Dangote to NNPC: Halt Fuel Importation, My Refinery Has Got Nigeria Covered

Dangote Urges NNPC to Stop Fuel Import as Refinery Boasts 500M Litres Stockpile 

“As we speak today, we have 500 million litres in our tanks...”

President Tinubu Meets Dangote: Refinery to Supply 30M Liters Daily, Ending Fuel Importation.

Aliko Dangote recently met with President Bola Tinubu, Minister of Finance Wale Edun, and NNPCL's Group CEO Mele Kyari to discuss his refinery's readiness to supply Nigeria's fuel needs. With sufficient crude oil available, Dangote's refinery can produce over 30 million liters daily, a significant step towards reducing Nigeria's reliance on fuel imports.

Dangote expressed gratitude to President Tinubu and regulatory bodies for their support, marking a pivotal moment for the $20 billion refinery project. The refinery, located in Lagos, boasts a daily crude oil refining capacity of 650,000 barrels and is designed to meet Euro-V quality standards for gasoline and diesel.

Regarding the naira-for-crude policy, a technical committee is working on the implementation, and any issues will be addressed by Minister Edun before being escalated to the President. This policy aims to optimize the refinery's output and potentially reduce costs associated with fuel imports.

Alhaji Aliko Dangote, President and Chief Executive of Dangote Industries Limited, has confidently stated that the Dangote Refinery can meet and even surpass Nigeria's daily fuel consumption. With a production capacity of 30 million liters per day, the refinery has already stockpiled 500 million liters of petrol, enough to sustain the country for over 12 days without imports or additional production.

Dangote made this declaration after meeting with President Bola Tinubu at the Presidential Villa in Abuja to discuss the for-crude policy. He urged the Nigerian National Petroleum Company Limited (NNPCL) and other fuel importers to halt importation, as the refinery can cater to the country's needs. However, Dangote noted that despite the refinery's readiness, marketers are not coming forward to collect the petrol, which is affecting distribution.

The Dangote Refinery, inaugurated in May 2023, is Africa's largest single-train petroleum refinery, with a capacity to produce Euro-V quality gasoline and diesel, jet fuel, and polypropylene. Once at full capacity, it's expected to eliminate Nigeria's petroleum import requirement, bolstering the country's current-account position and foreign-exchange reserves. This development positions Nigeria to become a net exporter of refined petroleum products and petrochemicals, potentially emerging as Africa's largest crude oil refining hub by 2025.

“At full capacity we can even supply whatever is being consumed, because what I estimated as our consumption is about 30-32 million litres which we can even start producing by next week,” Dangote said.

“As we speak today, we have 500 million litres in our tanks. With that, even if there is no production anywhere or no import, that will take the country more than 12 days.

“So, we are more than ready and I am also putting my name on the line by telling Mr President that we will be able to supply the market 30 million per day and we are ramping up.

“On the streets, what you have to understand is that we are producers. I have a refinery, and I am not in the business of retail.

“If I am in the business of retail you can hold me responsible, but what I am saying is that the retailers should please come forward and pick. If They don't come forward and pick, what do you want me to do?”

With my refinery's capacity to supply over 30 million liters daily, I expect NNPCL and marketers to cease imports, reducing unnecessary storage costs.

“I don't know if you understand what it means to keep half a billion litres in our tanks, it is costing me money. Everyday if I am to collect money I can charge 32 percent in interest,” he noted.

“That is what I am losing, and you are talking about 500 billion. If they come and collect then you will not see any queue in the filling stations.”

My refinery's fuel distribution should be effortless, building on NNPCL and marketers' established importation infrastructure.

“We have what it takes for them to come and collect, we are not retailers and we don't have trucks, but we have a factory where we can load, come and pick and distribute and they have been doing that with importation,” Dangote stated.

“Since they have been doing that with importation I see no reason why they should not come and collect and distribute.”