The Traffic

"Dangote Pushes for Fuel Independence as Tinubu Summons Key Players in Nigeria's Energy Crisis"

By Achimi Muktari

In a bold move towards solving Nigeria's fuel challenges, Aliko Dangote, Chairman of the Dangote Group, has called on petroleum marketers, including the Nigerian National Petroleum Company Limited (NNPCL), to source fuel directly from his refinery to meet local demand. This announcement came after a closed-door meeting with President Bola Tinubu, Finance Minister Wale Edun, and NNPC GMD Mele Kyari at Aso Rock Villa.

Dangote’s refinery, which has the capacity to produce over 30 million litres of fuel daily, holds a reserve of 500 million litres—enough to supply Nigeria for 12 days without imports. Despite this, fuel queues and soaring prices continue to plague cities like Lagos and Abuja, with prices exceeding N1,000 per litre in some areas.

Dangote’s Plan to End Fuel Scarcity

Following the meeting, Dangote expressed his frustration with the current import-dependent system, urging retailers to stop importing and purchase fuel from his refinery. “We have what they need. I am ready to pump, but they need to come forward and pick it up,” Dangote said. He further emphasized that storing such a vast reserve of fuel incurs costs, and the refinery is poised to meet national demand if the marketers cooperate.

This comes as the Nigerian Ports Authority (NPA) reported the arrival of a vessel carrying 20 million litres of petrol at Tincan Island Port, Lagos, amidst ongoing fuel shortages. The government attributes these disruptions to recent logistical challenges, but Dangote’s refinery is seen as a key solution.

The Shift to Naira-Based Crude Sales

The Federal Government's policy shift toward using the naira for crude oil and refined product sales took center stage in the discussions. Dangote revealed that President Tinubu directed both NNPC and independent marketers to buy petroleum at market-determined exchange rates and crude prices. Afreximbank will act as a settlement facilitator between Dangote's refinery, other refiners, and NNPC.

This marks a significant step toward self-reliance in Nigeria’s energy sector, moving away from costly imports and volatile foreign exchange issues. Minister of Finance Wale Edun highlighted that the move would stabilize NNPC’s finances, ensuring greater funding for public obligations like salaries and infrastructure.

Will Nigeria’s Fuel Crisis Finally End?

As Nigeria grapples with supply chain issues and price hikes, all eyes are on the Dangote Refinery and whether it can meet the nation’s fuel needs. With the government’s backing and a shift to market-driven pricing, many hope this will be the turning point in resolving the country’s fuel crisis.

With a refinery ready to pump and a government determined to change course, Nigeria may be on the brink of fuel independence.