The Dangote Petroleum Refinery and Petrochemicals has explained the recent increase in its petrol exports, saying the development is driven by market uncertainty rather than an inability to satisfy Nigeria’s domestic fuel demand.
The refinery said its growing export volumes should not be interpreted as a reduction in its commitment to the Nigerian market.
In a statement, the company expressed concern over the continued issuance of licences for petroleum product imports despite its demonstrated capacity to meet and exceed Nigeria’s requirements for Premium Motor Spirit (PMS).
According to the refinery, maintaining large quantities of petrol in storage without reliable information on incoming imports creates significant financial and operational costs.
The company said it has consistently maintained adequate reserves since commencing operations to ensure uninterrupted fuel supplies across Nigeria.
“Maintaining large stock positions without clear visibility into import volumes imposes substantial carrying costs on the refinery and ultimately undermines efficient market operations,” the refinery said.
Dangote Refinery said available market data showed that imported PMS represented approximately 43 per cent of petrol supplied to the Nigerian market in July.
The company questioned the continued need for large-scale imports when substantial domestic refining capacity is already available.
It said its strategy of maintaining sufficient reserves has required considerable investments in storage facilities, logistics and working capital.
Those investments, according to the refinery, are aimed at protecting consumers from supply disruptions and excessive market volatility.
However, the company said the absence of clear information about future import volumes has made production planning and inventory management increasingly difficult.
Dangote Refinery explained that when products produced for the domestic market are not absorbed because of competing imports, the surplus must be moved elsewhere.
“Consequently, our export volumes have increased in recent months, not because local demand cannot be met, but because excess inventory generated by market uncertainty must be evacuated,” the company said.
It explained that exporting surplus products helps prevent unnecessary storage expenses and financing costs.
The refinery stressed that the development was therefore an operational response to prevailing market conditions rather than evidence of inadequate production capacity.
The company maintained that it remains committed to Nigeria’s energy security and uninterrupted fuel availability.
It said the presence of imported petrol in the domestic market has created uncertainty around demand forecasting and inventory management, making it commercially difficult to hold excess stock indefinitely.
Dangote Refinery said its exports should consequently not be viewed as a withdrawal from the Nigerian market.
Rather, the company described the exports as a practical response to a market where imported fuel continues to compete with locally refined products.
The refinery reiterated that it has the capacity and willingness to meet, and even surpass, Nigeria’s petroleum product requirements.
It also reaffirmed its commitment to continued investment in refining, storage and logistics infrastructure to support a stable and reliable fuel supply across the country.
