Nigeria's petroleum sector was thrown into new uncertainty on Wednesday with the resignation of Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and his counterpart at the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, amid a deepening controversy sparked by allegations and a petition filed by the President of the Dangote Group, Aliko Dangote.
On Wednesday, the Presidency announced the resignations of the two regulators, which are largely viewed as the result of an intensifying disagreement between the Dangote refinery and the NMDPRA over fuel importation, pricing, and downstream regulatory monitoring.
The upheaval came just days after Dangote publicly accused Ahmed of economic sabotage and asked the Independent Corrupt Practices Commission to look into what he described as questionable personal wealth, including allegations that the regulator paid about $5 million for his four children's secondary education in Switzerland.
On Sunday, Dangote launched a frontal attack on Ahmed, challenging his source of wealth and how he could pay such a large sum for his children's education. The charges intensified on Tuesday, when Dangote formally wrote to the ICPC, seeking a thorough probe into the NMDPRA boss.
In reaction to the petition and the uproar it caused, Ahmed was summoned to the Presidential Villa, and his resignation was announced. Komolafe, who was not directly involved in the current disagreement, was also affected, according to insiders, as the Presidency chose to change leadership at both regulatory organizations at the same time.
Bayi Onanuga, the President's Special Adviser on Information and Strategy, confirmed the development by announcing the resignation of the two chief executives and the nomination of their replacements. According to Onanuga, President Tinubu has urged the Senate to accept the appointments of new CEOs for both agencies. The petitions came after the resignations of Engr Farouk Ahmed of the NMDPRA and Gbenga Komolafe of the NUPRC. Former President Buhari appointed both persons in 2021 to oversee the two regulatory agencies established by the Petroleum Industry Act, he stated.
To fill these positions, President Tinubu has written to the Senate requesting speedy confirmation of Oritsemeyiwa Amanorisewo Eyesan as CEO of NUPRC and Engr Saidu Aliyu Mohammed as CEO of NMDPRA," Onanuga said.
He described the nominees as experienced individuals in the oil and gas industry.
Eyesan, an Economics graduate from the University of Benin, has worked with the NNPC and its subsidiaries for approximately 33 years. She departed as Executive Vice President, Upstream (2023-2024), after serving as Group General Manager, Corporate Planning and Strategy at NNPC from 2019 to 2023.
Engineer Saidu Aliyu Mohammed, born in Gombe in 1957, earned a Bachelor of Chemical Engineering degree from Ahmadu Bello University in 1981. He was named Seplat Energy's independent non-executive director today (Wednesday).
"His prior roles include Managing Director of Kaduna Refining and Petrochemical Company and Nigerian Gas Company, as well as Chair of the boards of West African Gas Pipeline Company, Nigeria LNG subsidiaries, and NNPC Retail, says Onanuga.
Tension Mounts Among Marketers
The resignation of the regulators has heightened worry in the downstream oil sector, with marketers warning that the deepening crisis could exacerbate business failures, particularly after the Dangote refinery's drastic price cuts.
A major marketer acquainted with the circumstances, who talked with one of our correspondents on the condition of anonymity due to the delicacy of the situation, said the NMDPRA chief was invited to the Presidential Villa on Wednesday morning.
"On Wednesday morning, the NMDPRA boss was invited to the Presidential Villa, and I believe he was requested to quit at that meeting. But, while we do not promote corruption, I must point out that the only complaint leveled against Farouk was of suspected payment for his children.
It is not against the law to give licences for petroleum imports, and Dangote cannot use this against him. This issue, combined with the resignations of the regulators, has inevitably created stress in the downstream oil industry. It does not send an appropriate signal to operators. "Dealers will be nervous, especially when dealing with Dangote," the marketer said.
He also stated that the development had heightened fears of an impending collapse of enterprises in the downstream section. "Since Dangote reduced the gantry price of petrol to N699 per litre, we've lost more than 90% of marketers who load products from our depots.
We only serve our stations with a few tanks. In reality, we have two petrol vessels that will arrive in Nigeria in a few weeks, and the products on board have been fully paid for. And you cannot sell the product at Dangote's price and make a profit.
So it is the worst sort of competition to crash prices to that level and incur losses in the hundreds of billions of naira merely to eliminate your competitors. This is shocking. When you hear the resignations today, tell me why you won't be nervous. Of course, we need to be. There is tension," he explained. more details
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