Dangote Faults Crude Export Practices, Demands Legislative Support for Nigeria First Policy

Dangote Faults Crude Export Practices, Demands Legislative Support for Nigeria First Policy

President and Chief Executive of Dangote Industries Limited, Aliko Dangote, has criticised international oil companies for undermining Nigeria’s refining capacity by diverting crude oil abroad, stressing that the country has no reason to import fuel if existing laws are strictly implemented.

Dangote spoke during a visit by the South South Development Commission (SSDC) to the Dangote Petroleum Refinery and Fertiliser Complex in Lagos. He argued that the Petroleum Industry Act (PIA) already prioritises domestic crude allocation but is being weakened by loopholes exploited by operators.

According to him, several oil companies ship Nigerian crude to their trading subsidiaries, especially in Switzerland, compelling local refiners to buy back the same crude at a premium of four to five dollars per barrel.
“The crude is available. It is not a matter of shortage. But the companies move everything to their trading arms, and we are forced to buy at a premium. Meanwhile, we do not receive any premium for our own products,” he said.

Dangote revealed he has formally written to the Federal Government, urging it to compute royalties and taxes based on the actual price crude buyers pay. This, he said, will plug revenue leakages and discourage practices that disadvantage indigenous refiners.

He noted that while the Nigerian National Petroleum Company Limited (NNPC) remains the only supplier fulfilling domestic obligations—providing five to six cargoes monthly—the refinery requires up to twenty cargoes per month starting January to run at full capacity. He described the current situation as unacceptable for a nation committed to genuine industrial growth.

The industrialist lamented that Nigeria still imports fuel even after exporting about 1.5 million tonnes of gasoline in June and July. “It is shameful that while we exported one point five million tonnes of gasoline, imported products were flooding the country. That is dumping,” he said.

Reacting to a report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which stated that the refinery supplied only 17.08 million litres of the 56.74 million litres consumed in October 2025, Dangote warned that the refinery would continue to export its products if regulators allow dumping by marketers.

He pledged that the refinery will supply 50 million litres of petrol daily during the festive period, with a total of 1.5 billion litres planned for December 2025 and another 1.5 billion litres for January 2026. Dangote commended President Bola Tinubu’s Nigeria First Policy, but insisted legislative backing is required to solidify its effectiveness.

Dangote also highlighted Africa’s expanding fuel demand, estimated at about four million barrels per day, compared to regional refining capacity of under one and a half million barrels. He said Nigeria’s pursuit of a one trillion-dollar economy is achievable with disciplined policies, enhanced power generation, and revitalisation of the steel sector.

“You cannot build a great nation without power and steel. Every bolt and nut used here was imported. That should not be the case. Nigeria should be supplying steel to smaller African countries,” he said.

He expressed willingness to partner with the SSDC in agricultural development, emphasising the importance of soil testing and custom fertiliser blends to improve farmers’ productivity. “We are setting up advanced soil testing laboratories. From next year, we want to work with the SSDC to empower farmers by providing accurate soil assessments and customised fertiliser blends,” Dangote noted.

On the global transition to electric vehicles, Dangote maintained that Africa will continue to depend heavily on petroleum due to limited access to electricity. “People talk about electric vehicles, but six hundred million Africans do not have power for their fridge. Oil remains essential because over six thousand products come from it,” he said.

He reaffirmed the refinery’s commitment to strengthening Nigeria’s industrial base, supporting economic growth and ensuring the country becomes a net exporter of refined petroleum products and petrochemicals.