Aliko Dangote, Africa’s wealthiest man, has once more reassured Nigerians that his refinery is capable of supplying enough fuel domestically, while calling on the government to ensure steady crude oil delivery to the facility in Lekki.
He warned that an ongoing dependence on imported petroleum could compel the refinery to channel refined products to foreign markets instead of meeting local demand.
In an interview with Al Jazeera, reported by the Punch, Dangote, who heads the Dangote Group, explained that the plant is currently running low on critical products such as aviation fuel and diesel, even as it has a surplus of petrol.
“The demand is incredibly high. Our jet fuel and gas oil are almost sold out. The only product in abundance is gasoline, which we refer to as PMS, Premium Motor Spirit,” Dangote said.
Heightened global supply disruptions, partly driven by ongoing tensions with Iran, have made the 650,000-barrel-per-day refinery an increasingly important source of refined petroleum for African nations seeking alternatives.
Reports have also emerged suggesting that the refinery, considered Africa’s largest, may be planning to export a significant portion of its petrol, a move that could substantially affect Nigeria’s domestic fuel market.
Sources familiar with the situation indicated that this potential strategy is linked to the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s rumored plans to resume issuing fuel import licenses to marketers.
Although the agency had consistently denied these claims, last week the government issued six new licenses for the importation of Premium Motor Spirit (petrol).
Compounding the challenges, David Bird, CEO of the Dangote Refinery, pointed out that inefficiencies in the naira-for-crude arrangement have limited the refinery’s potential earnings.
“Under the agreement, we were supposed to receive 13 to 15 cargoes a month, which would be enough to satisfy Nigeria’s domestic fuel requirements. Currently, we are only getting five cargoes, falling short of the pre-agreed volume,” Bird stated.
Consistent with his latest assurances, Dangote has repeatedly emphasized that the refinery possesses the capacity to meet the country’s fuel needs.
Back in March, as Middle East tensions intensified, the refinery promised to help Nigeria cope with rising global petroleum prices.
At that time, the Nigerian government had suspended all import licenses. Consequently, local production supplied approximately 92% of the nation’s fuel demand in February. However, petrol availability dropped sharply, declining from 64.9 million liters per day in January to 39.6 million liters per day the following month.