Aliko Dangote, chairman of the Dangote Group, has urged petroleum marketers, including the Nigerian National Petroleum Company Limited (NNPCL), to source fuel directly from his refinery to alleviate Nigeria’s fuel shortage and meet local demand. His statement came after discussions with President Bola Tinubu at the Aso Rock Villa in Abuja, where Dangote confirmed the refinery’s readiness to supply fuel and highlighted its extensive reserves.
“We’re more than ready,” Dangote affirmed, speaking to State House correspondents, adding that the refinery currently holds over 500 million litres in reserves—enough to sustain domestic supply for twelve days without imports. According to Dangote, the refinery can produce over 30 million litres of fuel per day at full capacity, positioning it as a key asset in addressing the country’s recurrent fuel shortages.
This call to action follows a recent uptick in fuel queues, particularly in major cities like Lagos and Abuja, where petrol prices have climbed above N1,000 per litre in some areas. The government attributed these fuel shortages and price surges to logistical challenges, yet the strain on consumers continues as many petrol stations remain closed or intermittently stocked, driving customers to the black market.
Dangote expressed frustration at the ongoing scarcity, stating, “If retailers don’t come forward to pick up what we already have in reserve, I can only continue to store it, which costs me money daily. NNPC and marketers should prioritise local sourcing from the refinery instead of imports.”
The Nigerian Ports Authority (NPA) also reported that a vessel carrying 20,115,000 litres of Premium Motor Spirit (PMS) is expected to arrive on Wednesday, October 30, at Lagos’s Tincan Island Port. This comes amid the government’s broader push to localise fuel sourcing under Tinubu’s recent naira-based crude oil policy, designed to stabilise the national currency while enhancing fuel access.
In line with the policy, the government committed to allocating 445,000 barrels of crude oil per day for domestic use, prioritising local refineries like the Dangote Refinery over imports. The African Export-Import Bank (Afreximbank) has also been appointed as the primary settlement bank to facilitate naira transactions for crude sales, establishing a market-based pricing model to guide transactions between NNPC, Dangote, and other refineries.
“The President has directed NNPC and independent marketers to purchase petroleum from local refineries based on a market-determined exchange rate,” Dangote explained. “This approach allows for sustainable supply by leveraging Afreximbank’s role as intermediary for the naira-based transactions.”
The Finance Minister, Wale Edun, speaking on Tuesday, noted that adopting a market-based pricing system allows NNPC to manage its finances effectively, improving federal and local government funding capacities. “With market-driven pricing, NNPC can restore its balance sheet, strengthening resources for crucial areas like salary payments, public services, and infrastructure development,” Edun added.
As petrol supply resumes, the NPA disclosed that additional vessels carrying diesel, butane, and bulk wheat are scheduled to berth at ports across Lagos. The authority further noted that recent arrivals include shipments with over 500 used cars, underscoring Nigeria’s continued demand for imported goods as the country addresses domestic supply challenges in fuel distribution.