Devakumar Edwin, Vice President of Dangote Industries Limited, shared these details during a Twitter Spaces session hosted by Nairametrics. He revealed that marketers have reached out to President Bola Tinubu, expressing their frustration over the falling prices, which have slid from N1,200 to N1,000 and now to N900 per litre.
Edwin explained that the Dangote Refinery, situated in the Lekki Free Zone near Lagos, faces significant challenges. Despite its capacity to process around 29 tankers of diesel daily, local demand remains tepid. Consequently, the refinery has had to export most of its diesel and aviation fuel.
The refinery situation has led to a broader issue. the local market reluctance to buy. Edwin noted that if local stakeholders, including the Nigerian National Petroleum Company (NNPC), continue to avoid purchasing these products, the refinery might be forced to export even more of its output. This includes the recently started production of Premium Motor Spirit (PMS), which marks a new phase for the refinery operations.
While the refinery’s capacity to produce a range of fuels including diesel, aviation fuel, and kerosene offers a promising outlook for Nigeria’s fuel supply, the local market dynamics and resistance from traders could limit the benefits of this development. As it stands, Dangote Refinery remains committed to supplying the local market, but its future operations might lean heavily on exports if local purchasing continues to falter.
This situation raises critical questions about the balance between local business interests and broader economic strategies. The dialogue between marketers and the refinery highlights the complexities of Nigeria’s fuel market and the broader implications of pricing strategies on local businesses.