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Local refining under threat as PMS imports persist — Dangote

Chairman of Dangote Petroleum Refinery, Aliko Dangote has dismissed claims that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stopped issuing import licences for petrol. He said the agency continues to approve PMS importation, a situation he warns is undermining local refining and threatening Nigeria’s energy security.

Speaking in Lagos, Dangote noted that despite assurances of restricting fuel imports, refined products still flood the domestic market.

He cautioned that these imports could “cripple the Dangote Refinery and stall its expansion plans,” even though the facility can supply all of Nigeria’s petrol needs with its 75 million‑litre daily capacity.

Dangote noted that the continuous permits for PMS importation contradicts official statements from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which had promised to restrict fuel imports as local refining capacity improved.

“They are still issuing licences even though we can meet the domestic demand. Importation persists and is detrimental to our operations. We are exporting while others continue importing. Our refinery’s capacity is 75 million litres, yet back-loading remains,” Dangote stated.

Reports from the NMDPRA had indicated that, Matrix Energy, A.Y.M Shafa Ltd, A.A Rano, Pinnacle and NIPCO were still given licences to import fuel into Nigeria despite the nation’s self sufficiency in local refining.

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Dangote said: “for the avoidance of doubt, the crude supplied under the Naira-for-Crude arrangement is priced according to the global benchmark price plus a premium $3 to $6 which is then converted to naira using the prevailing market exchange rate. These impact the price of PMS”

His position came in the wake of remarks from the downstream regulatory Agency that it had suspended new licences for petrol importation on the grounds that domestic refining now meets a substantial portion of Nigeria’s needs. The regulator claimed this approach aligns with the Petroleum Industry Act (PIA), which allows fuel import licences only when local production is insufficient.

NMDPRA had reported that no new petrol import licences have been issued in 2026, citing the adequacy of supplies from domestic refineries, particularly the Dangote Petroleum Refinery.

However, recent data from January 2026 show that 24.8 million litres of imported petrol were consumed daily, with February figures declining significantly by 3 million litres per day. NMDPRA reiterated that import permits would only be reinstated should domestic output fall short, emphasizing the goal of bolstering local refining and reducing reliance on foreign products.

Dangote further alleged that many companies engaged in petrol importation have few or no retail outlets or filling stations, suggesting possible diversion or smuggling of products upon arrival in Nigeria. He warned that continuation of these practices may replicate challenges faced in the rice industry, where excessive imports disrupted local agriculture.

“When petroleum products are imported, they are often smuggled to neighboring countries as some of the importers don’t have filing stations. This situation negatively impacts us and mirrors past issues in the rice sector, which harmed local farmers. Priority should be given to job creation and energy security”, Dangote asserted.

He referenced the situation in the United States saying: The US government is trying to protect its local manufacturing industries , the jobs of its citizens and add to its GDP by imposing huge tariffs on countries dumping goods in the US. It is quite unfortunate that Nigeria is still importing Petroleum Products into the country , in spite of the fact that we have enough Petroleum Refining capacity , not only to meet 100% requirements of the country but also to export a substantial quantity of the petroleum products to other countries.

“All the countries facing the tariffs are either compromising or resisting it to protect their own manufacturing industries too, the job of their citizens and the value addition to their respective economies.

“In Nigeria, we have the laws, the Petroleum Industries Act, clearly states that import licenses can be given ONLY to bridge the gap between the local refining capacity and the demand, if there is any. Yet, in gross violation of the law, the Petroleum Importing companies have been given import licenses to import and dump Petroleum Products into the county. We are neither protecting the local industries nor abiding by the laws of the country, by issuing these import licenses.”

Historically, Nigeria’s fuel supply has depended heavily on imports because of underperforming state-owned refineries. However, optimism has grown since the inauguration of the Dangote refinery, which boasts a nameplate capacity of 650,000 barrels per day, making it the world’s largest single-train refinery. The facility plays a central role in Nigeria’s objective to end its longstanding dependence on imported refined products.

STREETNET