President of Dangote Industries Limited, Aliko Dangote, has faulted the current crude oil supply practices of international oil companies (IOCs), insisting that Nigeria has more than enough capacity to meet its fuel needs without resorting to importation.
Dangote made the remarks while receiving officials of the South South Development Commission (SSDC) at the Dangote Petroleum Refinery and Fertiliser Complex in Lagos. He stressed that the Petroleum Industry Act (PIA) already provides a legal framework that prioritises domestic crude supply but lamented that the spirit of the law is being undermined.
According to him, several oil producers prefer to sell Nigeria’s crude to their overseas trading subsidiaries, especially in Switzerland, rather than supply local refineries. This practice, he said, forces domestic refiners like Dangote Refinery to buy Nigerian crude at an additional premium of $4–$5 per barrel, even though local producers do not grant such premiums to Nigerian refiners on finished products.
> “There is no shortage of crude. The challenge is that companies move the crude to their trading arms abroad, and we are left to buy at a premium. Meanwhile, we do not get any premium for our refined products,” Dangote said.
He revealed that he has already written to the Federal Government, calling for royalties and taxes to be based on the actual selling price of crude to prevent revenue losses and protect local refiners from unfair pricing.
Dangote noted that although the NNPC remains committed to supplying crude under domestic supply obligations — providing five to six cargoes monthly — the refinery requires up to 20 cargoes per month starting January to operate efficiently.
Calling the current arrangement “unsustainable,” Dangote argued that Nigeria’s economic future depends on value addition, not the export of raw materials.
> “It is shameful that while we exported 1.5 million tonnes of gasoline in June and July, imported products were still flooding the market. That is dumping,” he added.
Responding to a recent report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which claimed that the refinery supplied only 17.08 million litres of the 56.74 million litres consumed in October 2025, Dangote warned that the refinery would continue to export its products if the government allows marketers to keep importing.
Festive Season Supply Assurance
Dangote announced that the refinery plans to supply 50 million litres of petrol daily during the festive period, with 1.5 billion litres set aside for December 2025 and another 1.5 billion litres for January 2026.
He applauded President Bola Tinubu’s Nigeria First Policy and called for stronger legislative backing to strengthen its impact. According to him, Tinubu is committed to repositioning Nigeria as a continental leader in value-added production, job creation and industrial growth.
Dangote also noted that Africa currently consumes about 4 million barrels of petroleum products per day, while available refining capacity is less than 1.5 million barrels. He said this gap informs the company’s expansion plans.
On Nigeria’s ambition of building a $1 trillion economy, Dangote said the goal is achievable with consistent policies, improved power supply and a revitalized steel industry.
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