- Seeks President Tinubu’s urgent intervention
BY VICTOR BUORO – Amid scathing allegations made by President of Dangote Group, Aliko Dangote against Farouk Ahmed, Chief Executive Officer (CEO), of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), one of the stakeholders in the nation’s oil sector, he Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has thrown its weight behind the Authority’s leadership.
In what seems as saying the NMDPRA’s boss has done no wrong, PETROAN cautioned that the allegations can deter potential foreign investors from coming to Nigeria.
Consequently, the Association passed a vote of confidence on the leadership of the NMDPRA under the leadership of Ahmed at its emergency ordinary national general meeting held on Monday.
In its view, President Bola Tinubu should urgently intervene to resolve the ongoing dispute in the downstream petroleum sector, warning that current development could erode confidence in Nigeria’s regulatory institutions.
A statement issued on Tuesday, and signed by the National President of PETROAN, Billy Gillis-Harry urged the president to promote dialogue over confrontation, uphold the provisions of the Petroleum Industry Act (PIA), ensure fair competition, and restore stability and confidence in the downstream industry.
He said ongoing allegations and verbal attacks “directed at the leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by Aliko Dangote are capable of discouraging potential foreign investors and eroding confidence in Nigeria’s regulatory institutions”.
PETROAN’s Vote Of Confidence On NMDPRA Leadership
Rising from its emergency general meeting, PETROAN explained that the decision to passed a vote of confidence on NMDPRA’s leadership was based on ongoing reforms, strategic governance, and regulatory clarity introduced by the Authority in the Nigerian downstream petroleum sector.
The statement said: “Of serious concern are the negative public statements made against Nigeria’s national refineries, suggesting that they are unattractive for investment. PETROAN maintains that sound business ethics discourage running down another entity’s business, irrespective of competition.
“PETROAN strongly condemns the announcement or pronouncement of petroleum product prices by any individual, corporate body, or agency.”
Furthermore, the Association said Nigeria’s four refineries are viable for acquisition and that the downstream petroleum sector remains business-friendly and attractive to both local and foreign investors.
It also said the unresolved issues “involving NUPENG and PENGASSAN in relation to Dangote refinery remain pending and continue to compound the crisis in the downstream sector”.
For PETROAN, failure to promptly resolve the ongoing disputes and tensions could lead to supply chain disruptions, artificial fuel shortages, job losses, declining investor confidence, regulatory uncertainty, and unhealthy price manipulation in the sector.
Additionally, the body said only constructive negotiations and fair commercial engagement are key to attracting importers to local refineries, insisting that, “Such engagement must not be driven by compelling or brutal price-ambushing strategies, which undermine market confidence and distort fair competition.”
The statement further read: “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.”
Going forward, PETROAN said it has become of urgent importance that the Nigerian National Petroleum Company Limited (NNPCL) hasten the process of engaging credible private-sector partners for the rehabilitation, management, or co-ownership of the national refineries.
Reports had emerged on Monday where Alhaji Dangote alleged that Farouk Ahmed, NMDPRA’s chief executive officer (CEO), “paid $5 million” to a Swiss secondary school for his children’s education, describing the act as “economic sabotage and corruption”.
He further released details of his allegations, in the newspaper advert, where he listed the four children as Faisal Farouk, Farouk Jr., Ashraf Farouk, and Farhana Farouk.
