Dangote Refinery has raised concerns over the continued issuance of petroleum product import licences, saying rising imports of Premium Motor Spirit (PMS) are creating uncertainty in the domestic market despite its capacity to fully meet and exceed Nigeria’s fuel requirements.
The management of Dangote Petroleum Refinery and Petrochemicals (DPRP) said it remains committed to Nigeria’s energy security and uninterrupted fuel supply but warned that the growing volume of imported PMS is making domestic demand forecasting, production planning and inventory management increasingly difficult.
According to market data available to the refinery, imported PMS accounted for approximately 43 per cent of fuel supplied into the Nigerian market in July, raising questions over the need for continued large-scale imports when substantial local refining capacity is available.
Since commencing operations, Dangote Refinery said it has consistently maintained adequate inventories and reserved product volumes to guarantee steady supplies to the Nigerian market. This, it noted, has involved significant investments in storage facilities, logistics and working capital.
However, the refinery said the lack of transparency over the volume of imported products expected into the country has made it increasingly difficult to determine how much fuel should be produced and held in stock.
“As a responsible energy provider, we have always endeavoured to keep adequate reserves to satisfy local demand at all times. However, in an environment where significant volumes of imported PMS continue to enter the market through licences issued by the regulator, and where there is limited visibility on future import volumes, it becomes commercially unsustainable to continue holding excess inventory indefinitely,” the company stated.
Dangote Refinery explained that when products are not immediately absorbed by the domestic market, the surplus must be evacuated through exports to regional and international markets.
It stressed that the increase in its export volumes is not due to an inability to meet local demand, but rather a practical response to excess inventory created by uncertainty in the domestic market.
According to the refinery, exporting surplus products helps prevent unnecessary storage and financing costs while ensuring that its operations remain commercially sustainable.
DPRP further emphasised that its growing exports should not be interpreted as a withdrawal from the Nigerian market or a lack of commitment to domestic supply.
Rather, the company said, the exports reflect the realities of a market where imported products continue to compete with locally refined petroleum products despite the availability of sufficient domestic refining capacity.
The refinery reiterated that it remains “ready, willing and able” to meet and surpass Nigeria’s petroleum product requirements and continues to invest heavily in ensuring reliable fuel supplies nationwide.
It also warned that if supply shortfalls occur because of market distortions arising from excessive imports and the resulting difficulty for local refiners to accurately forecast demand, such shortages should not be attributed to Dangote Refinery, which it said has consistently demonstrated its capacity and commitment to serving the Nigerian market.
The refinery therefore called for greater transparency, improved market coordination and policies that support local refining, arguing that such measures would strengthen Nigeria’s energy security, conserve foreign exchange and maximise the economic benefits of investments in domestic refining capacity.