By Ayo Kehinde
As continued begin to mount over the ongoing impasse between the Dangote Petroleum Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), some stakeholders have raised the alarm that the dispute goes beyond a commercial disagreement and poses serious implications for Nigeria’s national development aspirations.
Olisa Agbakoba Legal (OAL) through its Energy and Natural Resource Practice Group, said the standoff strikes at the core of Nigeria’s petroleum governance framework and raises fundamental questions about the country’s ability to exercise sovereignty over its hydrocarbon resources.
The statement, signed on Friday by Collins Okeke, Partner and Head of Government Affairs, and Dr Olisa Agbakoba, SAN, Senior Partner, described the situation as paradoxical, noting that despite having a $20 billion refinery (one of the largest in the world), Nigeria continues to rely heavily on imported petroleum products.
According to the firm, Dangote Refinery represents the type of transformative local investment Nigeria has long needed, but is now facing regulatory obstacles that undermine its capacity to operate optimally, contrary to the objective of building domestic refining capacity.
OAL argued that regulatory actions that frustrate local refining investments undermine broader national objectives, including poverty reduction, job creation, industrial growth and economic self-reliance.
The statement contrasted Nigeria’s current petroleum governance approach, described as a “Contract Oil” model focused largely on crude extraction and export, with a “Development Oil” model adopted by countries such as Saudi Arabia, where petroleum resources are strategically deployed to drive industrialisation, value addition and national transformation.
It noted that while Saudi Arabia has built extensive downstream infrastructure and maintains strong control over its petroleum value chain, Nigeria, despite being Africa’s largest oil producer, still lacks comparable downstream capacity and indigenous maritime assets.
The firm further cited Section 44(3) of the 1999 Constitution, which vests ownership and management of Nigeria’s oil and gas resources in the Federal Government for the welfare and security of citizens. It argued that regulatory practices that hinder domestic refining while allowing continued importation of petroleum products run contrary to this constitutional mandate.
According to OAL, the difficulty faced by a local refinery in securing crude feedstock, alongside the continued issuance of import licences, reflects a deeper governance challenge rather than an isolated commercial dispute.
The firm stressed that the issue transcends Dangote Refinery, warning that it represents a critical choice between sustaining decades of extractive dependency or embracing a development-focused oil governance framework aligned with Nigeria’s constitutional obligations and long-term national interest.
OAL urged all stakeholders to urgently engage and work toward a resolution that supports local capacity development, protects national interest and advances Nigeria’s economic sovereignty.
