Dangote Refinery officials state they have sufficient fuel for Nigeria and export, contradicting claims by oil marketers about their capacity
[dropcap]T[/dropcap]he Dangote Petroleum Refinery has strongly refuted claims made by oil marketers suggesting that the facility lacks the capacity to meet Nigeria’s domestic fuel demand.
Also read: Dangote, NNPC pledge collaboration for Nigeria’s energy security
Officials from the refinery have assured that they possess enough refined products to satisfy local consumption needs and still have surplus for export to other countries.
This rebuttal comes in the wake of statements by the refinery’s founder, Aliko Dangote, alleging that certain major marketers and traders are actively working against the success of the $20 billion refinery.
In response, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Olufemi Adewole, stated that marketers are simply trying to sustain their businesses through fuel importation, dismissing the existence of a “cabal” but acknowledging vested interests among private depot owners.
Adewole alleged that despite its massive 650,000-barrel daily capacity, the Dangote refinery has not been able to meet even the current reduced local fuel consumption.
He argued that private depot owners continue to shoulder the primary responsibility for fuel distribution across the nation, citing the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Chief Executive’s recent presentation indicating the refinery’s output is below even the reduced local demand.
However, a senior official at the Dangote refinery, speaking anonymously due to lack of authorization, countered these claims, asserting that the refinery continues to export fuel after supplying the local market.
The official questioned the basis of the marketers’ conclusion, stating that the refinery loads out millions of litres of fuel daily.
The Dangote official also suggested that Nigeria’s historical local fuel consumption figures have been manipulated, particularly during the fuel subsidy era, and believes the refinery’s operations will eventually reveal the true consumption volume.
We produce more than enough fuel for the local market, and we export.
“I have seen different reports where the marketers alleged that our refinery could not meet local demands. That is not true. We produce more than enough fuel for the local market, and we export,” the official stated.
Another source within the refinery supported President Bola Tinubu’s policy of restricting imports of locally producible goods as the only path to economic growth, cautioning that importers will likely resist this “Nigeria First Policy.”
The controversy follows DAPPMAN’s earlier accusations that Dangote is attempting to monopolize the downstream sector through price cuts that have reportedly caused losses for marketers with cargoes already ex-gantry.
In response, the Dangote source accused some importers of prioritizing profit over the welfare of ordinary Nigerians, alleging their involvement in round-tripping during the fuel subsidy regime.
The refinery source also challenged the current daily fuel consumption figures, demanding transparency and questioning the marketers’ knowledge of Dangote’s stock levels.
Aliko Dangote himself recently stated that the refinery will soon reach full production capacity and that Nigeria’s local consumption does not exceed 50% of its output, with the remaining 60% intended for export, primarily within Africa.
The Vice President of the Dangote Group, Davakumar Edwin, corroborated this, stating the refinery can produce 104 million litres of various petroleum products daily, compared to a local consumption of around 46 million litres.
Data from February indicated the refinery’s significant storage capacity, capable of holding fuel reserves sufficient for several days of national consumption.
Also read: Dangote vows to win fight against saboteurs of his refinery
Dangote previously noted that the refinery’s operation would reveal Nigeria’s true daily petrol consumption, exposing past round-tripping practices associated with subsidized imports. NMDPRA data also indicates a significant drop in petrol importation.
