Allegations of corruption against Nigeria’s downstream petroleum regulator have ignited a wider battle over power, pricing and regulatory independence, as business groups, lawyers and civil society close ranks around the NMDPRA, warning that the dispute threatens investor confidence, market stability and the fragile reforms of the oil sector.

Chairman of Dangote Group, Aliko Dangote, yesterday, petitioned the Independent Corrupt Practices and Other Related Offences Commission (ICPC) over alleged corruption and financial impropriety involving the Managing Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed.

The petition, dated December 16, 2025, was submitted through Dangote’s lawyer, Ogwu James Onoja, SAN, urging the anti-graft agency to arrest, investigate and prosecute the NMDPRA chief for allegedly living far beyond his lawful means as a public officer.

According to the petition addressed to the ICPC Chairman, Musa Adamu Aliyu, SAN, Dangote accused Ahmed of spending more than $7 million on the education of his four children in Switzerland, allegedly paid upfront over a six-year period.

The petition reportedly detailed the names of the four children, the schools they attended and the specific sums paid for each, with a request that the Commission verify the claims.

Dangote further alleged that the NMDPRA boss abused his office by using the authority of the regulatory body to embezzle and divert public funds for personal gain and private interests, actions he claimed had triggered public protests and widespread outrage.

He argued that Ahmed had spent his entire adult working life in Nigeria’s public sector and that his legitimate earnings could not reasonably explain the alleged $7 million expenditure on his children’s foreign education.

“It is without doubt that the above facts in relation to abuse of office, breach of the Code of Conduct for public officers, corrupt enrichment and embezzlement amount to gross acts of corruption, which your Commission is statutorily empowered under Section 19 of the ICPC Act to investigate and prosecute,” the petition stated.

Dangote noted that offences under the ICPC Act attract a five-year jail term without the option of a fine upon conviction. He urged the Commission to act decisively, stressing that the matter was already in the public domain and required urgent attention to protect public trust and the integrity of President Bola Ahmed Tinubu’s administration. He also pledged to provide additional evidence to support his allegations of corrupt enrichment, abuse of office and impunity against the NMDPRA chief.

Meanwhile, the ICPC has confirmed receipt of the petition. In a statement yesterday, the Commission’s spokesperson, John Okor Odey, said the petition was formally submitted by Dangote through his lawyer and was directed against the Chief Executive Officer of the NMDPRA, Farouk Ahmed.

Odey assured that the petition would be thoroughly investigated in line with the Commission’s statutory mandate.

PETROAN warns of supply risks, investor jitters amid downstream trade war

BEYOND the legal dimensions of the petition, the dispute has spilled into the broader downstream petroleum market, fuelling tensions among operators and drawing concerns about pricing stability, competition and regulatory independence.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) called on President Bola Tinubu to urgently intervene in what it described as a growing cold trade war in the sector, warning that the unresolved conflict could destabilise supply, weaken investor confidence and expose the market to unhealthy price manipulation.

The association, in a statement signed by its National Public Relations Officer, Joseph Obele, raised concerns over the escalating dispute between petroleum product importers and the management of Dangote Refinery, noting that the situation has intensified tensions across the downstream value chain.

National President, Billy Gillis-Harry, made the call following what the association described as the current price war in the sector, stressing that continued public confrontation among major industry players poses risks to market stability and Nigeria’s broader economic interests.

PETROAN expressed particular concern over allegations and verbal attacks directed at the leadership of the NMDPRA by the President of Dangote Group, Aliko Dangote, cautioning that such actions are capable of discouraging potential foreign investors and eroding confidence in Nigeria’s regulatory institutions.

At its Emergency Ordinary National General Meeting, PETROAN said it passed a vote of confidence on the leadership of the NMDPRA under its Chief Executive Officer, Farouk Ahmed. According to the association, the decision followed what it described as innovative reforms, strategic governance and regulatory clarity introduced by the authority in the downstream petroleum sector.

PETROAN stated that these regulatory interventions have significantly improved operational efficiency, transparency and healthy competition within the industry, adding that the current framework has enhanced market discipline, encouraged fair play among operators and created a more stable and competitive downstream environment that ultimately benefits consumers and the national economy.

“PETROAN strongly condemns the announcement or pronouncement of petroleum product prices by any individual, corporate body or agency. This, PETROAN emphasises, is contrary to the provisions of the Petroleum Industry Act (PIA) 2021, which clearly directs that petroleum product prices in the downstream sector should be determined by market forces and competitive commercial engagement. Section 205(1) of the PIA specifically states that wholesale and retail prices of petroleum products shall be based on unrestricted free market conditions, subject only to limited regulatory oversight and protection against monopolistic practices,” it stated.

PETROAN warned that if these disputes and the ongoing cold war persist without timely resolution, the consequences could include supply chain disruptions, artificial scarcity of petroleum products, job losses, weakened investor confidence, regulatory instability and unhealthy price manipulation. It further cautioned that prolonged conflict among key stakeholders could expose the sector to risks of market monopolisation, reduced competition and higher operational uncertainty for retail outlet owners, with increased pressure on consumers through unstable pricing regimes and broader adverse implications for the economy.

“PETROAN believes that the current dirty price war is already causing collateral damage to all parties involved. Most of the aggressive price crashes appear designed to frustrate importers and are often executed below cost. Consequently, all parties in the price war may be operating at a loss in a bid to gain market dominance, a development PETROAN considers unsustainable and harmful to the long-term stability of the downstream sector,” Gillis-Harry added.

Gillis-Harry, on behalf of the association, called on President Bola Tinubu to intervene decisively in resolving both existing and emerging stakeholder disputes in the downstream sector, promote dialogue over confrontation, uphold the provisions of the PIA, ensure fair competition and restore stability and confidence in Nigeria’s petroleum downstream industry.

Coalition of 40 lawyers dismisses corruption allegations against NMDPRA chief

ALSO, a coalition of 40 lawyers, operating under the aegis of Lawyers in Defence of Democracy and Anti-Corruption, has condemned what it described as frivolous and unfounded corruption allegations against Farouk Ahmed.

Addressing a press conference in Abuja yesterday, the lawyers warned against what they termed a media trial aimed at portraying Ahmed as guilty without due process, arguing that such actions undermine democracy, the rule of law and investor confidence in Nigeria’s oil and gas sector.

The press conference was jointly addressed, with a statement signed by Emeka Okafor, National Coordinator, and Mohammed Bello, Secretary, on behalf of the coalition.

Speaking for the group, Okafor described allegations that Ahmed received millions of dollars and sponsored his children’s education in Switzerland as reckless fabrications unsupported by facts or evidence.

The lawyers argued that monopoly was not the best form of business and insisted that the actions of the NMDPRA leadership were in the national interest, not targeted at any individual or company in the petroleum industry.

“We find these allegations not only frivolous and unfounded but also dangerous to the stability and development of Nigeria’s midstream and downstream petroleum sector,” Okafor said. “This is a clear attempt at a media conviction of a public officer who has not been investigated, charged or found guilty by any competent authority.”

The group cited Section 36(1) of the 1999 Constitution (as amended), which guarantees the right to fair hearing, stressing that no citizen can be declared guilty based on public accusations or media narratives.

“The Constitution is clear. Every person is presumed innocent until proven guilty by a court of competent jurisdiction. What we are witnessing is a blatant violation of this constitutional provision,” Okafor added.

The lawyers faulted the accusers for failing to pursue their claims through appropriate legal and institutional channels, noting that grievances should be addressed through petitions and investigations rather than public sensationalism.

“If indeed there were genuine concerns, the proper course of action would have been to submit a petition to relevant anti-corruption agencies for investigation, not a trial by media,” Bello said.

The coalition warned that such actions could discourage local and foreign investors at a time when President Bola Ahmed Tinubu’s Renewed Hope Agenda is focused on attracting investment and revitalising the economy.

They said regulatory reforms under Ahmed’s leadership had liberalised the downstream petroleum sector, attracted new investors and dismantled monopolistic tendencies.

The group reaffirmed its opposition to monopoly in the petroleum industry, stating that the regulatory stance of the NMDPRA has promoted competition, fairness and the national interest.

“As a group, we state unequivocally that the Chief Executive Officer of the NMDPRA, Farouk Ahmed, has remained committed to his statutory responsibilities and clean of corruption based on our independent findings,” the statement said.

CSOs defend NMDPRA, dismiss claims of regulatory compromise

SIMILARLY, a coalition of civil society organisations (CSOs) has risen in defence of the NMDPRA, rejecting claims that the regulator is undermining regulatory independence in the petroleum sector.

In a statement signed by the National Coordinator of the Centre for Fiscal Transparency and Public Integrity (CFTPI), Ibrahim Bello, the CSOs absolved the Chief Executive Officer of the NMDPRA, Farouk Ahmed, of allegations of corruption and claims that he was living beyond his means.

The coalition described the accusations as a calculated attempt to discredit the leadership of the NMDPRA over its firm stance against what it termed unfair practices in Nigeria’s midstream and downstream petroleum sector.

According to the statement, the leadership of the NMDPRA under Ahmed has remained faithful to the provisions of the Petroleum Industry Act (PIA), strengthening regulatory transparency and expanding opportunities for increased investor participation in the sector.

The CSOs argued that sustained public attacks on the regulator stem from its refusal to compromise regulatory standards or permit any single company to dominate the downstream petroleum market.

“We believe these allegations are aimed at intimidating the regulator because of its insistence on fairness, competition and value for Nigerians,” the coalition said.

The group said its findings showed no evidence that Ahmed had engaged in corrupt practices, adding that his leadership had focused on repositioning the downstream sector to promote efficiency, fairness and healthy competition.

While reaffirming its commitment to transparency and accountability, the coalition urged individuals and corporate organisations with genuine grievances to pursue redress through established legal and regulatory channels rather than engaging in media trials. (The Nation)

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