Dangote Assures Nigerians of Sufficient Fuel Supply
The President of Dangote Group, Aliko Dangote, has confirmed that the Dangote Petroleum Refinery has over 500 million litres of petrol in its storage. He assured Nigerians that the refinery now produces enough fuel to meet both local demand and export needs.
Speaking during a tour of the $20 billion refinery in Lekki, Lagos, alongside Zambia’s Minister for Energy, Makozo Chikote, Dangote emphasized that Nigeria’s fuel needs are fully covered. The Zambian minister visited the refinery to explore potential collaboration to improve Zambia’s energy security.
Dangote revealed that the refinery has fuel stocks worth over ₦600 billion in its tank farm. He also stated that by next month, the plant will reach its full production capacity of 650,000 barrels per day. He noted that Nigeria does not consume up to 50% of the refinery’s output, meaning the surplus will be exported.
“We have more than enough fuel to meet Nigeria’s demand. Right now, we have over half a billion litres of petrol in stock, valued at over ₦600 billion. The refinery is producing petrol, diesel, and kerosene in sufficient quantities to cover Nigeria’s entire fuel requirement,” he said.
He further explained that the refinery is making arrangements to ensure a steady supply of crude oil for production.
High-Quality Fuel Production
Dangote highlighted that his refinery produces fuel of higher quality than most refineries in Africa and Europe. He claimed that the refinery’s petrol has a sulphur content as low as zero parts per million (ppm) and an octane number of 95, making it one of the cleanest fuels available.
“In terms of quality, no refinery in Africa or even Europe can match what we produce. Our fuel meets global standards, and we can even manufacture winter diesel and Euro-5 fuel. Many refineries, especially in Europe, are shutting down because they cannot compete with our production quality,” he added.
Export Plans and Economic Impact
Dangote disclosed that about 40% of the refinery’s fuel production will be used locally, while the remaining 60% will be exported to other African countries. He mentioned that talks are ongoing with Afreximbank to resolve issues related to letters of credit and financing for fuel distribution across the continent.
“The maximum local fuel consumption is around 40%, while 60% will be sold to other African markets. We are working with banks to ensure most of our products remain within Africa so that this refinery benefits the entire continent, not just Nigeria,” he said.
Dangote also pointed out that the refinery has a significant advantage due to its location near the sea, making exports easier.
According to Davakumar Edwin, Vice President of Dangote Group, the refinery can produce 104 million litres of different petroleum products daily, including 57 million litres of petrol, 20 million litres of jet fuel, and 37 million litres of diesel. With Nigeria’s daily fuel consumption at 46 million litres, the remaining 58 million litres will be exported.
The refinery has large storage capacity, with 12 tanks capable of holding 600 million litres of petrol, 17 tanks for 408 million litres of aviation fuel, and 14 tanks for 340 million litres of diesel. Overall, the facility has 177 tanks capable of storing 4.74 billion litres of fuel.
Zambia Seeks Collaboration
During the visit, Zambia’s Minister for Energy, Makozo Chikote, expressed interest in working with Dangote to improve Zambia’s fuel supply. He explained that Zambia currently relies on a facility in Dar es Salaam, Tanzania, which is also used by other countries like Malawi, Burundi, and the Democratic Republic of Congo, leading to congestion and delays.
Chikote emphasized the need for African countries to collaborate in solving energy challenges, stating that Dangote’s refinery could play a crucial role in ensuring stable fuel supply and competitive pricing in Zambia.
In response, Dangote assured that the refinery is not just for Nigeria but for Africa as a whole. He stressed the importance of intra-African trade and the need for the continent to rely on its own resources rather than importing fuel from overseas.
“This refinery is for Africa, not just Nigeria. We must strengthen the African Continental Free Trade Area agreement and work together to develop the continent’s energy sector,” Dangote stated.
