Despite being one of the largest refineries in Africa, the Dangote Refinery is struggling to sell its products locally. Over 95% of petroleum product importers in Nigeria are not buying from the refinery, forcing it to export most of its diesel and aviation fuel.
Wednesday, Devakumar V.G. Chief Executive Officer of Dangote Cement Plc revealed key insights into the challenges facing the Dangote Refinery and its impact on Nigeria’s fuel supply and prices :
The refinery is only able to sell around 29 tankers of diesel per day due to low patronage, leading to a significant surplus. As a result, it has imported around 57 shiploads of crude, as local supply from the NNPC remains limited.
Local petroleum product marketers have complained to President Bola Tinubu that the refinery’s low prices – which have dropped from N1,200 to N900 per litre – are negatively impacting their businesses.
However, despite the challenges, the Dangote Refinery’s petrol production capacity is sufficient to meet all of Nigeria’s local demand, with 44% of its capacity going towards local sales. Meanwhile, around 29 tankers are lifting fuel from the depots of other importers daily.