Devakumar V.G. Edwin, Vice President of Dangote Industries Limited, has expressed disappointment over the limited patronage of Dangote Refinery’s products by local marketers.
Despite the refinery’s large production capacity, only about 3% of its output is being purchased locally, while the remaining 97% is exported due to a boycott by Nigerian traders who prefer to import refined products instead.
Speaking during an X Space session, Edwin highlighted that the refinery was established with the intent of utilizing Nigeria’s local crude oil to reduce dependency on imported petroleum products.
He explained that local traders’ refusal to buy from the refinery has hindered its original goal of supplying the Nigerian market and forced the company to turn to international markets.
“We should be able to refine and use the finished products within Nigeria and produce more to export the surplus,” Edwin noted, emphasizing the refinery’s potential to serve the domestic market.
According to Edwin, some marketers are intentionally obstructing the refinery’s efforts by continuing to import products, and they have even written to President Bola Tinubu, accusing the refinery of disrupting the market with its lower pricing strategies.
Since local traders are blocking the distribution of Dangote’s products, the refinery has had to export most of its diesel and jet fuel. Edwin noted that the refinery, which has a capacity of 54 million liters of refined petroleum products per day, is sufficient to meet Nigeria’s entire demand with just 44% of its output.
However, the lack of consistent local crude supplies, along with international oil companies (IOCs) prioritizing foreign markets, has forced the refinery to rely on imported crude from countries such as the U.S. and Brazil.
The Dangote Refinery began operations in March 2024, supplying diesel and aviation jet fuel in April. It is expected to start supplying premium motor spirit (PMS) this month.
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