Dangote Petroleum Refinery and Petrochemicals (DPRP) has challenged the continued approval of fuel-import licences, saying its domestic plant has the capacity to meet and exceed Nigeria’s requirements for Premium Motor Spirit (PMS).
Imported fuel complicates market planning
The refinery said it remains committed to strengthening Nigeria’s energy security and maintaining uninterrupted supplies nationwide. However, the quantity of imported PMS entering the market is making it harder to forecast domestic demand and manage inventories effectively.
Market data available to DPRP indicated that imports represented about 43% of PMS supplied in Nigeria in July. The refinery said that proportion raises questions about the need for continued large-scale imports while substantial refining capacity is available locally.
Since beginning operations, Dangote Refinery has maintained what it described as adequate stocks and set aside product volumes to support consistent supply. That strategy has involved major spending on storage facilities, transport arrangements and working capital, with the aim of shielding consumers from disruptions and sharp market swings.
But the company said it lacks sufficient visibility into the actual quantity of imported fuel expected to arrive in Nigeria. Without reliable information on future imports, it cannot plan production or inventories efficiently. Holding large reserves in those circumstances creates significant financing and storage expenses and reduces the efficiency of the wider market.
DPRP said it has sought to maintain enough reserves to cover local demand at all times, but that approach is becoming commercially impractical when regulator-approved imports continue to enter the country in substantial volumes and future arrivals remain unclear. The refinery said it cannot indefinitely carry surplus stocks in such an environment.
Surplus diverted to export markets
When locally produced fuel is not immediately absorbed by the Nigerian market, the refinery said it must redirect the excess to regional and international buyers. Its exports have therefore risen in recent months, not because the plant is unable to satisfy domestic consumption, but because uncertainty created by imports leaves additional inventory that must be cleared to limit storage and financing costs.
The company cautioned that higher exports should not be viewed as evidence of reduced commitment to Nigeria. It described the shipments as a practical response to a market in which imported fuel continues to compete with domestic output even though local refining capacity is sufficient.
Dangote Refinery said it remains prepared and capable of supplying, and exceeding, Nigeria’s petroleum-product needs. It also said it continues to invest heavily in maintaining dependable distribution throughout the country.
The refinery added that any future shortages caused by market distortions from excessive imports, or by local producers’ inability to accurately estimate domestic demand, should not be blamed on Dangote. It said its operating record has demonstrated both the capacity and the commitment to serve the Nigerian market.
Call for policy changes
DPRP called for greater disclosure of expected import volumes, stronger coordination across the market and policies that favour domestic refining. It said such measures would improve energy security, reduce pressure on foreign-exchange resources and help Nigeria capture the full economic value of its investment in local refining capacity.
