Dangote Petroleum Refinery and Petrochemicals (DPRP) says it can meet Nigeria’s entire domestic fuel needs on its own and is now pushing back against the regulator’s ongoing approval of import licences for Premium Motor Spirit (PMS).
The refinery says imported PMS made up roughly 43 percent of fuel supplied to the Nigerian market in July, a figure it argues undercuts the case for large-scale imports given the refining capacity now available at home.
DPRP, in a statement on Wednesday, maintained it has kept steady inventory and reserved supply since starting operations, backed by heavy investment in storage, logistics, and working capital meant to shield Nigerian consumers from shortages and price swings. But it says the lack of clarity around how much fuel is being imported at any given time makes planning production and stock levels difficult and drives up the cost of holding large reserves.
“As a responsible energy provider, we have always endeavoured to keep adequate reserves to satisfy local demand at all times,” the company said. “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.”
Because of this, DPRP says it has had to redirect surplus fuel abroad rather than hold onto stock that isn’t being absorbed domestically, which it says explains a recent rise in its export volumes.
The company insisted this is a business decision driven by market conditions, not a sign it is deprioritizing Nigerian consumers, arguing that its products are still competing against imports even though domestic supply is sufficient.
DPRP says it stands ready to cover — and exceed — the country’s fuel needs and warns that any future shortages linked to import-driven market distortions or poor demand forecasting should not be blamed on the refinery, given its demonstrated capacity to serve the market.
The company is calling for greater transparency and better coordination among industry players, along with policies that favor domestic refining, strengthen energy security, preserve foreign exchange, and capture more value from Nigeria’s investment in local refining capacity.
