Nigeria Should Not Be Importing Fuel; We Have the Capacity to Meet Local Demand — Dangote

…Calls for Legislative Backing for Nigeria-First Crude Supply Policy

President and Chief Executive of Dangote Industries Limited, Aliko Dangote, has criticised the crude supply practices of international oil companies (IOCs), insisting that Nigeria has no reason to import crude oil or refined petroleum products if existing laws are properly enforced.

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Speaking during a visit by the South-South Development Commission (SSDC) to the Dangote Petroleum Refinery and Fertiliser Complex in Lagos, Dangote said the Petroleum Industry Act (PIA) already provides a clear framework for prioritising domestic crude allocation. However, he noted that operators continue to exploit loopholes that undermine the intent of the legislation.

Dangote explained that several oil companies routinely divert Nigerian crude to their offshore trading subsidiaries—particularly in Switzerland—forcing local refineries to repurchase the same crude at a premium of four to five dollars per barrel.

“The crude is available. Supply is not the problem. The issue is that some companies move all the crude to their trading arms, and we are compelled to buy at a premium. Yet we do not earn any premium on our refined products,” he said.

He confirmed that he has written formally to the Federal Government, urging it to charge royalties and taxes based on the actual price paid for crude. This, he said, would curb revenue leakages and discourage practices that place domestic refiners at a disadvantage.

According to him, NNPC remains the primary supplier fulfilling domestic supply obligations, currently delivering five to six cargoes each month. However, the refinery requires at least twenty cargoes monthly from January to operate at full capacity.

Describing the current situation as “unsustainable for a country that desires real industrial growth,” Dangote stressed that Africa’s economic future depends on value addition rather than the continued export of raw materials.

“It is embarrassing that while we exported 1.5 million tonnes of gasoline in June and July, imported products were still flooding the Nigerian market. That is dumping,” he stated.

Commenting on the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s (NMDPRA) report that the refinery supplied only 17.08 million litres of the 56.74 million litres consumed locally in October 2025, Dangote said the refinery exports its products only when regulators permit indiscriminate importation by marketers.

He reaffirmed the refinery’s commitment to supply 50 million litres of petrol daily during the festive season—amounting to 1.5 billion litres in December 2025 and another 1.5 billion litres in January 2026.

While commending President Bola Tinubu’s Nigeria-First Policy, Dangote called for stronger legislative support to make the policy fully enforceable. He noted that the President remains focused on positioning Nigeria as a continental leader in value-added production, job creation, and sustainable industrial expansion.

Dangote further explained that the company’s expansion drive is aligned with Africa’s rapidly growing energy demand—estimated at about four million barrels of petroleum products per day—while regional refining capacity remains below 1.5 million barrels daily.

Highlighting Nigeria’s ambition to build a one-trillion-dollar economy, Dangote said the target is achievable with disciplined policy execution, strong power generation capacity, and revitalisation of the steel sector.

“You cannot build a great nation without power and steel. Every bolt and nut used here was imported. That should not continue. Nigeria should be supplying steel to smaller African nations,” he said.

He also identified significant opportunities for collaboration with the SSDC in agriculture, particularly in soil testing and customised fertiliser blending. He noted that the misuse of fertiliser is a major contributor to low productivity among Nigerian farmers.

“We are establishing advanced soil-testing laboratories. From next year, we hope to partner with the SSDC to empower farmers through accurate soil diagnostics and customised fertiliser formulations,” he said.

Dangote added that despite global growth in electric vehicles, Africa will remain heavily reliant on petroleum products due to widespread energy poverty and affordability challenges.

“People talk about electric vehicles, but 600 million Africans do not have electricity for basic appliances. Oil remains essential because more than 6,000 products are derived from it,” he noted.

He reaffirmed the refinery’s commitment to supporting national economic development, strengthening local industry, and positioning Nigeria as a net exporter of refined products and petrochemicals.