Fuel supply now exceeds Nigeria’s demand, says Dangote refinery

The Dangote Petroleum Refinery says the supply of petroleum products has now exceeded Nigeria’s demand.

In a statement on Saturday, Anthony Chiejina, the group chief branding and communications officer at Dangote Industries Limited, said daily petrol loading has reached 45 million litres, while diesel stands at 25 million.

The communications officer reaffirmed the company’s commitment to ensuring steady and uninterrupted supply of petrol also known as premium motor spirit (PMS) and automotive gas oil (diesel) nationwide.

Chiejina said the refinery’s operations are driven by its dedication to supporting national energy stability and consumer confidence.

“Our refinery is currently loading over 45 million litres of PMS and 25 million litres of diesel daily which exceeds Nigeria’s demand,” 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 said improved local production of petroleum products has helped to stabilise the exchange rate and strengthen the naira.

“We have reduced foreign exchange outflows and increased inflows, which in turn supports the naira and strengthens the economy,” he said.

‘15% IMPORT TARIFF WILL PROTECT DOMESTIC INDUSTRIES FROM UNFAIR COMPETITION’

The media recently reported that the federal government has imposed a 15 percent tariff on imported petroleum products.

Speaking on the development, the refinery official said it would be unpatriotic for anyone to criticise the recently announced tariff, which he described as “a good start”.

The tariff, he said, is designed to protect domestic industries from unfair competition and safeguard local production.

“Dumping engenders poverty, discourages industrialisation, creates unemployment and leads to revenue loss for the government,” Chiejina said.

“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.”

Beyond the tariff, he advised the government to strengthen its monitoring and enforcement mechanisms to prevent the dumping of substandard and toxic petroleum products by “unscrupulous and rent-seeking individuals who prioritise profiteering at the expense of Nigerians, often undermining well-intentioned government policies for their selfish interests”.

He noted that the prevalence of dumping in past years discouraged investors from establishing industries in Nigeria, as imported products flooded the market at unsustainable prices, undermining local production.

The new tariff policy, according to the executive, would benefit local refiners and encourage fresh investments in the downstream oil sector, thereby strengthening Nigeria’s industrial base and creating more jobs.

‘TINUBU’S REFORMS RESHAPING DOWNSTREAM OIL, GAS SECTOR’

He commended the foresight of President Bola Tinubu for approving the tariff policy aimed at strengthening and transforming Nigeria’s downstream oil and gas sector.

The decision, he said, reflects the government’s commitment to creating a stable, business-friendly environment that supports local investment and enhances energy security.

The refinery’s spokesperson said Tinubu continues to embody courageous and visionary leadership, “renewing the hope of Nigerians and restoring investor confidence in the nation’s economy”.

“His administration’s bold and business-friendly reforms are reshaping the downstream oil and gas sector, unlocking new opportunities for industrial growth and national prosperity,” Chiejina said.

“The latest policy initiative stands as a testament to his foresight — one of the most transformative steps yet toward securing Nigeria’s energy future and empowering local industries to thrive.”

Chiejina warned that failure to protect local industries could lead to large-scale dumping from countries in Asia and Europe with excess production capacities.

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 urged rent-seekers to reconsider their business practices and align with the federal government’s vision for a self-sustaining energy sector, rather than promoting the dumping of petroleum products in Nigeria.

The official also emphasised 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.

According to the statement, the refinery, equipped with advanced technology and extensive infrastructure, is expected to significantly eliminate reliance on fuel imports, enhance supply chain stability, and alleviate pressure on the foreign exchange (FX) reserves.

He said Aliko Dangote, President of the Dangote Industries Limited (DIL) recently assured Nigerians that petrol prices will 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,” Dangote was quoted as saying.

Chiejina said since commencing petrol production in September 2024, refinery has played a pivotal role in ensuring price stability, reducing the cost of petrol, aimed at stabilising the market and easing the burden on consumers.

“It has also eliminated the recurring fuel scarcity and long queues at filling stations that Nigeria often experienced, particularly during festive periods,” he said.

According to statement , the average price of PMS in September 2024 was about N1,030 per litre, compared to an average of N841-N851 per litre in September 2025, following the implementation of the refinery’s direct delivery scheme.

“Similarly, as of September 2024, the pump price of Automotive Gas Oil (AGO) ranged between N1,400 and N1,700 per litre, depending on the state, with prices reaching up to N1,700 in most northern states,” the statement reads.

“By September 2025, however, the average price had dropped significantly to around N1,020 per litre, reflecting the refinery’s impact on stabilising the market and reducing logistics costs.”

Comparing prices in Nigeria with other African countries, the refinery said petrol prices in neighbouring West African countries range between $1.20 and $2.00 per litre, while the average price in the nation remains at about $0.60 per litre.

This, the company said, is a “clear indication” of its “profound impact on affordability and supply stability”.