IMPORTS CHOKE LOCAL REFINING: DANGOTE REFINERY LAMENTS 43% PMS INVASION, SHIFTS FOCUS TO EXPORT DESPITE CAPACITY TO POWER NIGERIA
GREATRIBUNETVNEWS–THE Dangote Petroleum Refinery and Petrochemicals (DPRP) has raised alarm over the Federal Government’s continued issuance of fuel import licences despite its proven capacity to meet — and exceed — Nigeria’s entire PMS needs.
Management said while it remains fully committed to Nigeria’s energy security and uninterrupted fuel supply, the flood of imported petrol is distorting local demand planning and crippling inventory management.
Market data shows imported PMS gulped 43% of Nigeria’s total fuel supply in July alone — a development the refinery says is unjustifiable when a world-class local refinery is ready to deliver.
Since commencing operations, Dangote Refinery has consistently maintained sufficient inventory levels and reserved product volumes to guarantee steady supply to the Nigerian market. This commitment has required significant investment in storage, logistics, and working capital, all aimed at protecting Nigerians from supply disruptions and market volatility.
However, the refinery stated that the absence of transparency regarding the actual volume of imported products expected into the country makes effective production and inventory planning increasingly challenging. Maintaining large stock positions without clear visibility into import volumes imposes substantial carrying costs on the refinery and ultimately undermines efficient market operations.
“As a responsible energy provider, we have always endeavoured to keep adequate reserves to satisfy local demand at all times. 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 refinery explained that, under these circumstances, any surplus products not immediately absorbed by the domestic market must be exported to regional and international markets. Consequently, DPRP’s export volumes have increased in recent months, not because local demand cannot be met, but because excess inventory generated by market uncertainty must be evacuated to avoid unnecessary storage and financing costs.
Dangote Refinery emphasised that its growing exports should not be interpreted as a lack of commitment to the Nigerian market. 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 reiterated that it remains ready, willing, and able to meet and surpass Nigeria’s petroleum product requirements and continues to invest heavily in ensuring reliable supply across the country.
The refinery further stated that 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 Dangote Refinery, which has consistently demonstrated its capacity and commitment to serving the Nigerian market.
DPRP therefore called for greater transparency, improved market coordination, and policies that support local refining, enhance energy security, conserve foreign exchange, and maximize the economic benefits of Nigeria’s investments in domestic refining capacity.
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