The President and Chief Executive of Dangote Industries Limited, Alhaji Aliko Dangote, says his refinery has the capacity to surpass the daily fuel needs of the country.

To this end, he urged the Nigerian National Petroleum Company Limited (NNPCL) and other fuel importers to stop importation.

The advice, if realised, is expected to save the country several billions of dollars in fuel importation and ease its corresponding strain on the naira.

Dangote disclosed this on Tuesday at the Villa after a meeting with President Bola Tinubu on the naira-for-crude policy.

The Minister of Finance, Wale Edun, and the Group CEO of the NNPCL, Mele Kyari, attended the meeting.

Dangote said he told the President that his refinery is ready to supply over 30 million litres daily with enough supply of crude.

He said the technical committee is doing the work and if there is any issue after that, the Minister of Finance and Coordinating Minister of the Economy will give guidance before it is escalated to the President.

According to him, “At full capacity we can even supply whatever is being consumed because what I estimated as our consumption is about 30-32 million litres which we can even start producing by next week.

“As we speak today. We have 500 million litres in our tanks. With that even if there is no production anywhere or no import that will take the country more than 12 days.

“So, we are more than ready and I am also putting my name on the line by telling Mr President that we will be able to supply the market 30 million per day and we are ramping up”.

Dangote added that, “On the streets what you have to understand is that we are producers. I have a refinery, and I am not in the business of retail.

“If I am in the business of retail you can hold me responsible, but what I am saying is that the retailers should please come forward and pick. If They don’t come forward and pick, what do you want me to do”.

He said he is expecting that the NNPCL and the marketers will stop importing, adding that he was losing money keeping product in tanks.

“I don’t know if you understand what it means to keep half a billion litres in our tanks, it is costing me money. Everyday if I am to collect money I can charge 32 percent in interest.

“That is what I am losing, and you are talking about 500 billion. If they come and collect then you will not see any queue in the filling stations”.

He said coming to the refinery to lift fuel should not be difficult since the NNPCL and other marketers have been doing that with importation.

“We have what it takes for them to come and collect, we are not retailers and we don’t have trucks, but we have a factory where we can load, come and pick and distribute and they have been doing that with importation.

“Since they have been doing that with importation I see no reason why they should not come and collect and distribute”, he stated.

The naira has crashed massively against the dollar at the foreign exchange market on Monday.

FMDQ Data showed that the naira dropped to N1670.65 per dollar on Monday from N1600 exchanged last Friday.

This represents a N70.65 depreciation.

Similarly, at the parallel market, the naira fell to N1746 per dollar on Monday from N1740 traded at the close of last week.

The development comes after foreign exchange transaction turnover dropped significantly to $81.17 million on Monday from $284.93 million on Friday.

About 42.3 million litres of imported Premium Motor Spirit (PMS), commonly known as petrol, is set to arrive in Nigeria, according to oil marketers on Friday. They emphasized the need for local refineries to boost output as importation remains necessary to meet domestic fuel demand.

Petrol dealers pointed out that imports would continue until Nigeria’s local production, including from modular refineries and the Dangote Petroleum Refinery, can sufficiently supply the market. As of now, production levels at these refineries fall short, compelling dealers to rely on imported supplies of diesel and petrol.

In early September, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced that the Dangote Refinery would initially supply 25 million litres of petrol daily, rising to 30 million litres starting in October 2024. According to NMDPRA, an agreement was reached with NNPC to supply local crude to Dangote’s refinery in Nigerian currency.

“NNPC has agreed to commence crude oil sales to Dangote Refinery in naira, starting with a supply of 25 million litres of PMS this September, which will increase to 30 million litres by October 2024,” NMDPRA posted on social media.

However, oil marketers claim the Dangote facility, valued at $25 billion and based in Lekki, has not yet reached these volumes, making further imports necessary to fill the gap. One major dealer, who requested anonymity, reported, “We expect about 32,000 metric tonnes of PMS to arrive next week, equivalent to around 42.3 million litres.”

Two prominent marketers are collaborating on the importation, supplementing supplies previously brought in by other dealers. “The consignments are shared between major marketers. This doesn’t exclude us from buying from Dangote Refinery, but in a deregulated market, we have the freedom to source competitively,” the dealer explained.

From October 18 to 20, 2024, four vessels carrying approximately 123.4 million litres of petrol docked at Nigerian ports, enhancing fuel supplies nationwide. These deliveries confirm a recent report that revealed oil marketers are actively importing fuel to support the Dangote Refinery’s limited output.

Another dealer commented, “Many marketers are ramping up imports, while those who cannot import buy from Dangote. The market’s now open, so everyone sources as they need. It’s essential, especially since local production is still insufficient.”

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Ukadike Chinedu, confirmed that while IPMAN members haven’t yet started importing PMS, the market is now open to anyone with the capacity to import.