Africa’s richest businessman, Aliko Dangote, says fuel queues in Nigeria and neighbouring countries will soon end. He spoke after meeting President Bola Tinubu at the Presidential Villa in Abuja.
Dangote said his refinery now produces 50 million litres of Premium Motor Spirit (PMS) daily. The company has informed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of this capacity. He explained that Nigeria’s reliance on imported fuel caused scarcity since the 1970s, but local refining has changed this dynamic.
Neighbouring Countries to Receive Surplus Supply
Nigeria’s daily PMS demand will soon be exceeded by 15 million to 20 million litres, Dangote said. This surplus will allow steady exports to neighbouring countries. Local manufacturers, especially in plastics, will source feedstock domestically, potentially saving Nigeria up to $400 million annually.
Refinery to Expand to 1.4 Million Barrels Per Day
Dangote plans to expand the Lekki refinery to 1.4 million barrels per day by 2028, surpassing India’s Reliance refinery at 1.25 million barrels per day. He said foundation piling for the expansion will start before the end of January.
Nigeria Targets Global Leadership in Urea Production
Dangote aims to raise urea output to 12 million tonnes annually, putting Nigeria ahead of Russia and Qatar. The goal is to make Nigeria Africa’s leading fertiliser supplier.
Fuel Prices Easing on Competition, Lower Smuggling
He linked recent petrol and diesel price drops to stronger market competition and reduced cross-border smuggling. Nigeria’s fuel prices remain lower than in neighbouring countries, creating arbitrage pressure. Dangote emphasized the refinery focuses on long-term investment, not short-term profit.
Deep-Sea Port to Boost Solid Minerals Exports
Dangote announced plans for a deep-sea port at Olokola to reduce congestion at Nigerian ports. He expects completion in two to two-and-a-half years. He said export infrastructure limitations have slowed commercialisation of Nigeria’s solid minerals.
Support for Naira-for-Crude, Crude Supply Remains Challenging
Dangote supports the Federal Government’s naira-for-crude policy to strengthen the domestic economy. He acknowledged difficulties in securing crude from international oil companies. Nigerian crude trades at a premium, which may require regulatory or legislative intervention.