Dangote Raises Alarm Over Unsold Petrol at His Refinery, Invites Buyers
- Dangote has called on NNPC Limited and marketers to buy petrol from his refinery, as there is enough supply
- He stated that the refinery already has a large quantity of the product in storage, and it is costing a lot to keep it
- Nigeria currently operates a deregulated petroleum market, allowing marketers to either buy from Dangote or from abroad
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Aliko Dangote, CEO of Dangote Refinery, has called on the Nigerian National Petroleum Company Limited (NNPCL) and fuel marketers to patronise his products.
According to him, the refinery has enough products to address the country’s fuel scarcity, and there is no need for continued fuel imports.
Source: Getty Images
Dangote disclosed this at the State House on Tuesday, October 29, 2024, following a meeting with President Bola Ahmed Tinubu.
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Nigeria's richest man stressed the refinery’s capacity to supply local demand but noted that marketers have not been collecting available fuel from the facility. Leadership reports.
His words:
“We are producers. I have a refinery; I’m not in the retail business. If I were, you could hold me responsible for distribution.
"But as things stand, the retailers should come forward and collect the products we have in stock. It’s costly for us to keep millions of liters sitting in our tanks.”
Dangote confirms petrol availability
Dangote further expressed his frustration with the financial impact of storing excess fuel at the refinery, saying:
"Each day that fuel sits idle in storage, I incur losses that I could otherwise reinvest. Currently, I’m losing the equivalent of 32% interest on the value of this fuel due to delays in distribution.
"The government and marketers should leverage our local supply to prevent queues at filling stations.”
Dangote urged the NNPC and other stakeholders to source petrol from his facility, Channels reports.
He added:
“If they’re already distributing imported fuel, they can easily do the same with ours.
“We have the infrastructure for them to come and load the product. Once they pick up the fuel, they can handle distribution as usual.”
Marketers import petrol from abroad
Earlier, Legit.ng reported that Petroleum marketers expect a 42-million-litre fuel shipment next week to fill the supply gap.
The new imports, marketers believe, will help support production at the Dangote Refinery and prevent any scarcity.
Nigerians may see further changes in petrol pump prices at filling stations depending on the landing cost.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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