President Bola Tinubu has approved the removal of Saidu Mohammed as the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Rabiu Umar, a former executive of the Dangote Group, has been appointed as his replacement, pending Senate confirmation.
NMDPRA is the agency tasked with regulating technical, operational, and commercial activities within Nigeria’s midstream and downstream petroleum sectors. Mr. Mohammed's tenure lasted less than four months.
Mr. Umar brings a wealth of experience, having served as Group Sales and Marketing Director at Dangote Cement Plc. He possesses over 20 years of experience in senior and executive roles across the downstream petroleum and cement manufacturing industries.
His career began at Oando Plc, where he progressed through various management positions in the marketing business and led a sales and marketing transformation plan. Mr. Umar holds a degree in Accounting from Bayero University, Kano, is an alumnus of Harvard Business School, and is a member of the Institute of Directors.
The appointment follows a period of significant friction between the former NMDPRA leadership under Saidu Mohammed and Aliko Dangote, President and Chief Executive Officer of Dangote Group. This friction stemmed from disagreements over the issuance of petroleum import licenses, particularly in light of the commencement of operations at the Dangote Refinery in 2024.
Mr. Dangote had advocated for increased reliance on the Dangote Refinery for domestic fuel supply, while the previous NMDPRA leadership under Farouk Ahmed (whom Mohammed replaced) expressed concerns about potential monopolistic practices and threats to energy security. Mr. Ahmed eventually resigned amidst these controversies.
While the presidency has not provided explicit reasons for Mr. Mohammed's removal, his exit occurs amidst pressures in the downstream sector, including rising aviation fuel costs that have prompted warnings from airlines.
The Presidency stated that the decision was made in accordance with the Petroleum Industry Act (PIA) 2021, aiming to enhance regulatory effectiveness in line with the administration’s Renewed Hope Agenda. President Tinubu highlighted Mr. Umar's extensive experience, describing him as a seasoned executive with a proven track record in strategic leadership and project delivery.
Mr. Umar’s appointment is significant as the federal government intensifies reforms in the oil and gas sector. The Dangote Refinery's role is increasingly crucial amidst global oil market volatility and regional tensions. Analysts suggest that Mr. Umar's background within the Dangote Group may signal a closer alignment of regulatory leadership with the evolving dynamics of Nigeria's downstream market, potentially supporting the substantial investment in the Dangote Refinery.
