Amid rising fuel queues and surging petrol prices, Aliko Dangote, Chairman of Dangote Group, has called on petroleum marketers, including the Nigerian National Petroleum Company Limited (NNPCL), to procure petrol directly from his refinery to meet local demand.
Dangote made the statement following a closed-door meeting with President Bola Tinubu at Aso Rock Villa, Abuja, alongside the Implementation Committee on Crude Oil and Refined Products Sales in Local Currency.
With the refinery’s capacity to produce over 30 million litres of fuel daily and a current reserve of 500 million litres, Dangote assured that his facility could significantly offset Nigeria’s fuel needs. “We’re more than ready,” he stated, emphasizing that the refinery’s output could curb fuel shortages if marketers sourced supplies domestically rather than relying on imports.
Fuel shortages in major cities like Lagos and Abuja have exacerbated due to price hikes, with some stations charging over N1,000 per litre. Long wait times and reliance on black markets have further fueled public frustration. Dangote stressed that if marketers and NNPC sourced fuel from his refinery, the shortages would reduce quickly, adding, “If they come and collect, you will not see any queues in the filling stations.”
In line with the Federal Government’s recent policy shift, Nigeria’s crude oil sales to local refineries will be priced in naira and based on a market-driven exchange rate. Afreximbank will serve as the settlement facilitator for these naira-based crude transactions, which began with the Dangote Refinery.
During the meeting, Finance Minister Wale Edun explained that market-based pricing for petroleum products supports the NNPC’s finances, providing greater funding for federal, state, and local governments to fulfil obligations like salaries, social services, and infrastructure. The policy shift aligns with President Tinubu’s strategy to boost private sector involvement and strengthen the economy, adding critical investment to Nigeria’s refining capacity and reducing reliance on imports.
Meanwhile, the Nigerian Ports Authority (NPA) expects a vessel carrying 20,115,000 litres of Premium Motor Spirit (PMS) to arrive at Tincan Island Port in Lagos by Wednesday, October 30, 2024, alongside other shipments of goods, including used cars and bulk wheat.
