Aliko Dangote, President of Dangote Industries Limited (DIL), has announced that the Dangote Petroleum Refinery currently holds over N600 billion worth of Premium Motor Spirit (PMS), commonly known as petrol, in its storage facilities. This substantial reserve is intended to fully satisfy Nigeria’s domestic fuel requirements, countering recent claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) that local refining can only meet 50% of the nation’s fuel demand.
The NMDPRA has continued to issue import licenses to oil marketers to prevent potential fuel shortages across the country. However, Dangote has consistently opposed this approach and is currently pursuing legal action to compel the regulatory body to halt the frequent issuance of fuel import licenses.
During a recent visit by a Zambian government delegation led by Energy Minister Mr Makozo Chikote, Dangote highlighted that the refinery possesses more than half a billion litres of petroleum products in its storage tanks. He emphasized that the facility is capable of producing sufficient quantities of refined products—including gasoline, diesel, and kerosene—to meet 100% of Nigeria’s consumption needs. According to NMDPRA data, Nigeria’s average daily petrol consumption stands at approximately 50 million litres.
Dangote further articulated the refinery’s broader mission, stating that it aims to serve not only Nigeria but the entire African continent. He expressed a commitment to bolstering intra-African trade in line with the African Continental Free Trade Area (AfCFTA) agreement.
Following the tour of the refinery complex, Zambian Energy Minister Chikote expressed enthusiasm about potential collaborations. He noted that Dangote’s vision aligns with Zambia’s strategy to enhance private sector participation in its energy sector. Chikote remarked that Dangote’s initiatives offer immediate solutions to Zambia’s energy challenges and could foster increased productivity in sectors such as mining and agriculture.
The Zambian delegation’s visit included an extensive tour of the Dangote complex within the Free Trade Zone in Ibeju Lekki. The tour encompassed key facilities such as the Single Point Mooring system, the Dangote Jetty, Africa’s largest fertilizer plant, and the 650,000 barrels per day refinery—the world’s largest single-train refinery.
In a recent interview with The Wall Street Journal, Dangote discussed the challenges faced during the refinery’s development, including delays and cost overruns that escalated the project’s cost to $20 billion. Despite these obstacles, the refinery is poised to reach its full capacity of 650,000 barrels of oil daily, producing about 150% of Nigeria’s fuel needs. However, issues such as insufficient crude oil supply from Nigeria’s state oil company, NNPC, have complicated Dangote’s mission to end the country’s reliance on costly fuel imports. Dangote has faced accusations of seeking an illegal fuel monopoly and has had significant disputes with NNPC, but he continues to market his products locally and for export. The refinery began producing diesel, jet fuel, and gasoline last year, with completion expected to bring potential revenue growth of up to $30 billion for the Dangote Group. Despite the modest impact on local fuel prices so far, Dangote remains committed to economic empowerment initiatives through his foundation and is cautious about undertaking similar projects in the future due to the intense challenges faced.
This development underscores Dangote’s strategic role in addressing energy needs both within Nigeria and across the African continent, while also highlighting opportunities for regional cooperation in the energy sector.
