Dangote: We Have Capacity to Meet Nigeria’s Petrol Demand

The Dangote Petroleum Refinery and Petrochemicals has explained that its recent increase in petrol exports is not due to an inability to meet Nigeria’s domestic demand, but rather the uncertainty created by continued petrol imports. In a statement, the refinery expressed concern over the issuance of petroleum product import licences despite its capacity to meet and exceed the country’s Premium Motor Spirit requirements. Dangote said maintaining large inventories without clear information on expected import volumes had become increasingly costly, particularly in terms of storage, logistics and working capital. The refinery said available market data showed that imported petrol accounted for about 43 per cent of fuel supplied into Nigeria in July, despite the availability of substantial local refining capacity.

According to the refinery, the continued arrival of imported petrol makes it difficult to accurately plan production and manage domestic inventories. It said that when surplus products are not immediately absorbed by the local market, they have to be exported to regional and international markets to avoid unnecessary storage and financing costs. Dangote stressed that the increase in exports should not be interpreted as a lack of commitment to the Nigerian market, insisting that it remains capable of meeting and exceeding domestic fuel requirements. The company also reaffirmed its commitment to Nigeria’s energy security and said it would continue investing in reliable petroleum product supply across the country.

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