Economic Reform Group Explains Why Tinubu-led FG Should Support Dangote Refinery
- The Independent Monitors Group on Economic Reforms has urged the Nigerian government and industry players to support Dangote Refinery in maintaining fuel market stability and distribution integrity
- The group praised the refinery for improving fuel quality, stabilising supply, and providing affordable petroleum products
- It cited data indicating that the refinery now meets 60% of Nigeria’s domestic gasoline demand, significantly reducing fuel imports
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Lagos, Nigeria - The Independent Monitors Group on Economic Reforms has urged the Nigerian government and other key industry players to provide necessary support and goodwill to ensure Dangote Refinery continues to maintain its distribution integrity and fuel market stability.
Douglas Inedu, president of the economic reform advocacy group, said this in a statement on Tuesday, February 25.
Source: Getty Images
According to Inedu, the refinery plays a crucial role in ensuring energy security for Nigeria and it is in the nation’s best interest to sustain and enhance its operations.
Dangote Refinery praised for fuel supply stability
The group also hailed the petrochemical refinery owned by billionaire Aliko Dangote for sustaining the production and distribution of quality petroleum products.
Inedu noted that the Dangote refinery’s operations have helped to end the importation and distribution of substandard fuel products in Nigeria.
He said the refinery’s sincerity and integrity in maintaining a steady supply of quality petroleum products have so far proven critics wrong.
Beyond ensuring fuel availability, the group highlighted that Dangote Refinery has been providing the most affordable petroleum products in the country. It also praised the refinery’s metering system, stating that its retailers offer accurate dispensing.
“The combination of its products is good for vehicles in Nigeria,” Inedu said, adding in Pidign that, “their fuel no dey quick burn” (their fuel lasts longer).
Independent fuel marketers, according to Inedu, are now leveraging the new partnership between MRS Oil Nigeria Plc and Dangote Refinery to reduce the price of Premium Motor Spirit (PMS), commonly known as petrol, nationwide. The collaboration, announced in December, has contributed to a downward trend in fuel prices.
Group highlights Dangote Refinery’s impact on fuel supply
According to Inedu, a recent report by S&P Global stated that the Dangote Petrochemical Refinery now meets up to 60% of Nigeria’s domestic gasoline demand, significantly reducing reliance on imports.
"This development highlights the refinery’s growing role in stabilising the country’s fuel supply and reducing dependence on imports, making a substantial impact on the local energy market; beating most analyst forecasts", the statement said.
The refinery commenced operations in September 2024 with its key gasoline processing unit, the Residue Fluid Catalytic Cracker (RFCC). Officials have projected that the facility could reach full operational capacity by mid-March 2025.
Source: Getty Images
As of January 2025, the refinery was reportedly producing over 30 million litres per day of gasoline, surpassing 85% utilisation capacity. This translates to roughly 200,000 barrels per day (b/d), covering a significant portion of Nigeria’s estimated 350,000 b/d gasoline demand, according to S&P Global Commodity Insights analysts.
S&P Global Commodities at Sea data also reportedly revealed that Nigeria’s gasoline imports fell to 62,000 b/d in January 2025, a sharp decline from the 2024 average of approximately 200,000 b/d.
Refinery owners ask FG to stop importation
Meanwhile, refinery owners in Nigeria have asked the Nigerian government to stop the importation of petrol, citing the enormous petrol reserves held by the Dangote Refinery.
The refinery owners said the giant facility holds over 500 million litres of petrol in stock, enough to meet the daily consumption needs of Nigerians.
The development came amid concerns over the continued dependence on imported fuel despite functional refineries.
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Source: Legit.ng
