The Dangote Petroleum Refinery and Petrochemicals, DPRP has raised concerns over the continued issuance of petroleum product import licences despite its proven capacity to meet and exceed Nigeria’s domestic Premium Motor Spirit, PMS requirements.
The refinery said the rising volume of imported PMS entering the Nigerian market was creating uncertainty in domestic demand planning and inventory management, despite its commitment to ensuring uninterrupted fuel supply across the country.
According to market data available to the refinery, imported PMS accounted for approximately 43 per cent of fuel supplied into the Nigerian market in July, raising questions about the continued need for large-scale imports amid substantial domestic refining capacity.
Dangote Refinery said it had consistently maintained adequate inventory and reserved product volumes since commencing operations to guarantee steady supply to the Nigerian market.
It noted that maintaining such reserves requires significant investment in storage, logistics and working capital, but added that limited visibility into the volume of imported products expected into the country was making production and inventory planning increasingly difficult.
The refinery said the situation had made it commercially unsustainable to hold excess inventory indefinitely while significant volumes of imported PMS continued to enter the market through licences issued by the regulator.
It explained that surplus products that are not immediately absorbed by the domestic market must consequently be exported to regional and international markets to avoid unnecessary storage and financing costs.
The refinery stressed that the increase in its export volumes in recent months was not due to an inability to meet local demand, but rather a response to excess inventory created by uncertainty in the domestic market.
Dangote Refinery further emphasised that its growing exports should not be interpreted as a reduction in its commitment to the Nigerian market, describing the exports as a prudent operational response to a market where imported products continue to compete with locally refined fuel despite available domestic refining capacity.
The company reiterated that it remains ready and able to meet and surpass Nigeria’s petroleum product requirements, while continuing to invest in reliable supply across the country.
It also cautioned that any future supply shortfalls resulting from market distortions caused by excessive imports and difficulties in accurately forecasting domestic demand should not be attributed to the refinery, which it said had consistently demonstrated its capacity and commitment to serving the Nigerian market.
DPRP called for greater transparency, improved market coordination and policies that support local refining, strengthen energy security, conserve foreign exchange and maximise the economic benefits of Nigeria’s investments in domestic refining capacity.