Human rights activist and former President of the Nigerian Bar Association (NBA), Mr. Olisa Agbakoba (SAN), has described the ongoing face-off between the Founder and President of the Dangote Group, Aliko Dangote, and the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, as a fundamental failure of constitutional responsibility.
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Agbakoba made the assertion in a statement released on Wednesday.
The statement, titled “Beyond Commercial Disagreement to Questions of Economic Sovereignty,” said the dispute transcends a mere commercial disagreement and strikes at the heart of Nigeria’s governance and control over its hydrocarbon resources.
“We have followed with interest the ongoing impasse between Dangote Petroleum Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The issue at stake goes beyond commercial disagreement. It strikes at the heart of a fundamental development question: the sovereignty of Nigeria’s governance process over its hydrocarbon resources,” the statement read in part.
Agbakoba described as paradoxical the fact that Nigeria hosts a $20 billion refinery—one of the largest in the world—yet continues to import petroleum products.
“A private investor has built the refining capacity our nation desperately needs, but faces systematic undermining from the very regulatory authority whose mandate is to support such investments,” he said.
According to him, when government policies frustrate transformative local investments, serious questions arise as to whether Nigeria’s economic strategy truly serves the national interest or merely perpetuates dependency.
He stressed that the issues involved—local refining, poverty alleviation, employment generation, and industrial development—go far beyond a commercial dispute and touch on how Nigeria governs its most valuable natural resource.
Agbakoba explained that Nigeria currently operates a “Contract Oil” system, where petroleum is treated mainly as a commodity for extraction and export, with value addition and job creation outsourced to foreign entities.
“We export raw crude only to import refined products at premium prices, perpetuating dependency rather than fostering development,” he noted.
He contrasted this with Saudi Arabia’s “Development Oil” approach, where petroleum resources are deployed for comprehensive national transformation, including strong local refining capacity and full control of the petroleum value chain.
Citing Section 44(3) of the 1999 Constitution, Agbakoba noted that oil and gas resources are vested in the Federal Government to be managed for the welfare and security of Nigerians.
“When regulatory actions frustrate investments that create local capacity, generate employment, and reduce import dependency, they violate constitutional obligations,” he said.
He described the situation in which a domestic refinery struggles to secure crude feedstock while import licences continue to be issued as a clear failure of constitutional responsibility.
Agbakoba stressed that the dispute is not about one refinery or one company, but about whether Nigeria will continue with a failed extractive model or embrace a development-focused approach that aligns resource management with national growth.
“This is a defining moment between sovereignty and dependency, development and extractive stagnation, constitutional compliance and commercial expediency,” he said.
He urged all stakeholders to work towards a resolution that serves Nigeria’s constitutional obligations, development imperatives, and long-term national interest.
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