Energy retailers urge Nigeria to build fuel reserves amid fuel crisis
The move would undermine Africa’s richest man, Aliko Dangote, who says his 650,000 barrels-a-day refinery can meet Nigeria’s energy needs.
Nigerian energy retailers are advocating for the establishment of local strategic reserves of petrol and other fuels to mitigate potential supply disruptions in the global oil market. A prominent trade organization supporting fuel imports is spearheading this initiative, despite Aliko Dangote's assertion that his 650,000 barrels-a-day refinery can meet Nigeria's energy requirements.
This push for increased domestic refining has significantly decreased Nigeria's dependence on imported refined petroleum products, with over 80% of petrol supply between January and June originating from local sources. Nevertheless, a 6% year-on-year decline in total petrol supply during this period has sparked concerns regarding an overreliance on domestic refining.
The trade group contends that while the Dangote Refinery has achieved commendable production levels, technical and maintenance issues necessitate a "diversified supply framework," bolstered by domestic sourcing. Nigerian lawmakers convened a hearing this week to address the ongoing conflict between importers and refiners, with energy marketers reiterating their support for constructing reserves through a combination of imports and domestically refined stocks.
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