Business & Economy

Dangote Refinery Counters Marketers’ Claims, Says Facility Produces More Than Enough Fuel for Nigeria

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The Dangote Petroleum Refinery has dismissed assertions by oil marketers that it lacks the capacity to meet Nigeria’s domestic fuel needs, insisting it produces more than enough to serve the local market and still export surplus to other countries.

Top officials of the $20 billion refinery, speaking on condition of anonymity, refuted claims made by the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Olufemi Adewole, who argued that the refinery was falling short of meeting Nigeria’s fuel demand, leaving private depot owners to bridge the supply gap.

Adewole had stated that despite the refinery’s 650,000 barrels-per-day capacity, it could not handle current consumption levels, while accusing the company of attempting to monopolize the downstream sector through pricing tactics that burden independent marketers with losses.

However, Dangote officials challenged these claims, stating that the refinery supplies millions of litres of fuel daily and maintains reserves that far exceed local consumption needs. “We produce more than enough fuel for the local market and still export,” one official said, adding that Nigeria’s consumption figures have been inflated in the past to justify dubious subsidy claims.

During a recent facility tour, Aliko Dangote, founder of the refinery, emphasized that Nigeria consumes just 40% of the refinery’s daily output, with the remaining 60% designated for export, particularly to other African nations. “We can meet 100% of Nigeria’s needs. Our daily production includes 57 million litres of petrol, 20 million litres of jet fuel, and 37 million litres of diesel,” he stated.

Data from February showed the refinery delivered 33 million litres of petrol, 10 million litres of diesel, and 3 million litres of aviation fuel daily. The refinery has the capacity to store up to 4.7 billion litres of crude and refined products.

The refinery also hit back at claims that it is undermining marketers through post-sale price cuts. Officials accused certain importers of prioritizing profit over public welfare and engaging in round-tripping practices during the fuel subsidy era.

“Some of these people don’t care about Nigerians; they’re only concerned with profit. Many made billions from shady deals under the subsidy regime,” a Dangote Group representative said.

They also questioned the accuracy of current national consumption data, urging industry regulators and associations like DAPPMAN, IPMAN, and PETROAN to provide concrete data before discrediting the refinery’s capacity.

This development comes amid a sharp drop in petrol imports—from 44.6 million litres per day in August 2024 to 14.7 million litres by April 2025—as reported by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), signaling a growing reliance on local production.

Despite the pushback from some marketers, Dangote remains confident. “We’re fighting, and I’m sure we’ll win,” he said, reaffirming his commitment to challenging entrenched interests that profited under the old fuel import regime.

Mike Ojo

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