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Economic Issues > Blog > Uncategorized > ‘End Fuel Imports, Dangote Can Supply’: Expert Urges Action
Uncategorized

‘End Fuel Imports, Dangote Can Supply’: Expert Urges Action

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By Reporter February 9, 2025
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‘End Fuel Imports, Dangote Can Supply’: Expert Urges Action

By Patience Ikpeme 

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Energy expert Dan Kunle has strongly criticized the continued large-scale importation of petrol and diesel by the Nigerian National Petroleum Corporation (NNPC) Limited and other marketers, calling it a “disservice” to the nation, especially given the operational capacity of the Dangote Petroleum Refinery.

 

Kunle, speaking on Arise TV on Sunday, likened the current situation to the “cement Armada” scandal of the 1970s, where an oversupply of imported cement caused severe port congestion. He expressed dismay that despite President Bola Tinubu’s directive and the Federal Executive Council’s October 2024 decision to prioritize local crude allocation to domestic refineries, including Dangote Refinery, imports continue unabated.

 

“I was expecting a transition following the Federal Executive Council’s decision…to allocate local crude to domestic refineries, with Dangote Refinery being the key player due to its technical capacity,” Kunle stated. “However, the situation hasn’t changed, and we’re still seeing a massive influx of imported fuel. It’s still a full import Armada, similar to the cement Armada.”

 

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Kunle questioned the motives behind the continued imports, raising concerns about market manipulation, the potential introduction of substandard fuel, and possible attempts to undermine Dangote Refinery’s operations. “The level of imports we’re witnessing is unprecedented, raising serious concerns about what’s really going on,” he said. “Is it an attempt to flood the market, introduce substandard fuel into Nigeria, and possibly frustrate Dangote Refinery?”

 

He emphasized the incongruity of importing fuel when a domestic refinery like Dangote, with a capacity of 550,000 barrels per day, is producing high-quality products. “This importation is completely unnecessary,” he asserted. “It’s time to urge the president to act and end this petrol import racket once and for all.”

 

Kunle argued that the continued reliance on imports defies logic, especially when other nations, like the United States, prioritize protecting their domestic industries. He stressed that Dangote Refinery represents a crucial opportunity for Nigeria to achieve energy security, a goal that regulatory authorities have long neglected.

 

He urged President Tinubu to demand a clear transition timetable from relevant agencies, outlining the path from fuel importation to self-sufficiency and eventual net export status. He described Dangote Refinery as a “national strategic asset” and called for the government to remove any obstacles to its smooth operation.

 

“The Dangote Refinery is a national strategic asset,” Kunle emphasized. “There’s no need for a court case. The federal government should step in. We don’t need a legal battle; the government should ask NMDPRA for a transition timetable to move us from importing petrol to self-sufficiency.”

 

Kunle warned that inaction on this issue would harm the country and discourage future investments. “If the president stays aloof, it will harm the country. No new investments will come if you treat an investment like Dangote’s as an enemy. The importers are the true enemies,” he declared.

 

He reiterated that with Dangote Refinery’s capacity, along with the reported revitalization of the Port Harcourt and Warri refineries, Nigeria should be actively transitioning from fuel imports to becoming a net exporter of refined petroleum products. The continued reliance on imports, he argued, is a significant disservice to the Nigerian people and a missed opportunity for economic growth and energy independence.

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Reporter February 9, 2025 February 9, 2025
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