochemicals yesterday accused the regulating agency of downstream sector of undermining its refinery.

He accused Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of economic sabotage and urged the government to probe its activities.
President of the Dangote Refinery, Alhaji Aliko Dangote, who spoke in Lagos yesterday at a news conference urged the government to also probe NMDPRA Chief Executive Officer (CEO), Farouk Ahmed.

He accused NMDPRA leadership of colluding with international traders and oil importers to frustrate local refining through the continued issuance of import licences for petroleum products.
Alleging that Ahmed had been living above his means, Dangote said the bills being picked by the NMDPRA boss raised serious questions about potential conflicts of interest and the integrity of regulatory oversight in the downstream petroleum sector.

He assured of further fall in the pump price of petrol. He said the product would sell at no more than N740 per litre from tomorrow in Lagos, because of his refinery’s reduction of gantry price to N699 per litre.

He said MRS filling stations would be the first to reflect the new pricing.

Expressing concern over the state of the downstream sector, Dangote said Nigeria’s continued reliance on fuel imports was harming local production and discouraging investment in domestic refining.

He said import licences covering approximately 7.5 billion litres of PMS had reportedly been issued for the first quarter of 2026, despite the availability of significant domestic refining capacity.

According to him, modular refineries are already struggling under the current policy environment and on the brink of extinction, while the persistent issuance of import permits further weakens the sector.

Dangote said: “I am not calling for his removal, but for a proper investigation. He should be required to account for his actions and demonstrate that he has not compromised his position to the detriment of Nigerians. What is happening amounts to economic sabotage.”

The business mogul said: “The Code of Conduct Bureau (CCB), or any other body deemed appropriate by the government, can investigate him.

He described the downstream petroleum sector as being under severe strain, alleging the presence of entrenched interests that profit from fuel imports at the expense of national development.

“There are powerful interests in the oil sector. It is troubling that African countries continue to import refined products despite long-standing calls for value addition and domestic refining. The volume of imports being allowed into the country is unethical and does a disservice to Nigeria,” he added.

Dangote stressed the need for a clear separation between regulatory oversight and commercial interests, warning that allowing traders to influence regulation would undermine the integrity of the sector.

“The downstream sector must not be destroyed by personal interests. A trader should never be a regulator. Forty-seven licences have been issued, yet no new refineries are being built because the environment is not conducive,” he said.

He maintained that Nigerians would ultimately benefit from local refining, fuel importers incur losses. Dangote said he would not relent in ensuring that Nigerians enjoy the benefits of domestic refining, noting that the company was working around the clock to ensure that recent reductions in the gantry price were fully reflected at the retail level.
“From Tuesday (tomorrow)”, he said, “all MRS filling stations would begin selling PMS at prices not exceeding N740 per litre, starting in Lagos.”

He added that the refinery had reduced its minimum purchase requirement from two million litres to 500,000 litres to enable more marketers, including members of the Independent Petroleum Marketers Association of Nigeria (IPMAN), to participate.

“So, if you come to the refinery today, you will get PMS at N699 per litre,” he said.

Dangote explained that despite frustration and sabotage, the refinery would deploy its Compressed Natural Gas (CNG) trucks in the coming days and was prepared to procure additional units beyond the initial 4,000 if required to sustain affordable pricing nationwide.

Responding to complaints from oil importers that the recent price reduction would result in losses, Dangote said the refinery was established primarily for the benefit of Nigerians.
“Anyone who chooses to continue importing despite the availability of locally refined products should be prepared to face the consequences,” he said.

He also highlighted quality differences, noting that products supplied through MRS and other off-takers from the refinery were straight-run fuels, unlike blended products imported from overseas markets.

“Nigerians have a choice to buy better quality fuel at a more affordable price or to buy blended PMS at a higher rate. Importers can continue to lose, so long as Nigerians benefit,” he added.

Dangote said the refinery was driven more by legacy than profit, noting that he could have invested the 20 billion dollars elsewhere if financial gain were his sole objective.

He reaffirmed the plan to list the refinery on the Nigerian Exchange to allow Nigerians to own shares in the facility.

“We want every living Nigerian to have the opportunity to benefit, no matter how small their holding. If the market takes 55 per cent and I retain 45 per cent, I am satisfied,” he said.

Dangote explained that discussions were ongoing with the Securities and Exchange Commission (SEC) to enable Nigerians to purchase shares in naira while receiving dividends in dollars.

Dangote accused the NMDPRA of misrepresenting the refinery’s capacity by publishing off-take figures rather than actual production levels.

“We have the capacity to meet local demand, and we have sufficient refined products in stock. But to keep prices high, imports are deliberately encouraged,” he said, adding that attempts were being made to push the refinery into exporting products only for them to be re-imported into Nigeria at higher prices.

“This refinery is for Nigerians first, and I am not giving up,” he said.

Dangote also explained that the refinery imports an average of 100 million barrels of crude oil annually from the United States, a figure expected to rise to 200 million barrels following expansion, due to insufficient domestic crude supply.

He added that the refinery also sources crude from Ghana and other countries, while exporting jet fuel and gasoline to the United States (U.S.).

Dangote further alleged that domestic refiners are forced to buy Nigerian crude at premiums of up to four dollars per barrel from the trading arms of international oil companies, placing them at a competitive disadvantage.

He called on the government to ensure crude oil taxes are assessed based on actual transaction values, warning that the current system allows under-declaration and revenue losses.

By Olamide Akintunde

Sahara Group Foundation, the social responsibility division of international energy conglomerate, Sahara Group, has launched the Sahara Community Impact Project (SCIP), an initiative designed to accelerate economic transformation across African communities. This bold step underscores Sahara’s unwavering commitment to fostering inclusive growth, sustainability, and innovation through strategic community partnerships.

Director, Sahara Group Foundation, Chidilim Menakaya, told media stakeholders that the initiative focuses on establishing community business hubs that leverage local economic niches to foster entrepreneurship and empower small businesses. “From agriculture, trade, craftsmanship, services, to emerging innovation, Sahara Group Foundation is looking to ultimately build specialised regional hubs with export potential by unlocking local talent and enterprise potential, “she said.

Menakaya said SCIP hubs will serve as engines for job creation, and long-term business sustainability, leveraging Sahara’s EXTRApreneurship model to empower individuals and reduce resource waste.

“At Sahara Group Foundation, we define impact as the ability to drive real, sustainable transformation in the lives of individuals and the communities we serve. SCIP embodies this vision by creating business hubs that not only empower local entrepreneurs but also propel economic resilience and innovation across Africa.”

Bethel Obioma, Head, Corporate Communications, Sahara Group said said SCIP would pilot in Nigeria and ultimately become the template for replicating similar interventions to kick-start “community-led economic transformation across Africa.”

“SCIP is more than a project; it is a commitment to building sustainable communities through capacity building, job creation, and strategic partnerships. By reducing resource waste and improving production efficiency, Sahara is laying the foundation for a future where communities can compete globally while preserving local identity.”

SCIP officially kicks off in January 2026. Interested communities or entrepreneurs can submit applications through Sahara Group Foundation’s official channels. These applications will be reviewed for alignment with SCIP’s parameters, and selected participants will undergo training and mentorship to strengthen their business models. SCIP is guided by an in-built assessment procedure that ensures sustainability and measurable impact.

The Community Business Hubs will provide shared processing and production facilities to reduce costs, improve product quality, offer training and capacity-building in entrepreneurship, financial literacy, branding and digital skills, and strengthen market access through collective visibility and structured value chains. The hubs will also enhance access to financing via partnerships with financial institutions.

Urging media partners, community leaders, entrepreneurs, and the public to join in amplifying the transformative initiative, David Ayinde, Project Lead Sahara Group foundation, said the community referral call will go live in Q1 2026. “Through sustained media reports and collaborative participation and support from all stakeholders, we envision SCIP becoming a beacon of sustainable development, empowering communities to grow from within”.

For more information about SCIP and the EXTRApreneurship initiatives of Sahara Group Foundation, please visit: www.saharagroupfoundation.org.

The International Air Transport Association (IATA) presented its outlook for Africa as part of the 2026 global industry forecast during today’s Africa media roundtable. While Africa is expected to outpace global traffic growth next year, the region continues to face some of the world’s toughest operating conditions—resulting in the smallest share of global industry profit and extremely thin margins.

Growth Ahead of Global Trends, but Profitability Remains Weak
IATA forecasts global air travel growth of 4.9% in 2026, slightly below the 5.2% expected in 2025. Africa is projected to exceed the global average with 6.0% growth in 2026. Cargo demand will grow 2.6% globally in 2026, while Africa’s growth will be slightly lower at 2%.

Despite above-average demand, the financial outlook remains challenging. Of the $41 billion in global net profit forecast for 2026 (3.9% margin), African carriers are expected to generate just $200 million in combined profits, representing a 1.3% margin—the lowest of all regions. This equates to $1.3 in profit per passenger, compared to a global average of $7.9.

“Demand for air travel in Africa is rising faster than in many other parts of the world, but profitability is not keeping pace. With margins of just 1.3%, African airlines are capturing only a fraction of aviation’s economic value. Addressing the barriers that constrain growth is essential to ensure the region’s traffic expansion also delivers financial strength,” said Kamil Al-Awadhi, IATA Regional Vice President, Africa and Middle East.

High Costs and Structural Barriers Constrain African Aviation
IATA emphasized that African airlines continue to operate in one of the world’s most difficult environments. Key constraints include:

Low GDP per capita: limiting demand and raising price sensitivity.
High operating costs compared to global average: Fuel prices: +17% higher, Taxes and charges: +12–15% higher, Air navigation charges: +10%, Maintenance, insurance, and capital costs: +6–10%.
Limited connectivity: Only 19% of intra-African routes have direct flights.
Blocked Funds: Africa Remains the Largest Contributor. Of the $1.2 billion in airline funds blocked globally as of October, Africa accounts for 79% ($954 million). Algeria is now the largest blocked-funds market.

Long-Term Potential Remains Strong
Despite current challenges, Africa’s aviation sector has substantial long-term opportunity. Over the next 20 years, Africa’s market is forecast to grow 4.1% annually, reaching 411 million passengers—the world’s third-fastest growth rate. Realizing this potential will require focused reforms to reduce barriers, improve affordability, and expand connectivity.

Recent progress on visa openness is an encouraging example:
Five countries now offer visa-free entry to all African nationals (Benin, The Gambia, Rwanda, Seychelles, Ghana).
28% of intra-African travel scenarios are now visa-free—up from 20% in 2016.
26 countries now offer e-visas, up from 17% in 2016.

These improvements demonstrate momentum toward greater mobility, trade, and regional integration.

Government Action Critical to Unlock Africa’s Aviation Potential
IATA called on African governments to work in collaboration with industry and pursue four priority actions:
Recognize aviation as a strategic economic enabler—not a revenue source—and avoid excessive taxes and charges.
Invest in efficient, scalable infrastructure without passing unsustainable costs to airlines and travelers.
Facilitate market access and competition by advancing the implementation of the Yamoussoukro Decision and SAATM.
Improve affordability and strengthen connectivity to unlock wider economic and social benefits.
“Africa’s aviation potential is immense. With the third-fastest growth rate in the world over the next two decades, the continent could serve more than 400 million passengers annually by 2044. We’re already seeing encouraging steps—like improved visa openness and e-visa adoption—that support greater mobility and integration. But turning potential into performance requires action. Governments must treat aviation as a catalyst for development, not a source of revenue. That means reducing costs, improving infrastructure, and advancing market liberalization through the Yamoussoukro Decision and SAATM. With the right policy support, aviation can be a powerful driver of economic transformation across Africa,” said Al-Awadhi.
Credit: IATA