The former Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, has referred to as for efficient and environment friendly regulation of Nigeria’s downstream petroleum sector amid ongoing reforms and altering international market dynamics.
Mr Ahmed, who resigned final 12 months after corruption and abuse-of-office allegations levelled towards him by Aliko Dangote, President and Chief Executive of the Dangote Group, made the decision whereas delivering a goodwill message at the celebration of 20 years of OTL Africa Downstream Energy Week in Lagos.
“My four decades of experience have reinforced one enduring lesson: that is, effective regulation cannot operate in isolation from the industry it serves. Good regulation rests on sound policy, credible data, professional competence, meaningful stakeholder consultation, transparency and a clear-eyed understanding of market realities,” he mentioned.
The look marks the primary time Mr Ahmed has spoken publicly at an trade occasion since leaving the regulatory company. He was additionally offered with an award of particular recognition for his position within the development and success of OTL Africa Energy Week at the gala.
Mr Dangote had accused the previous NMDPRA chief of financial sabotage, alleging that the regulator’s insurance policies undermined home refining in Nigeria.
He particularly accused the NMDPRA management of colluding with worldwide merchants and petroleum importers to frustrate native refining by persevering with to situation import licences for petroleum merchandise.
Mr Dangote additionally questioned Mr Ahmed’s sources of wealth, alleging that 4 of his youngsters attended secondary colleges in Switzerland at a mixed price of a number of million {dollars}. He argued that the expenditure raised questions on attainable conflicts of curiosity and the integrity of regulatory oversight within the downstream petroleum sector.
Mr Dangote additional alleged that Mr Ahmed spent greater than $5 million on his youngsters’s secondary schooling in Switzerland. He recognized the kids and their colleges as Faisal Farouk of Montreux School; Farouk Jr. of Aiglon College; Ashraf Farouk of Institut Le Rosey; and Farhana Farouk of La Garenne International School. According to Mr Dangote, every little one spent six years at their respective establishments.
In December final 12 months, Mr Dangote petitioned the Independent Corrupt Practices and Other Related Offences Commission (ICPC) by means of his lawyer, accusing Mr Ahmed of corruption, abuse of workplace and financial sabotage. Mr Ahmed has denied any wrongdoing.
The petition adopted a public dispute between each males over petroleum importation insurance policies applied beneath Mr Ahmed’s management at the NMDPRA.
Mr Dangote maintained that the insurance policies undermined Nigeria’s home refining capability, significantly the operations of his multi-billion-dollar refinery.
However, Mr Ahmed had argued that petroleum provide in Nigeria shouldn’t be monopolised and that import permits ought to stay accessible to different market gamers to advertise competitors.
Against the backdrop of the allegations and controversy, Mr Ahmed finally resigned from the NMDPRA.
Regulation and trade transformation
In his remarks at the OTL Africa occasion, Mr Ahmed argued that accountable operators should recognise that regulation, when correctly designed, persistently utilized, and pretty enforced, supplies the knowledge, confidence, and stability required for funding, competitors, and sustainable development.
“This is why platforms such as OTL are important. They help bridge the gap between regulatory objectives and commercial realities. They encourage constructive dialogue, promote mutual understanding, and create opportunities for stakeholders to move beyond competing interests towards common solutions,” he mentioned.
He mentioned he attended the event with the attitude of knowledgeable who has devoted greater than 4 a long time to petroleum regulation and trade growth, together with his expertise because the NMDPRA’s pioneer Chief Executive.
From that perspective, Mr Ahmed mentioned establishments and platforms that endure for 20 years accomplish that as a result of they tackle real wants, ship sustained worth and stay aware of altering calls for.
“OTL Africa has demonstrated these qualities. Your Excellencies, Ladies and Gentlemen, twenty years is more than a milestone; it is a testament to vision, resilience, consistency, and the power of partnership,” he mentioned.
Over the years, he famous, OTL has offered a platform for regulators, operators, traders, policymakers and different stakeholders to alternate concepts, look at rising challenges, share experiences and collectively search options to points confronting the trade.
He mentioned the significance of such a platform couldn’t be overstated, given the strategic position of the petroleum and vitality industries in financial growth.
According to him, the downstream sector impacts nearly each side of financial life, from transportation and manufacturing to energy technology, agriculture, commerce and family welfare. Its effectivity, stability and sustainability, he added, have direct implications for nationwide growth and folks’s high quality of life.
Africa’s downstream trade at a turning point
Mr Ahmed mentioned Africa’s downstream petroleum trade was at a defining point of transformation, requiring coordinated and decisive motion from governments and trade stakeholders.
He recognized vitality safety, infrastructure deficits, financing constraints, product high quality, supply-chain effectivity, market integration, environmental sustainability and the altering international vitality panorama as some of the important points confronting the trade.
While describing these challenges as important, he mentioned in addition they offered appreciable alternatives for Africa.
The continent, he argued, has the potential to develop a extra built-in, aggressive, environment friendly and resilient downstream vitality market.
Realising this potential, he mentioned, would require stronger regional cooperation, funding in storage and distribution infrastructure, trendy refining capability, acceptable know-how, clear market practices and regulatory frameworks that encourage funding whereas defending shoppers and the general public curiosity.
He additionally emphasised the necessity to spend money on human capital, noting that the trade’s future would rely not solely on infrastructure and capital but in addition on the competence, integrity and revolutionary capability of the professionals who function and regulate it.
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Mr Ahmed urged OTL to evolve past a convention and exhibition platform right into a stronger catalyst for sensible trade options, strategic partnerships, funding alternatives and measurable outcomes.
He mentioned discussions at the occasion ought to translate into motion, partnerships ought to become initiatives, and concepts generated ought to contribute to tangible enhancements throughout Africa’s vitality worth chain.
Institutional continuity and future of the trade
The former regulator additionally emphasised the significance of institutional continuity, calling for the preservation and switch of trade information and expertise to youthful professionals.
He mentioned the expertise collected over a long time should be intentionally shared to organize the following technology of regulators, entrepreneurs, engineers and vitality leaders to deal with rising challenges with recent strategic considering.
As OTL marked its twentieth anniversary, Mr Ahmed urged trade stakeholders to look past celebrating previous achievements and renew their dedication to the sector’s future.
He referred to as on regulators to strengthen their dedication to equity, transparency and predictable insurance policies; operators to pursue effectivity, innovation and accountable enterprise practices; traders to offer the capital and long-term dedication required for sustainable growth; and policymakers to enhance the enterprise surroundings.
“Above all, let us recognise that Africa’s energy future cannot be built by regulators alone, by operators alone, or by investors alone. It must be built through partnership, trust, and a shared determination to succeed,” he mentioned.
He expressed the hope that OTL’s subsequent 20 years would ship stronger partnerships, higher funding, smarter regulation, extra environment friendly markets and broader, extra dependable vitality entry for Africans.
“Let us not merely gather to discuss Africa’s energy future; let us unite—with purpose, discipline and urgency—to build it,” he mentioned.
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