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Dangote Refinery Speaks On Petrol Scarcity In Nigeria

Petrol Scarcity

Dangote Petroleum Refinery has assured that the era of petrol scarcity in Nigeria is over, declaring that the country has entered a new phase of fuel abundance driven by local refining.

The assurance was given by the newly appointed Managing Director of the refinery, David Bird, at a press briefing in Lagos on Wednesday, following what he described as seamless fuel supply during the Christmas and New Year holidays.

Bird said the refinery’s performance during the festive period demonstrated its capacity to stabilise the domestic fuel market.

Describing the development as a major milestone, Bird said Nigeria is no longer only guaranteed fuel availability but now enjoys world-class products that meet international standards.

Beyond availability, he said, “Nigeria is now receiving world-quality fuels, produced to Euro 5 standards, because we also export gasoline to Europe and jet fuel to markets such as Dubai.”

He criticised the long-standing practice of dumping inferior fuel products in West Africa, noting that Dangote Refinery’s output represents a major improvement in public health due to cleaner, low-sulphur fuels.

Naijaonpoint reports that Bird disclosed that the refinery has achieved massive production and evacuation milestones.

“We have been able to achieve 1,000 trucks daily and 500 million litres a day,” he said.

According to him, the availability of a stable fuel supply and relatively lower prices is already contributing to economic stability, including support for the naira.

The managing director said the company’s decision to further invest in refining capacity and expand polypropylene production to 2.4 million tonnes would strengthen domestic manufacturing and create a large industrial ecosystem.

He noted that the company would focus on capacity building and expansion rather than dwell on the controversial organisational restructuring that took place in October.

“Dangote’s vision for the expansion is all about enforcing lower costs that can expand to areas that are population-led,” Bird said.

Bird dismissed claims by some industry players that the ₦739 per litre petrol price was anti-competitive.

“The retail price is fully competitive. The consumer has a choice to choose whichever, and I’d like to see a change in how regulator works for the market,” he said.

Also speaking, the Head of Communications for the Dangote Group, Anthony Chiejina, said global oil market disruptions, including the ongoing crisis in Venezuela, highlight the importance of domestic refining.

“We are a producing country,” Chiejina said, as Bird added that reliance on fuel imports exposes Nigeria to fluctuations in crude and product prices.

Meanwhile, Bird stressed that local production brings stability to the Nigerian fuel market and reduces exposure to international shocks.

“Nigeria is now enjoying world-class fuel. We have the capacity, and we must make sure our production matches the European quality,” he said.

Bird described the Dangote Refinery as more than a crude processing plant, stressing its strategic importance to Africa.

“This is a continental project. This is not just a crude processing plant, and our objective is to drive price stability within a range of the international benchmark market,” he said.

On the refinery’s expansion, Bird explained that the plan involves what he termed “ruthless replication,” adding that a similar facility could be built within three years.

“We’d be placing all of our long-term procurement,” he said, noting that the refinery is currently in a stabilisation phase.

Despite ramping up some units in the second half of 2025, he said the facility consistently supplied over 50 million litres of finished fuel daily, sometimes exceeding 52 million litres.

According to him, this was possible because “Dangote Refinery is not a conventional single-crude refinery, but a highly flexible merchant refining, blending and trading platform.”

Bird added that steel structures for the expansion are expected to start rising before the end of 2026.

On production and evacuation, Bird said the refinery has achieved off-take of over 50 million litres per day, matching its production levels.

“Off-take fluctuates depending on demand, but the refinery can export excess volumes if necessary,” he said.

Addressing fuel distribution and the free trucking initiative, Bird disclosed that about 4,000 trucks are currently on site.

He said the final step before full rollout is the deployment of a computerised security system to ensure customers receive the exact volumes they purchase.

On petrochemicals, Bird said polypropylene production is central to the refinery’s long-term strategy.

He disclosed that the existing polypropylene plant has a capacity of 800,000 tonnes, with an additional PDH unit set to raise output to 1.2 million tonnes, and eventual expansion to 2.4 million tonnes.

He added that future diversification could include detergents, base oils, lubricants and Liquefied Petroleum Gas, driven by import substitution and population growth.

Responding to questions on the crude-for-naira programme, Bird said between 30 and 40 per cent of the refinery’s crude supply currently comes from the scheme.

He reiterated that sustained local refining remains critical to securing Nigeria’s energy future and guaranteeing long-term price stability.

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