Dangote Petroleum Refinery has reiterated its commitment to ensuring a steady and uninterrupted supply of petrol or Premium Motor Spirit (PMS) and Automotive Gas Oil (diesel) nationwide, adding that local production of petroleum products has contributed to the strengthening and stabilisation of the local currency, the Naira.
“We have reduced foreign exchange outflows and increased inflows, which in turn supports the Naira and strengthens the economy,” Anthony Chiejina, Group Chief Branding and Communications Officer, Dangote Industries Limited (DIL), said in a statement at the weekend.
“Our refinery is currently loading over 45 million litres of PMS and 25 million litres of diesel daily, which exceeds Nigeria’s demand (domestic needs),” he said. “We are working collaboratively with regulatory agencies and distribution partners to guarantee efficient nationwide delivery. Dangote remains steadfast in its commitment to meeting the energy needs of Nigerians. This significant production capacity not only guarantees local supply but also enhances energy security and reduces dependence on imports.”
Chiejina further explained that “it would be unpatriotic for anyone to criticise the tariff,” recently announced by the refinery, which, according to him, “is designed to protect domestic industries from unfair competition and safeguard local production.”
“Dumping engenders poverty, discourages industrialization, creates unemployment and leads to revenue loss for the government. Across the world, nations protect their local manufacturers and industries from the threat of dumping. Dumping destroyed our textile industry, which was once a major employer of labour and creator of wealth,” said Chiejina.
He added: “Beyond the tariff, the government should strengthen its monitoring and enforcement mechanisms to prevent the dumping of substandard and toxic petroleum products by unscrupulous and rent-seeking individuals who prioritize profiteering at the expense of Nigerians, often undermining the government’s well-intentioned policies for their selfish interests.”
According to the DIL official, the prevalence of dumping in past years discouraged investors from establishing industries in Nigeria, because “imported products flooded the market at unsustainable prices, undermining local production.” The new tariff policy, Chiejina said, would benefit local refiners and encourage fresh investments in the downstream oil sector, thereby strengthening Nigeria’s industrial base and creating more jobs.
He commended the foresight of President Bola Ahmed Tinubu for approving the tariff policy aimed at strengthening and transforming Nigeria’s downstream oil and gas sector, noting that “the decision reflects the administration’s commitment to creating a stable, business-friendly environment that supports local investment and enhances energy security.”
Chiejina warned that “failure to protect local industries could lead to large-scale dumping from countries in Asia and Europe with excess production capacity. Such practices,” he said, would “strangulate domestic refineries, cripple allied industries, and undermine the laudable policies of President Bola Tinubu’s administration aimed at promoting industrial growth and economic stability.”
He emphasized the need for “a collective sense of patriotism and responsibility” among industry stakeholders, noting that national progress “can only be achieved through shared commitment to policies that strengthen local industries and protect the economy.”
Equipped with advanced technology and extensive infrastructure, Dangote refinery is expected to significantly eliminate reliance on fuel imports, enhance supply chain stability, and alleviate pressure on foreign exchange reserves.
Recently, Aliko Dangote, the DIL President, assured Nigerians that the prices of petrol would not be hiked during the “ember months,” despite recent global price increases.
“I want to assure Nigerians that the Dangote Refinery is fully committed to maintaining an uninterrupted supply of petrol throughout the festive period. Nigerians can look forward to a Christmas and New Year free of fuel anxiety.”
Since it commenced petrol production in September 2024, Dangote Petroleum Refinery has played a pivotal role in ensuring price stability, reducing the cost of petrol, aimed at stabilizing the market and easing the burden on consumers. It has also eliminated the recurring fuel scarcity and long queues at filling stations, which Nigeria often experiences, particularly during festive periods, Chiejina said.
In comparison, he said that petrol costs more in neighbouring West African countries, at between US$1.20 and $2.00 per litre, against an average price of about $0.60 per litre, in Nigeria, “a clear indication of the refinery’s profound impact on affordability and supply stability.”
Briefing the media last week, Dangote disclosed that the DIL was targeting an annual revenue of US$55 billion from the Dangote Petroleum Refinery, which is expected to expand production from 650,000 barrels per day (bpd) to 1.4 million bpd, as the World’s largest.
The US$20 billion facility is the World’s largest single-train refinery, and one of a score of private refineries licensed by the Nigerian government after four state-owned refineries were run aground, resulting in incessant hardship and shortages.
*Paul Ejime is a Media/Communications Specialist and Global Affairs Analyst*
