Dangote Defends Refinery’s Capacity Amid Marketers’ Criticism

The Dangote Petroleum Refinery has firmly responded to recent criticisms from oil marketers, asserting its capability to meet Nigeria’s domestic fuel demands. This rebuttal comes in the wake of claims by industry stakeholders suggesting that the refinery lacks the capacity to satisfy the nation’s fuel requirements, thereby necessitating continued fuel imports.

Marketers’ Concerns

Oil marketers, including members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), have expressed reservations about the federal government’s proposed fuel import ban. They argue that the current domestic refining capacity is insufficient, and an abrupt ban could lead to fuel shortages and price hikes. These concerns were highlighted in a recent report by Punch Newspapers.

Dangote Refinery’s Response

In response, officials from the Dangote Petroleum Refinery have refuted these claims, emphasizing that the facility possesses the necessary capacity to meet local fuel demand. They highlighted that the refinery has a production capacity of 650,000 barrels per day, which is sufficient to satisfy Nigeria’s domestic needs. Furthermore, the refinery has a stockpile of 500 million litres of petrol, ensuring a steady supply to the market. (Punch, Reuters)

The refinery’s management also addressed allegations of attempting to monopolize the local market by reducing petrol prices. They clarified that the price adjustments are a result of operational efficiencies and are aimed at providing affordable fuel to Nigerians.

Infrastructure Support

To bolster the distribution of refined products, the federal government has approved a $652 million funding package from China Exim Bank for the construction of a vital road project. This road will serve as a key evacuation corridor, facilitating the movement of goods from the Lekki Deep Sea Port, the Dangote Petroleum Refinery, and its adjacent fertiliser plant to multiple southern states.

Legal Developments

In a related development, the Dangote Refinery has filed a lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), challenging the issuance of import permits for petroleum products. The refinery argues that its output is sufficient to meet Nigeria’s demand without imports. A Nigerian judge recently dismissed the state oil company NNPC Ltd’s objection to the lawsuit, allowing the case to proceed.

Conclusion

The Dangote Petroleum Refinery’s assertion of its capacity to meet Nigeria’s fuel demand underscores its pivotal role in the nation’s energy sector. As discussions around fuel importation and domestic refining continue, the refinery remains committed to ensuring a stable and sufficient fuel supply for the country.