By Eshioromeh Sebastian
Amid rising fuel imports into Nigeria, Dangote Petroleum Refinery has increased its export of petroleum products to regional markets while warning the Federal Government that it should not be blamed if the country experiences fuel scarcity.
The refinery disclosed that imported Premium Motor Spirit accounted for approximately 43 per cent of total fuel supplied into the Nigerian market in July, a development it described as puzzling given its proven capacity to meet and exceed the nation’s domestic PMS requirements.
The company, in a statement issued on Wednesday, noted that despite its ability to satisfy local demand, the volume of imported products entering the market had created uncertainty in demand planning and inventory management.
Since commencing operations, the refinery said it had maintained sufficient inventory levels and reserved product volumes to guarantee steady supply to Nigerians. It added that this commitment required significant investment in storage, logistics, and working capital.
However, the refinery stated that maintaining large stock positions without clear visibility into import volumes imposed substantial carrying costs and ultimately undermined efficient market operations.
“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.”
Exports as operational necessity
The refinery explained that under the current circumstances, any surplus products not immediately absorbed by the domestic market must be exported to regional and international markets.
Consequently, the refinery said its export volumes had increased in recent months, not because local demand could not be met, but because excess inventory generated by market uncertainty must be evacuated to avoid unnecessary storage and financing costs.
“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.”
Warning on potential scarcity
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.
The company argued that any supply disruptions would be a direct consequence of the current import-driven market 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.
Call for policy reform
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.
The statement comes amid ongoing concerns about Nigeria’s dependence on imported petroleum products despite the commissioning of the 650,000-barrel-per-day refinery, which was designed to meet the nation’s entire fuel needs.
Industry observers have noted that the continued importation of fuel despite the availability of local refining capacity raises questions about the Federal Government’s commitment to reducing the nation’s reliance on imported petroleum products.
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