Dangote Refinery says rising fuel imports are forcing greater export focus despite strong local supply capacity

Dangote Petroleum Refinery and Petrochemicals (DPRP) has raised concerns over the issuance of petroleum product import licenses, despite the refinery's capacity to meet Nigeria's domestic Premium Motor Spirit (PMS) demands. The company highlighted that imported PMS has risen to 43 percent of the fuel supplied in the Nigerian market in July, creating uncertainty in local demand planning and inventory management.

DPRP has consistently maintained sufficient inventory levels and product reserves to ensure steady supply to the market, but the lack of transparency on import volumes makes planning difficult, leading to substantial carrying costs. Consequently, any surplus products not immediately absorbed by the domestic market must be exported, causing an increase in DPRP's exports.

The company emphasized that its export growth is a response to market uncertainty rather than a lack of commitment to Nigeria. DPRP reiterated its readiness to meet and exceed local petroleum product requirements and continued investments in reliable supply across the country. The company called for transparency, improved market coordination, and policies supporting local refining, enhancing energy security, conserving foreign exchange, and maximizing economic benefits from domestic refining investments.