Dangote says Nigeria has no business importing fuel, calls for stronger “Nigeria First” Policy
Chris Uba
Aliko Dangote, President and CEO of Dangote Industries Limited, has criticised the crude supply practices of international oil companies, insisting that Nigeria has the capacity to meet domestic fuel demand and should not be importing crude or refined petroleum products if existing laws are properly enforced.
Speaking during a visit by the South-South Development Commission (SSDC) to the Dangote Petroleum Refinery and Fertiliser Complex in Lagos, Dangote highlighted that the Petroleum Industry Act (PIA) provides a framework prioritising domestic crude supply. However, he noted that loopholes are being exploited, undermining the law’s intent.
“The crude is available. It is not a matter of shortage. But the companies move everything to their trading arms abroad, and we are forced to buy at a premium. Meanwhile, we do not receive any premium for our own products,” Dangote said, explaining that Nigerian crude is often diverted to subsidiaries overseas, particularly in Switzerland, forcing domestic refineries to purchase it at $4–$5 per barrel above market rates.
He further disclosed that he has formally written to the Federal Government, urging it to charge royalties and taxes based on the actual price paid for crude. This, he argued, would prevent revenue losses and discourage practices that disadvantage local refiners.
Refinery Capacity and Production Plans
Dangote said the NNPC remains the primary supplier, providing 5–6 cargoes of crude monthly. However, the refinery requires up to 20 cargoes per month from January to operate optimally.
“It is unsustainable for a country intent on genuine industrial growth. Africa’s economic future depends on value addition rather than perpetual raw material export,” Dangote stressed. He described the situation in June and July — when 1.5 million tonnes of gasoline were exported while imported products flooded the market — as “dumping.”
Addressing the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) report that the refinery supplied only 17.08 million litres of the 56.74 million litres consumed in October 2025, Dangote said exports occur if regulators continue to permit dumping by marketers.
He pledged that the refinery would supply 50 million litres of petrol daily during the Yuletide season, totaling 1.5 billion litres in December 2025 and another 1.5 billion litres in January 2026.
Backing the Nigeria First Policy
Dangote commended President Bola Tinubu’s “Nigeria First Policy”, but stressed the need for legislative support to make the initiative more effective. He said the policy aims to transition Nigeria from raw material exports to value-added production, job creation, and sustainable economic growth.
He noted that Africa’s demand for petroleum products is growing, estimated at four million barrels per day, while regional refining capacity lags below 1.5 million barrels.
Economic Development and Industrial Growth
Dangote also highlighted the role of power and steel production in national development.
“You cannot build a great nation without power and steel. Every bolt and nut used here was imported. That should not be the case. Nigeria should be supplying steel to smaller African countries,” he said, linking industrial growth to Nigeria’s ambition of becoming a one trillion-dollar economy.
He also discussed opportunities for partnership with the SSDC in agriculture, including advanced soil testing and customised fertiliser formulation, to improve farmers’ productivity.
“From next year, we want to work with the SSDC to empower farmers with accurate soil assessments and tailored fertiliser blends,” Dangote said.
Petroleum Products Remain Essential
Despite global shifts toward electric vehicles, Dangote emphasised that petroleum products will remain crucial in Africa, given limited power access and affordability challenges.
“People talk about electric vehicles, but 600 million Africans do not have power for their fridge. Oil remains essential because over 6,000 products come from it,” he said.
Dangote reaffirmed the refinery’s commitment to national economic growth, strengthening local industry, and making Nigeria a net exporter of refined products and petrochemicals.
