Dangote Raises Alarm Over Crude Diversion
…Says Local Refineries Forced to Buy at Premium
By Patience Ikpeme
President and Chief Executive of Dangote Industries Limited, Aliko Dangote, has accused several international oil companies of diverting Nigerian crude oil to their trading subsidiaries abroad, mainly in Switzerland, thereby compelling domestic refineries to purchase the same crude at a premium of four to five dollars per barrel.
Dangote said such practices contradict Nigeria’s economic interests and persist only because existing regulations are not being strictly enforced. “Nigeria has no reason to import crude or refined products if our laws are followed. The Petroleum Industry Act already provides for domestic crude supply, but loopholes are being exploited,” he said.
He spoke in Lagos during a visit by the South South Development Commission (SSDC) to the Dangote Petroleum Refinery and Fertiliser Complex, where he explained that the country’s crude supply challenges are artificial rather than real. According to him, operators are prioritising offshore trading entities in ways that sidestep the intent of the law.
“The crude is available. It is not a matter of shortage. But the companies move everything to their trading arms, and we are forced to buy at a premium. Meanwhile, we do not receive any premium for our own products,” he said.
Dangote revealed that he has written formally to the Federal Government, urging it to calculate royalties and taxes based on the actual prices paid for crude. He said this would plug revenue leakages and disincentivise practices that push local refineries to the margins.
He said the Nigerian National Petroleum Company (NNPC) has so far remained the primary supplier meeting domestic supply obligations, providing five to six cargoes each month. But he warned that the refinery needs at least twenty cargoes monthly from January to operate at full capacity.
Describing the current situation as “unsustainable for a country intent on genuine industrial growth,” Dangote insisted that Africa must embrace value addition to unlock its economic future. “It is shameful that while we exported 1.5 million tonnes of gasoline in June and July, imported products were flooding the country. That is dumping,” he said.
Responding to a recent report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which stated that the refinery supplied only 17.08 million litres of the 56.74 million litres consumed in October 2025, Dangote maintained that the refinery will continue exporting if regulators allow imported products to dominate the market.
He assured that the refinery is prepared to supply 50 million litres of petrol per day during the Christmas season, with plans to deliver 1.5 billion litres in December 2025 and an additional 1.5 billion litres in January 2026.
Dangote praised President Bola Tinubu’s Nigeria First Policy but noted that stronger legislative support is required to ensure its sustainability. He said the President is committed to positioning Nigeria as the African leader in transitioning from raw material export to value-added production, job creation and long-term economic expansion.
He said the company’s expansion strategy aligns with Africa’s rapidly rising demand for petroleum products, estimated at about four million barrels per day, while current refining capacity on the continent remains below one and a half million barrels.
Dangote also spoke on Nigeria’s goal of becoming a one trillion-dollar economy, describing it as realistic if policy consistency is maintained and urgent gaps in power generation and steel production are addressed. “You cannot build a great nation without power and steel. Every bolt and nut used here was imported. That should not be the case. Nigeria should be supplying steel to smaller African countries,” he said.
He outlined opportunities for collaboration with the SSDC in agriculture, particularly in soil testing and customised fertiliser formulation, noting that improper fertiliser use is one of the major reasons farmers achieve low yields. “We are setting up advanced soil testing laboratories. From next year, we want to work with the SSDC to empower farmers by providing accurate soil assessments and customised fertiliser blends,” he said.
On global energy trends, he argued that despite discussions around electric vehicles, Africa will continue to depend heavily on petroleum products due to widespread energy poverty. “People talk about electric vehicles, but six hundred million Africans do not have power for their fridge. Oil remains essential because over six thousand products come from it,” he said.
Dangote restated the refinery’s commitment to supporting national economic growth, strengthening local industries and ensuring that Nigeria becomes a net exporter of refined petroleum products and petrochemicals.
