As Nigerians debate the federal government’s newly approved 15% tariff on imported petrol and diesel, the Dangote Refinery says it produces more than enough to meet the nation’s demand.
Owned by Aliko Dangote, Africa’s richest man, the refinery insists that the country has no reason to continue importing fuel.
“Our refinery is currently loading over 45 million litres of PMS and 25 million litres of diesel daily, which exceeds Nigeria’s demand,” said Anthony Chiejina, Chief Branding and Communications Officer of Dangote Industries Limited.
Tariff Aimed at Protecting Local Refining
President Bola Tinubu recently approved the 15% import duty on petrol and diesel, following a memo by the chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji.
The policy, the presidency said, will “strengthen local refining capacity and ensure a stable, affordable supply of petroleum products across Nigeria.”
Analysts say the move effectively shields the Dangote refinery from being undercut by cheaper imports, ensuring that local production remains competitive.
However, critics warn that the tariff could push up retail pump prices, especially since imported fuel currently supplies about 15% of Nigeria’s market.
Refinery defends pricing and supply capacity
Mr Chiejina said the refinery has been working with regulators and distributors to ensure nationwide availability.
“Dangote remains steadfast in its commitment to meeting the energy needs of Nigerians. This significant production capacity not only guarantees local supply but also enhances energy security and reduces dependence on imports,” he said.
Economists have linked the refinery’s operations to the relative stability of the naira, which has hovered between ₦1,400 and ₦1,500 per dollar in recent months.
The reduction in fuel imports has freed up foreign exchange that once went into paying for refined petroleum abroad.
“We have reduced foreign exchange outflows and increased inflows, which in turn supports the naira and strengthens the economy,” Chiejina added.
Nigeria’s Fuel Future and Refinery Expansion
The refinery began producing diesel and aviation fuel in January 2024 and started petrol production in September.
It is also preparing an expansion phase that will boost capacity from 650,000 to 1.4 million barrels per day (bpd) — surpassing India’s Jamnagar Refinery and making it the world’s largest single-train refinery.
The company says the expansion will create about 65,000 jobs and deepen opportunities for local industries that depend on energy supply.
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