Dangote Refinery Blasts NMDPRA Over Rising Fuel Imports, Calls for Export Focus
Dangote Refinery has criticized Nigeria's rising fuel imports, blaming the NMDPRA for issuing import licenses despite the refinery's capacity to meet domestic demand. The refinery warns that continued imports could force it to focus on exports, urging for greater transparency and policies that support local refining and enhance energy security.
Dangote Refinery has strongly criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for the persistent rise in Nigeria's fuel imports, despite the refinery's demonstrated capacity to fully satisfy domestic demand. In a statement, Dangote Refinery expressed its position following the NMDPRA's July Fact Sheet, which indicated a 9 percent increase in fuel imports to 19.7 million litres per day. Concurrently, Dangote Refinery's domestic supply reportedly dropped by 21 percent to 25.8 million litres per day. Despite this, NMDPRA data confirmed that Dangote Refinery maintained the largest share of the domestic fuel supply market, accounting for 56.7 percent, while imports constituted 43.3 percent.
The management of Dangote Petroleum Refinery and Petrochemicals (DPRP) views the continued issuance of petroleum product import licenses as detrimental to Nigeria's strategic objective of transitioning from reliance on fuel importation to robust local production. The refinery emphasized that the influx of imported Premium Motor Spirit (PMS) creates fundamental distortions within the country's petrol downstream sector, questioning the necessity of large-scale imports when substantial local refining capacity is available and proven.
Dangote Refinery warned that if the regulator continues to issue petrol import licenses, it may be compelled to redirect its focus towards exporting petrol products. The refinery highlighted the commercial unsustainability of indefinitely holding excess inventory in an environment where significant volumes of imported PMS continue to enter the market with limited visibility on future import volumes. Such a scenario imposes substantial carrying costs on the refinery and undermines efficient market operations.
The refinery reiterated its unwavering commitment to Nigeria's energy security and ensuring uninterrupted fuel availability across the nation. It has consistently maintained sufficient inventory levels and reserved product volumes, backed by significant investments in storage, logistics, and working capital, all aimed at protecting Nigerians from supply disruptions and market volatility. However, the absence of transparency regarding the actual volume of imported products makes effective production and inventory planning increasingly challenging.
Under these market conditions, any surplus products not immediately absorbed by the domestic market must be exported to regional and international markets. Consequently, DPRP's export volumes have increased in recent months. The refinery clarified that this rise in exports is not due to an inability to meet local demand, but rather a