Dangote Refinery Addresses Nigeria’s Fuel Demand
Local Refineries Meet Less Than Half of Demand
Fuel Subsidy Removal Reduces Daily Consumption
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has disclosed that Nigeria consumes approximately 50 million litres of petrol daily, with local refineries supplying less than half of this demand. This shortfall necessitates significant importation of refined petroleum products to meet national needs.
Farouk Ahmed, Chief Executive of NMDPRA, highlighted that the current consumption rate reflects a notable decrease from the previous average of 66 million litres per day, a change attributed to the government’s removal of the fuel subsidy in May 2023. Despite the operational status of refineries such as Port Harcourt (210,000 barrels per day) and Warri (125,000 barrels per day), local production remains insufficient. Consequently, oil marketing companies have stepped in to bridge the supply gap through imports.
The NMDPRA assures that all imported petroleum products adhere to the standards set by the Standards Organisation of Nigeria and the Petroleum Industry Act, dismissing circulating claims of substandard imports as unfounded. The authority remains committed to ensuring a consistent and quality fuel supply across the nation, prepared to utilize alternative suppliers if necessary to prevent potential shortages. In a related development, the Dangote oil refinery has announced a stockpile of 500 million litres of petrol, asserting its capability to meet Nigeria’s fuel demand. This statement counters claims by some marketers who suggested the need for additional imports to address fuel shortages. The refinery, which began processing petrol in September 2024, aims to gradually increase production to 35 million litres daily, aligning with efforts to reduce dependence on imported fuel.
