By Bassey Udo
Concerns are mounting over pressures on domestic fuel supply as a result of growing volumes of imported products with the continued issuance of petroleum products import licences by the NIgerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Despite Dangote Petroleum Refinery and Petrochemicals (DPRP) proven capacity to meet and exceed Nigeria’s domestic fuel consumption requirements, growing volumes of imported petroleum products have continued to pose serious challenges to the Federal Government’s drive to achieve domestic refining capacity.
Bemoaning the impact of fuel imports on the stability of the country’s domestic refining capacity growth, the refinery noted that while it remains fully committed to supporting Nigeria’s energy security and ensuring uninterrupted fuel availability across the country, the volume of imported PMS entering the market has created uncertainty in domestic demand planning and inventory management.
Data from the NMDPRA Fact Sheet on the State of the Midstream and Downstream Sectors of the Petroleum Industry for May 2026 showed that average daily national consumption of premium motor spirit (PMS), popularly called petrol, for May 2025 and May 2026 at 52.1 million litres.
The publication, which gave the average capacity utilization of the Dangote Refinery, at 101.25%, disclosed that daily production of PMS from the plant for May 2026 stood at about 44.7 million litres.
Out of an average daily demand of about 50 million litres, the publication said about 47.4 million litres were supplied from domestic sources, out of which an average of 41.5million litres came from Dangote Refinery alone, with an average of 5.9 million litres as imports from oil marketing companies and the Nigerian National Petroleum Company (NNPC) Limited.
However, available fuel market data showed that the volume of imported PMS into the country accounted for approximately 43 percent of the total volume of fuel supplied into the Nigerian market in July.
In a statement on Wednesday, the management of Dangote Refinery said a review of the data raises serious concerns about the rationale of the NMDPRA continuing to promote large-scale importation of petrol when substantial local refining capacity is currently in existence in the country.
Since the 650,000 barrels per day capacity Dangote Refinery commenced operations in January 2024, its management has consistently maintained sufficient inventory levels and reserved product volumes to guarantee steady supply to meet the national fuel consumption demand.
Two years after the commencement of production, the company said in January 2026 the plant has the capacity to refine and supply an average of 75 million litres of petrol, which is in excess of the 50 million litres daily consumption by about 25 million litres.
To meet the target, the company said it was committed to mobilise resources to provide the significant investment in storage, logistics, and working capital required to protect Nigerians from supply disruptions and market volatility.
The company however, expressed concern over what it called “the absence of transparency in the process of mobilising the actual volume of imported products expected into the country”, saying this has posed serious challenges to effective production and inventory planning for stable supply of petrol in the country.
“Maintaining large stock of petroleum product positions without clear visibility into import volumes imposes substantial carrying costs on the refinery and ultimately undermines efficient market operations,” the company said.
As a responsible provider, the company said it has always endeavoured to keep adequate reserves to satisfy local demand at all times.
However, the company said in an environment where significant volumes of imported PMS continue to enter the market through the continued issuance of import licences by the NMDPRA, and where there is limited visibility on future import volumes, it becomes commercially unsustainable to continue holding excess inventory indefinitely.
Under these circumstances, the refinery pointed out that any surplus products not immediately absorbed by the domestic market must be exported to regional and international markets.
Consequently, the company said its export volumes have increased in recent months, not because local demand cannot be met, but because excess inventory generated by market uncertainty must be evacuated to avoid unnecessary storage and financing costs.
Emphasizing that its growing exports should not be interpreted as a lack of commitment to the Nigerian market, Dangote Refinery said it should rather be seen as a prudent operational response to the realities of a market where imported products continue to compete with locally refined fuel, despite the availability of sufficient domestic refining capacity.
Reiterating its commitment, readiness, willingness, and ability to meet and surpass Nigeria’s petroleum product requirements, the company gave the assurance that it would continue to invest heavily in ensuring reliable supply across the country.
Besides, the refinery maintained that should any supply shortfalls arise as a result of market distortions created by excessive importation and the inability of local producers to accurately forecast domestic demand, such shortages should not be attributed to Dangote Refinery, which has consistently demonstrated its capacity and commitment to serving the Nigerian market.
Consequently, Dangote Refinery called for greater transparency, improved market coordination, and policies that support local refining, enhance energy security, conserve foreign exchange, and maximize the economic benefits of Nigeria’s investments in domestic refining capacity.
