The Dangote Refinery is poised to halt Nigeria’s monthly importation of approximately one billion liters of premium motor spirit, signaling a significant shift in the nation’s fuel landscape.
Aliko Dangote, Chairman of the Dangote Group, announced that Nigeria will cease petrol imports once the refinery begins selling the product in June.
This development follows the reduction in the country’s monthly petrol imports after President Bola Tinubu’s removal of fuel subsidies in June, as reported by the National Bureau of Statistics (NBS).
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According to the NBS, Nigeria imported 2.09 billion liters of fuel in January 2023, 1.99 billion liters in February, 2.29 billion liters in March, 1.91 billion liters in April, and 2.01 billion liters in May. However, post-subsidy, June imports dropped to 1.64 billion liters, further declining to 1.45 billion liters in July.
Speaking at the Africa CEO Forum Annual Summit in Kigali, Rwanda, Dangote expressed confidence in the refinery’s ability to transform Africa’s energy landscape. He emphasized that Nigeria will no longer need to import petrol starting next month, as the refinery can meet the fuel needs of West Africa and beyond.
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“We have enough gasoline for the entire West Africa, diesel for West and Central Africa, and aviation fuel for the entire continent, with additional exports to Brazil and Mexico,” Dangote stated.
The refinery, with a capacity of 650,000 barrels per day, has commenced diesel and aviation fuel sales, though its petrol has yet to enter the market. Recently, the refinery sought a supply of two million barrels of West Texas Intermediate Midland crude monthly, starting in July.
Nigerians, particularly those relying on petrol for transportation and power generation, eagerly await the refinery’s output.
The National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, expressed optimism about the refinery’s capacity to meet Nigeria’s and West Africa’s fuel demands.
Fashola highlighted marketers’ anticipation of lifting fuel from the Dangote refinery, although he noted that prices might not return to pre-subsidy levels. He stressed that local production would likely reduce costs associated with imported fuel, leading to a marginal price reduction.
Despite the positive outlook, Fashola made a major demand from Dangote refinery by calling on it to work directly with IPMAN, which controls over 80% of Nigeria’s filling stations, rather than with individual marketers.
Clement Isong, Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), confirmed that MEMAN members have registered with the Dangote refinery. He assured that fuel would soon be available at their filling stations once commercial terms are agreed upon.
Isong emphasized that pricing would reflect market conditions to ensure business viability, stating, “With my international experience in petroleum economics, nobody does this business to make a loss.”
The Dangote Group has registered three major associations representing 75% of Nigeria’s market as distributors: the Depot and Petroleum Products Marketers Association of Nigeria, IPMAN, and MEMAN.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, recently highlighted the urgency of reducing Nigeria’s fuel imports to alleviate the country’s forex issues. He stressed that locally refined fuel would help free up foreign exchange for other economic sectors.
The Dangote refinery’s full-scale operation is set to revolutionize Nigeria’s energy sector, ending the nation’s dependence on imported petrol and stabilizing the fuel supply chain.