Dangote Refinery Refutes Oil Marketers' Allegations: Enough Fuel for Local Needs and Exports
"Dangote Refinery Disputes Oil Marketers' Assertions: Says Output Exceeds Demand"
The Dangote Petroleum Refinery has hit back at oil marketers' claims that it can't sustain local fuel requirements, maintaining they've got the juice to meet domestic demands and even export beyond Nigeria's borders.
Apparently, Aliko Dangote, the refinery's founder, stirred up some controversy when he accused certain influential marketers of trying to undermine the $20 billion facility. Olufemi Adewole, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), responded by stating marketers are solely focused on keeping their businesses afloat through fuel imports.
Adewole rejected Dangote's hypothesis of a power-hungry cabal in the industry but acknowledged the influence of private depot owners who have invested heavily over the years to ensure a steady fuel supply for Nigerians.
Despite its striking 650,000 barrel capacity, the Dangote refinery has supposedly struggled to meet even the reduced consumption rates, according to Adewole. Private depot owners, he claimed, continue to shoulder the bulk of the fuel distribution burden across the nation.
Quoting the NMDPRA chief executive's recent presentation at the Villa, Adewole asserted that the Dangote refinery has yet to meet its reduced local consumption volume, suggesting the facility falls short for now.
Set the record straight:
An anonymous high-ranking official from the Dangote refinery put, "It's all hogwash. We're producing more than enough fuel for the local market, and we export."
Claims suggesting the refinery can't fulfill local demand don't hold water, insists this official. Nigerian local consumption statistics have allegedly been fudged for years for various reasons, primarily during the subsidy period, he said, hinting at the revelation of the true figures eventually.
Another refinery official argued that President Bola Tinubu's decision to ban imports is vital for economic growth, even though importers will try everything to derail the 'Nigeria First Policy.'
The refinery representative for Dangote had responded earlier to accusations by DAPPMAN boss about their intention to monopolize the downstream sector, especially since the refinery took the initiative to slash prices on fuel. In addition, the refinery representative revealed that certain importers disregard the average citizen's welfare, focusing solely on maximizing profits.
He also challenged the current reported daily fuel consumption figure, alleging that the real numbers must be disclosed.
Curious about the origins of these claims, a consultant for the 650,000-barrel-per-day processing facility urged DAPPMAN, IPMAN, and PPOROAON to disclose the quantity of fuel currently in stock at the refinery before judging its capability to meet local demand.
Dig a little deeper:
Currently, explicit data on the exact fuel stock quantity held by the Dangote Petroleum Refinery isn't readily available. However, the refinery insists they can produce enough refined products to meet 100% of Nigeria’s requirements, with local fuel consumption in Nigeria accounting for about 40% of the refinery’s total production capacity. The remaining 60% is intended for export[3]. As of recent data, significant reductions in fuel imports have occurred due to increased output from Dangote and other domestic refineries, indicating progress toward self-sufficiency[4].
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- The anonymous high-ranking official from the Dangote refinery asserts that the claims suggesting the refinery can't fulfill local demand are baseless.
- The refinery official argues that President Bola Tinubu's decision to ban fuel imports is pivotal for the country's economic growth.
- The Dangote refinery insists they can produce enough refined products to meet 100% of Nigeria’s requirements, with local fuel consumption accounting for about 40% of the refinery’s total production capacity.
- Significant reductions in fuel imports have occurred due to increased output from Dangote and other domestic refineries, indicating progress toward self-sufficiency.
