Dangote Refinery has accused Nigeria’s midstream and downstream petroleum regulator of driving higher petrol imports, warning that it may shift more of its output to export markets if import approvals continue despite the refinery’s ability to cover domestic demand.
Imports expand as domestic supply falls
- In its July Fact Sheet, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reported that petrol imports had increased 9% to 19.7 million litres a day.
- Over the same period, Dangote Refinery’s deliveries to the Nigerian market fell 21% to 25.8 million litres daily.
- Despite the decline in its supply, Dangote remained the largest contributor to the domestic petrol market, with a 56.7% share. Imported fuel represented the remaining 43.3%.
- Dangote Refinery responded in a statement issued on Wednesday, arguing that the trend undermines Nigeria’s effort to replace imported petrol with locally refined products.
- The refinery said the continued granting of petrol import licences, even though domestic refining capacity can meet demand, risked causing major imbalances in the downstream market.
Refinery warns of export shift
Dangote said it has consistently maintained sufficient reserves as part of its role as an energy supplier. However, it said the ongoing arrival of substantial volumes of imported petrol under regulator-issued licences, combined with poor visibility over future import levels, made it commercially impractical to keep surplus stocks indefinitely.
The company warned that it could increasingly direct petrol products to overseas markets if the NMDPRA maintains its policy of issuing import licences.
Dangote called for clearer disclosure of import plans, stronger coordination across the market and regulatory measures that encourage domestic refining. It said such policies would improve energy security, reduce pressure on foreign-exchange reserves and ensure Nigeria captures the broader economic value of its investment in refining capacity.
