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Africa’s downstream petroleum sector at defining point of transformation – NMDPRA’s ex-CEO

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The former Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, has called for effective and efficient regulation of Nigeria’s downstream petroleum sector amid ongoing reforms and changing global market dynamics.

Mr Ahmed, who resigned last year after corruption and abuse-of-office allegations levelled against him by Aliko Dangote, President and Chief Executive of the Dangote Group, made the call while 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 said.

The appearance marks the first time Mr Ahmed has spoken publicly at an industry event since leaving the regulatory agency. He was also presented with an award of special recognition for his role in the growth and success of OTL Africa Energy Week at the gala.

Mr Dangote had accused the former NMDPRA chief of economic sabotage, alleging that the regulator’s policies undermined domestic refining in Nigeria.

He specifically accused the NMDPRA leadership of colluding with international traders and petroleum importers to frustrate local refining by continuing to issue import licences for petroleum products.

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Mr Dangote also questioned Mr Ahmed’s sources of wealth, alleging that four of his children attended secondary schools in Switzerland at a combined cost of several million dollars. He argued that the expenditure raised questions about possible conflicts of interest and the integrity of regulatory oversight in the downstream petroleum sector.

Mr Dangote further alleged that Mr Ahmed spent more than $5 million on his children’s secondary education in Switzerland. He identified the children and their schools 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, each child spent six years at their respective institutions.

In December last year, Mr Dangote petitioned the Independent Corrupt Practices and Other Related Offences Commission (ICPC) through his lawyer, accusing Mr Ahmed of corruption, abuse of office and economic sabotage. Mr Ahmed has denied any wrongdoing.

The petition followed a public dispute between both men over petroleum importation policies implemented under Mr Ahmed’s leadership at the NMDPRA.

Mr Dangote maintained that the policies undermined Nigeria’s domestic refining capacity, particularly the operations of his multi-billion-dollar refinery.

However, Mr Ahmed had argued that petroleum supply in Nigeria should not be monopolised and that import permits should remain accessible to other market players to promote competition.

Against the backdrop of the allegations and controversy, Mr Ahmed eventually resigned from the NMDPRA.

Regulation and industry transformation

In his remarks at the OTL Africa event, Mr Ahmed argued that responsible operators must recognise that regulation, when properly designed, consistently applied, and fairly enforced, provides the certainty, confidence, and stability required for investment, competition, and sustainable growth.

“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 said.

He said he attended the occasion with the perspective of a professional who has devoted more than four decades to petroleum regulation and industry development, including his experience as the NMDPRA’s pioneer Chief Executive.

From that perspective, Mr Ahmed said institutions and platforms that endure for two decades do so because they address genuine needs, deliver sustained value and remain responsive to changing demands.

“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 said.

Over the years, he noted, OTL has provided a platform for regulators, operators, investors, policymakers and other stakeholders to exchange ideas, examine emerging challenges, share experiences and collectively seek solutions to issues confronting the industry.

He said the importance of such a platform could not be overstated, given the strategic role of the petroleum and energy industries in economic development.

According to him, the downstream sector affects virtually every aspect of economic life, from transportation and manufacturing to power generation, agriculture, trade and household welfare. Its efficiency, stability and sustainability, he added, have direct implications for national development and people’s quality of life.

Africa’s downstream industry at a turning point

Mr Ahmed said Africa’s downstream petroleum industry was at a defining point of transformation, requiring coordinated and decisive action from governments and industry stakeholders.

He identified energy security, infrastructure deficits, financing constraints, product quality, supply-chain efficiency, market integration, environmental sustainability and the changing global energy landscape as some of the critical issues confronting the industry.

While describing these challenges as significant, he said they also presented considerable opportunities for Africa.

The continent, he argued, has the potential to develop a more integrated, competitive, efficient and resilient downstream energy market.

Realising this potential, he said, would require stronger regional cooperation, investment in storage and distribution infrastructure, modern refining capacity, appropriate technology, transparent market practices and regulatory frameworks that encourage investment while protecting consumers and the public interest.

He also emphasised the need to invest in human capital, noting that the industry’s future would depend not only on infrastructure and capital but also on the competence, integrity and innovative capacity of the professionals who operate and regulate it.

ALSO READ: Nigerian petroleum agency introduces 6 regulations for midstream, downstream sectors

Mr Ahmed urged OTL to evolve beyond a conference and exhibition platform into a stronger catalyst for practical industry solutions, strategic partnerships, investment opportunities and measurable outcomes.

He said discussions at the event should translate into action, partnerships should develop into projects, and ideas generated should contribute to tangible improvements across Africa’s energy value chain.

Institutional continuity and future of the industry

The former regulator also emphasised the importance of institutional continuity, calling for the preservation and transfer of industry knowledge and experience to younger professionals.

He said the experience accumulated over decades must be deliberately shared to prepare the next generation of regulators, entrepreneurs, engineers and energy leaders to address emerging challenges with fresh strategic thinking.

As OTL marked its 20th anniversary, Mr Ahmed urged industry stakeholders to look beyond celebrating past achievements and renew their commitment to the sector’s future.

He called on regulators to strengthen their commitment to fairness, transparency and predictable policies; operators to pursue efficiency, innovation and responsible business practices; investors to provide the capital and long-term commitment required for sustainable development; and policymakers to improve the business environment.

“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 said.

He expressed the hope that OTL’s next 20 years would deliver stronger partnerships, greater investment, smarter regulation, more efficient markets and broader, more reliable energy access 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 said.


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NGX Group Named Africa’s Best Exchange at Euromoney Markets Awards 2026

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Nigerian Exchange Group Plc (NGX Group) has been named Africa’s Best Exchange at the Euromoney Markets Awards 2026, recognising its contribution to market infrastructure, digital innovation and capital formation.

Presented at the Mandarin Oriental Hyde Park, London, on Thursday, 15 October 2026, the award recognises achievements in market development during 2025 and comes amid robust growth in Nigeria’s equities market.

A key driver of wider primary-market participation has been NGX Invest, the Group’s electronic public-offering platform, which simplifies subscriptions to public offers and rights issues. The platform played a significant role in Nigeria’s banking sector recapitalisation exercise, facilitating more than ₦2.8 trillion in capital raising. By September 2026, its distribution network had grown to more than 180 channels spanning stockbrokers, banks and fintechs, with a WhatsApp subscription channel providing investors with an additional channel for subscribing to public offers.

Nigeria’s equities market recorded strong growth in 2025, with the NGX All-Share Index gaining 51.19 per cent, equities turnover rising 109.48 per cent to ₦5.96 trillion and market capitalisation reaching ₦99.38 trillion. This momentum has continued in 2026. As of 16 October, the All-Share Index had gained 59.07 per cent year-to-date. Equities turnover stood at ₦7.82 trillion, up 73.78 per cent from ₦4.50 trillion in the corresponding period of 2025, while market capitalisation reached ₦160.73 trillion.

Temi Popoola, Group Managing Director/Chief Executive Officer of NGX Group, said: “This award reflects our continued commitment to strengthening the infrastructure and technology that support capital formation and investment. We appreciate the trust and collaboration of our regulators, policymakers, issuers, investors, the stockbroking community and other market participants, whose support contributes to the development of our capital market. By widening digital access to investment opportunities, improving market efficiency and deepening connections with other African markets, we are working to make our capital market more accessible, resilient and competitive. We see this not simply as an achievement, but as encouragement to keep building a market that can mobilise capital for businesses and offer broader investment opportunities.”

Beyond digital innovation, NGX Group continues to advance sustainable finance through the NGX Net-Zero Programme (N-Zero), implemented in partnership with DEG Impulse gGmbH and Africa Foresight Group, with support through DEG Impulse’s develoPPP programme. The initiative helps Nigerian businesses strengthen climate readiness, establish science-based emissions-reduction targets and develop transition plans that can support access to climate-aligned finance. The programme has engaged more than 50 companies, with 19 onboarded as community members.

The Group’s broader market-development priorities also include improving post-trade efficiency and strengthening regional connectivity. Nigeria’s transition to T+1 settlement in June 2026 shortened the settlement cycle, while strategic engagements with other African exchanges are supporting efforts to deepen cross-border investment and strengthen regional market linkages.

The post NGX Group Named Africa’s Best Exchange at Euromoney Markets Awards 2026 appeared first on Business Today NG.

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CIBN urges banks to increase lending to MSMEs, honours 755 professionals

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The President Chartered Institute of Bankers of Nigeria (CIBN), Dele Alabi, has urged Nigerian banks to increase lending to micro, small and medium-sized enterprises (MSMEs), in order to generate higher returns for banks after the industry recapitalisation.

Mr Alabi, who is also the CIBN’s Chairman of Council, stated this at the 2026 Fellowship Investiture of CIBN, held in Victoria Island, Lagos, on Saturday. The theme of the event was “Bank Recapitalisation: Leveraging New Bank Capital for Nigeria’s Industrial Transformation.”

Honoraries at the 2026 Fellowship Investiture of CIBN, in Victoria Island, Lagos, on Saturday.
Honoraries at the 2026 Fellowship Investiture of CIBN, in Victoria Island, Lagos, on Saturday.

He said the success of the banking sector recapitalisation exercise, which ended on 31 March, would depend on how effectively the new capital is deployed to support productive sectors of the economy.

Mr Alabi said banks needed to look beyond large corporations and expand financing to micro, small and medium-sized enterprises (MSMEs), which he described as critical to Nigeria’s economic growth and employment.

He said lending to MSMEs could be both secured and profitable if banks developed appropriate structures and infrastructure to manage the associated risks.

“Banks no longer have the luxury of focusing only on the top-tier sectors of the economy, on the Mobiles, on the Unilevers, on the Shells,” he said.

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The CIBN boss added that the institute was planning its first MSME forum for 1 December, to advance practical solutions for improving access to finance and supporting enterprise growth.

Mr Alabi cited estimates that MSMEs account for about 46 per cent of Nigeria’s gross domestic product, constitute 96 per cent of businesses and generate 86 per cent of employment.

He also said the institute was considering the establishment of MSME hubs across states, drawing on models implemented in countries including China, India and the United Kingdom.

755 CIBN honorees

The CIBN President said the institute honoured 755 banking professionals for their contributions to the banking industry and Nigeria’s economic development.

The honourees comprised 18 honorary fellows, 460 elected fellows and 277 honorary senior members.

Among the distinguished honorary fellows honored at three events Samuel Egube, Deputy Chief of Staff, Lagos State, Folorunsho Alakija, Vice Chairman of Famfa Oil Limited, Tokunbo Talabi, Secretary to the Ogun State Government; and Olubunmi Kuku, Managing Director/Chief Executive of the Federal Airports Authority of Nigeria.

Mr Alabi said their achievements, leadership and dedication had helped advance the banking profession and contributed to the country’s economic growth.

He also disclosed that the institute’s banking examinations were now conducted in 13 African countries: Sierra Leone, The Gambia, Liberia, Congo, Ghana, Botswana, Cameroon, Namibia, Zambia, Rwanda, Mali, Mozambique and Kenya.

He said Sierra Leone had the highest number of chartered bankers among the 13 countries, describing the institute’s growing international reach as evidence of its expanding relevance across Africa.

Affordable long-term financing

At the event, the Governor of Lagos State, Babajide Sanwo-Olu, said the banking sector’s recapitalisation should strengthen lenders’ capacity to withstand economic pressures and finance larger transactions.

The Governor of Lagos State, Babajide Sanwo-Olu at the 2026 Fellowship Investiture of CIBN, in Victoria Island, Lagos, on Saturday.
The Governor of Lagos State, Babajide Sanwo-Olu at the 2026 Fellowship Investiture of CIBN, in Victoria Island, Lagos, on Saturday.

He said the real measure of success would be the extent to which the additional capital supported productive businesses, industrial expansion and economic opportunities for Nigerians.

“One of the greatest challenges facing Nigerian businesses remains access to affordable, long-term financing. We’ve been hearing this for 20, 25 years. And so we need to do something about it,” he said.

Mr Sanwo-Olu said manufacturers needed financing to acquire machinery, expand production and compete internationally, while agricultural businesses required capital to develop storage, processing and distribution capacity.

He also highlighted opportunities in infrastructure and electricity, noting that Lagos State’s electricity law could attract investment into the power sector and support manufacturing, logistics and trade.

The governor said the Lagos State Employment Trust Fund had supported more than 40,000 small businesses through grants and single-digit loans.

According to him, the initiative had also helped create between 200,000 and 250,000 jobs across the state.

Mr Sanwo-Olu urged banks, government and the private sector to move beyond increasing the availability of capital and focus on ensuring that the funds generated meaningful economic activity.

“We must move from simply having more capital available to making this capital work for our economy,” he said.

Credits’ concerns

The Chief Executive Officer of the Nigerian Economic Summit Group (NESG), Tayo Aduloju, also raised concerns over a one-third decline in bank credit to manufacturers since December 2024, urging lenders to channel more of their capital into productive sectors of the Nigerian economy.

The Chief Executive Officer of the Nigerian Economic Summit Group (NESG), Tayo Aduloju at the 2026 Fellowship Investiture of CIBN, in Victoria Island, Lagos, on Saturday.
The Chief Executive Officer of the Nigerian Economic Summit Group (NESG), Tayo Aduloju at the 2026 Fellowship Investiture of CIBN, in Victoria Island, Lagos, on Saturday.

Mr Aduloju said credit to manufacturers had fallen from N8.5 trillion in December 2024 to N5.6 trillion, despite the successful completion of the banking sector recapitalisation exercise.

According to the NESG chief, the increase in banks’ capital had not translated into the scale of financing needed to support industrial growth, with lending still concentrated in sectors such as oil and gas, finance and insurance.

ALSO READ: CIBN urges banks to deploy fresh capital to MSMEs as Nigeria targets $1 trillion economy

He said the two sectors accounted for about 46 per cent of bank credit, while manufacturing received only 8.7 per cent.

“Trade has overtaken manufacturing. So, ladies and gentlemen, we are financing import and distribution of goods more readily than their production in Nigeria,” he said.

Mr Aduloju said the cost of borrowing, liquidity constraints, lending risks and the short duration of available financing were among the major obstacles preventing businesses from accessing credit.

He noted that lending rates ranged from 19 per cent for prime borrowers to 32.6 per cent for other borrowers, while treasury bills offered returns of about 15.5 per cent without credit risk.

He also expressed concern over the growth in government borrowing, saying credit to the government increased by 63 per cent in the year to September.

“When the sovereign borrows at this pace, it’s not a competition with business. It’s no competition. Government will win,” he said.

Mr Aduloju argued that banks would need to work with government and regulators to reduce the risks associated with lending to productive sectors, particularly manufacturing, agriculture and small businesses.

He said Nigeria needed better-prepared investment projects, reliable infrastructure, clear regulatory frameworks and stronger credit guarantees to attract long-term financing.

He also urged the government to clean up the national asset register, saying the absence of properly documented and investment-ready projects was preventing financial institutions from financing some opportunities.


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