DANGOTE REFINERY REITERATES COMMITMENT TO STEADY FUEL SUPPLY, DEFENDS TARIFF POLICY

Dangote Petroleum Refinery has reaffirmed its dedication to ensuring a consistent and uninterrupted supply of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel) across Nigeria, emphasizing that local production has played a crucial role in stabilizing and strengthening the national currency, the Naira. Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Industries Limited, stated over the weekend that the refinery’s operations have significantly reduced foreign exchange outflows while boosting inflows, thereby supporting economic resilience.

“We have reduced foreign exchange outflows and increased inflows, which in turn supports the Naira and strengthens the economy,” Chiejina said in a formal statement. He revealed that the refinery is currently loading over 45 million litres of petrol and 25 million litres of diesel daily, exceeding Nigeria’s domestic demand. “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 addressed recent criticisms of the refinery’s tariff, describing it as a necessary measure to protect domestic industries from unfair competition. “It would be unpatriotic for anyone to criticise the tariff,” he asserted, noting that the policy is designed to prevent dumping, which he said undermines 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.”

He called for strengthened government monitoring and enforcement to curb the influx of substandard petroleum products by unscrupulous actors. “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 Chiejina, past dumping practices deterred investment in Nigeria, but the new tariff policy will foster growth in the downstream oil sector. “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.” He commended President Bola Ahmed Tinubu for approving the tariff, saying it reflects the administration’s commitment to a business-friendly environment and energy security.

Chiejina warned that without such protections, Nigeria could face large-scale dumping from Asia and Europe, which would harm domestic refineries and allied industries. “Failure to protect local industries could lead to large-scale dumping from countries in Asia and Europe with excess production capacity. Such practices 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 stressed the need for patriotism and collective responsibility among stakeholders to support policies that strengthen the economy.

The refinery, equipped with advanced technology and extensive infrastructure, is expected to eliminate reliance on fuel imports, stabilize supply chains, and ease pressure on foreign exchange reserves. Recently, Aliko Dangote, President of Dangote Industries Limited, assured Nigerians that petrol prices would not be increased during the ember months, despite global price surges. “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 commencing petrol production in September 2024, the refinery has contributed to price stability and reduced costs, alleviating market burdens and eliminating recurrent fuel shortages and long queues at filling stations. Chiejina highlighted that petrol is more affordable in Nigeria compared to neighboring West African countries, where prices range from $1.20 to $2.00 per litre, against an average of $0.60 per litre in Nigeria, showcasing the refinery’s impact on affordability and supply stability.

In a recent media briefing, Dangote disclosed that the company aims to achieve $55 billion in annual revenue from the refinery, which plans to expand production from 650,000 barrels per day to 1.4 million barrels per day, solidifying its status as the world’s largest single-train refinery. The $20 billion facility is among several private refineries licensed by the Nigerian government after state-owned refineries became non-operational, leading to domestic shortages and economic challenges.