Aliko Dangote, president of Dangote Industries Limited, clarified that his 650,000-barrels-per-day refinery in Lekki, Lagos, operates in partnership with the Nigerian National Petroleum Company Limited (NNPCL), not in competition.
Speaking at a stakeholders’ meeting in Abuja, Dangote addressed concerns from independent petroleum marketers who feared a monopoly after NNPCL was named the sole off-taker of the refinery’s petrol. He emphasized that the arrangement ensures stable supply to Nigeria’s 220 million-strong market, where fuel demand exceeds 50 million liters daily, while fostering national energy security.
The $20 billion refinery, operational since September 2024, produces petrol, diesel, and jet fuel, ending Nigeria’s $10 billion annual fuel import dependency. NNPCL’s exclusive role, announced on September 3, 2024, sparked protests from marketers, who argued it stifles competition in the deregulated downstream sector, where NNPCL controls 60% of retail stations. Dangote countered that the refinery’s output, with 98% of petrol meeting Euro-V standards, complements NNPCL’s 445,000-barrels-per-day Port Harcourt and Warri refineries, boosting local refining capacity to 1.5 million barrels daily by 2026.
Marketers’ concerns stem from NNPCL’s price hikes, with petrol reaching ₦1,030 per liter in Lagos by May 2025, a 20% increase since September 2024, impacting 70% of commuters. Dangote pledged to engage independent marketers for future distribution, citing ongoing talks to allocate 30% of output directly. The refinery’s 2024 production of 1.2 billion liters of petrol has stabilized supply, reducing queues by 80%. However, Nigeria’s 32% inflation and $2 billion in smuggling losses challenge affordability. Dangote’s clarification aligns with government goals to save $7 billion annually on imports, though marketers demand regulatory reforms to ensure fair access.