By Emameh Gabriel
The management of Dangote Petroleum Refinery has raised concerns over what it described as the puzzling continuation of fuel import licences, pointing to data showing that imported petrol accounted for nearly half of Nigeria’s total fuel supply in July.
According to the refinery, market figures available to it indicate that imported Premium Motor Spirit made up approximately 43 per cent of the fuel supplied into the country during the month under review, despite its proven ability to meet domestic demand.
The company argued that with its current production capacity, there was no justification for maintaining the current volume of imports, which it said created uncertainty in demand planning and inventory management.
Since beginning operations, the refinery noted that it had invested heavily in storage facilities, logistics networks, and working capital to ensure uninterrupted fuel supply across Nigeria. However, it said the lack of clarity on expected import volumes made it increasingly difficult to plan production efficiently.
“As a responsible energy provider, we have always endeavoured to keep adequate reserves to satisfy local demand at all times,” the refinery stated.
“However, in an environment where significant volumes of imported PMS continue to enter the market through licences issued by the regulator, and where there is limited visibility on future import volumes, it becomes commercially unsustainable to continue holding excess inventory indefinitely.”
The cost of holding large product inventories without knowing how much imported fuel would arrive in the coming months was becoming commercially unsustainable, the refinery added.
Market distortions and exports
The refinery explained that the current situation had forced it to export products that would otherwise have been sold locally.
With the local market unable to absorb all the fuel it produces—partly due to the volume of imports entering the country—the refinery said it had no choice but to ship surplus products to regional and international markets.
The company stressed that its growing export volumes should not be misinterpreted as a lack of interest in serving the Nigerian market.
“Our growing exports should not be interpreted as a lack of commitment to the Nigerian market,” the statement read.
“Rather, exports are a prudent operational response to the realities of a market where imported products continue to compete with locally refined fuel despite the availability of sufficient domestic refining capacity.”
The company said it had consistently demonstrated capacity and commitment to serving the Nigerian market.
The company further warned that if Nigerians experienced fuel shortages in the future, the blame should not be placed on its operations.
“Should any supply shortfalls arise as a result of market distortions created by excessive importation and the inability of local producers to accurately forecast domestic demand, such shortages should not be attributed to us,” the refinery declared.
It argued that any supply disruptions would be a direct consequence of market distortions created by the current import-driven structure, which made it difficult for local producers to accurately forecast demand and plan production accordingly.
The refinery called on the relevant regulatory authorities to provide greater transparency on import volumes and coordinate market activities more effectively.
The company further urged the government to adopt policies that would support local refining and reduce the country’s dependence on imported petroleum products.
“We call for greater transparency, improved market coordination, and policies that support local refining, enhance energy security, conserve foreign exchange, and maximise the economic benefits of Nigeria’s investments in domestic refining capacity,” the refinery stated.
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