The standoff between Dangote Refinery, led by billionaire Aliko Dangote, and Nigeria’s local fuel marketers has reached a new boiling point, directly impacting Nigerian consumers.
Aliko Dangote, CEO of the 650,000 barrels per day refinery, has insisted that there is no fuel shortage, claiming his facility currently holds 53 million liters of petrol.
He urged marketers to collect fuel directly, stating, “I’m expecting either NNPC or marketers to stop importing and come to collect. We have what they need.”
He expressed discontent over the costs of holding large stocks, adding, “If I could collect the naira today, I’d charge someone 32 percent interest. Right now, that’s my loss of 500 million liters.”
However, local marketers, represented by groups such as the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN), have voiced concerns that relying solely on Dangote’s refinery could drive prices even higher.
Dr. Joseph Obele, PETROAN’s Publicity Secretary, warned that imported fuel could hit around N800 per liter, suggesting that PETROAN would offer competitive prices, potentially lower than both Dangote and NNPC.
In response, Dangote argued that pricing below market rates would be unsustainable in a deregulated environment, insinuating that only substandard fuel could be sold at such low prices.
Energy analysts point out that the current crisis has roots in the recent deregulation of Nigeria’s fuel market, a policy shift intended to create a more competitive market landscape and attract private sector investment.
