Africa’s richest man, Aliko Dangote, says the Nigerian National Petroleum Company Limited (NNPCL) refineries cannot compete with his giant 650,000 barrels per day refinery.
Speaking in a recent media interview, Dangote explained that the problem lies in the product mix of the state-owned refineries.
“NNPC’s refineries can never ever compete because the market here is a gasoline market,” he said.
Dangote revealed that his refinery produces 54% gasoline from crude oil. In contrast, he claimed NNPCL refineries could only achieve 18%.
“They will produce low-value fuel oil, which is not needed today, so it will be a loss,” he said. “The more they operate, the more money they lose.”
He warned that without profitability in Nigeria’s downstream oil sector, there would be no fresh investment. “If we don’t make money, nobody will come into this business. Then you end up with only one supplier,” Dangote added.
Refineries Under Review
Nigeria’s four refineries — Port Harcourt, Warri, and Kaduna — remain shut down for maintenance and review. Despite recurring repairs, they have failed to deliver at full capacity for decades (BBC, Bloomberg).
The Group Chief Executive Officer of NNPCL, Bayo Ojulari, recently ruled out any plans to sell the refineries, insisting that the state would retain ownership.
Dangote: “We didn’t want to go into retail. It was during the time we were building this refinery that they sold Mobil, AP, and Oando. We could have bought them, the three of them didn’t cost 500 million.
— Imran Muhammad (@Imranmuhdz) September 16, 2025
“If we knew this was going to happen, maybe we would have done it the… pic.twitter.com/twe9gvj1Lf
Dangote also addressed concerns about monopoly in the fuel sector. He explained that he avoided direct involvement in fuel distribution to prevent accusations of dominance.
“We didn’t want to go into retail. It was during the time we were building this refinery that they sold Mobil, AP, and Oando. We could have bought them, the three of them didn’t cost 500 million.
“If we knew this was going to happen, maybe we would have done it the other way. But we didn’t want to be called a monopoly, that’s why we left that side. Restrict ourselves to production, they will become our customers, and we will have a nice party together. But if they are looking for fights, I have been fighting all my life,” he sa.d
This comes after a clash with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).
The union accused Dangote of trying to control the market through his drivers’ unionisation. Dangote dismissed the allegations.
Rate, Like 👍, Comment💬, share this article and Follow us on our social media handles. You can also Submit your own story to get featured and earn rewards!
WhatsApp Channel
Telegram Channel
