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Devakumar V.G. Edwin, Vice President of Dangote Industries Limited, has voiced his frustration over the local market’s lack of support for the Dangote Refinery’s products.
In a recent discussion hosted by Nairametrics on X (formerly Twitter), Edwin highlighted that despite the refinery’s efforts to offer affordable petroleum, many Nigerian traders are still opting to import refined products instead of purchasing from the local refinery.
Edwin detailed the refinery’s original goal: to reduce Nigeria’s dependence on imported petroleum. “The primary aim of setting up the Dangote Refinery was to process local crude oil instead of exporting it and importing finished products,” he said. “We wanted to refine the crude locally for domestic use and export any surplus.”
Currently, the refinery is only selling about 3% of its output to local marketers. The remaining 97%, which includes diesel and jet fuel, is being exported because local traders are reluctant to buy at the refinery’s lower prices. This situation has forced the refinery to focus on international markets, contrary to its original plan to supply the Nigerian market.
READ ALSO: Dangote Refinery Can Sell Petrol Directly to Marketers-NNPC
Edwin noted, “Right now, we’re only able to sell 2 to 3% of our products to local buyers, with 95 to 97% being exported.” He speculated that some marketers may be deliberately hindering the refinery’s operations to favor imports.
He also shared that local marketers have raised concerns with President Bola Tinubu about the refinery’s pricing. “They have reached out to the president, saying our price cuts are disrupting the market,” Edwin explained. Despite attempts to adjust prices to stimulate local demand, these efforts have faced pushback, with marketers accusing the refinery of undermining the market.
READ ALSO: NNPCL Gives No Guaranty Of Price Reduction After Agreeing To Lift Fuel From Dangote Refinery
As a result of this resistance, the refinery has had to export most of its products. Edwin described the refinery’s capacity, noting it can produce up to 54 million liters of refined petroleum per day, depending on crude oil availability. However, due to inconsistent local crude supplies, the refinery has been relying on imports from countries like the U.S. and Brazil.
The situation is further complicated by international oil companies prioritizing exports and selling crude at higher prices to local buyers. Despite these challenges, the refinery’s output is more than sufficient to meet Nigeria’s petroleum needs, with just 44% of its production capable of covering the entire national demand for refined products.
Edwin also discussed a request from the Nigerian National Petroleum Corporation (NNPC) to have a permanent presence at the Dangote Refinery as part of a crude supply arrangement. “NNPC has asked to station a team of 6 to 10 people at our refinery. They want office space for their team to manage crude supply, oversee production, and buy products in Naira,” Edwin said.
This request aligns with NNPC’s goal to closely monitor the crude supply and ensure a consistent flow of Premium Motor Spirit (PMS) for Nigeria. Edwin also mentioned ongoing discussions about a new model where the refinery would purchase crude from the government and sell PMS in Naira instead of dollars
