KEY POINTS
- Imported petrol accounted for about 43% of Nigeria’s PMS supply in July.
- Dangote Refinery says continued imports are complicating production and inventory planning.
- The company wants greater transparency and policies that support domestic refining and reduce foreign exchange pressure.
Dangote Petroleum Refinery and Petrochemicals has raised concerns about the continued importation of Premium Motor Spirit (PMS), commonly known as petrol, despite the growing capacity of domestic refineries to supply the Nigerian market.
The refinery said the sustained arrival of imported petrol is creating uncertainty for local producers, particularly in forecasting demand, planning production and managing inventories.
According to market data cited by the company, imported petrol accounted for about 43 per cent of total PMS supplied to Nigeria in July 2026.
Dangote Refinery said the scale of petrol imports raises questions about the continued issuance of import licences at a time when its facility has the capacity to meet and exceed Nigeria’s domestic petrol requirements.
The company maintained that it has consistently kept sufficient fuel inventories and reserved product volumes to ensure that consumers across the country do not experience supply disruptions.
However, it said maintaining these reserves requires substantial investment in storage infrastructure, transportation and working capital.
The refinery argued that the absence of clear information about the volume and timing of imported petrol makes it increasingly difficult to determine how much fuel it should produce and store for the domestic market.
Imported fuel creates inventory challenges
Dangote Refinery explained that producing large quantities of petrol becomes commercially challenging when imported products enter the market unexpectedly and reduce demand for locally refined fuel.
When locally produced products remain unsold for extended periods, the company has to continue paying for storage and financing, increasing the cost of holding the inventory.
The refinery said this situation could make it difficult to maintain large reserves indefinitely while imported petrol continues to compete with locally refined products.
It stressed that the issue is not a lack of production capacity but rather uncertainty over how much of the domestic market will ultimately be supplied by local refineries and how much will come from imports.
Dangote Refinery also explained the recent increase in its petrol exports, saying the development should not be interpreted as evidence that Nigeria lacks adequate domestic fuel supply.
According to the company, when locally refined products cannot be absorbed by the Nigerian market because of the influx of imported fuel, exporting the surplus becomes a practical option.
The refinery said increased exports are therefore partly a response to market conditions and uncertainty surrounding future imports.
It reiterated that it has continued to maintain reserves to meet local demand and remains committed to ensuring uninterrupted fuel availability.
The refinery called for improved transparency and coordination among stakeholders in Nigeria’s downstream petroleum sector.
It said greater visibility over planned imports would allow domestic refiners to better align production with actual market demand, improve inventory management and reduce unnecessary costs.
The company also urged policymakers to adopt measures that encourage domestic refining and strengthen Nigeria’s energy security.
