Aliko Dangote, the President and Chief Executive of Dangote Industries Limited, has criticized the methods used by international oil companies to supply crude oil, claiming that Nigeria could eliminate the need for crude or refined petroleum product imports if existing laws were properly enforced.
During a visit from the South South Development Commission (SSDC) at the Dangote Petroleum Refinery and Fertiliser Complex in Lagos, Dangote stated that the Petroleum Industry Act (PIA) has established a framework focusing on domestic crude supply. However, he noted that certain operators exploit loopholes that undermine the intended purpose of the law.
Dangote emphasized that several oil firms often redirect Nigerian crude to their trading subsidiaries abroad, particularly in Switzerland, forcing local refineries to acquire the crude from these international entities at a higher cost of four to five dollars per barrel.
“There is enough crude available. The issue isn’t scarcity. However, companies reroute it to their trading arms, and we end up purchasing it at a premium. Meanwhile, we don’t receive any premium for our own products,” he elaborated.
He disclosed that he has officially reached out to the Federal Government, urging it to apply royalties and taxes based on the actual price paid for crude in order to prevent revenue losses and deter practices harmful to local refiners.
Dangote indicated that the NNPC serves as the primary supplier that meets domestic supply obligations, providing five to six cargoes each month. However, to operate at full capacity, the refinery requires up to twenty cargoes monthly beginning in January.
He described the existing situation as “unsustainable for a nation striving for genuine industrial progress,” contending that Africa’s economic future relies on value addition rather than constant raw material exports.
“It is shameful that while we exported 1.5 million tonnes of gasoline in June and July, the nation was overwhelmed with imported products. That is what we call dumping,” he criticized.
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In response to a report from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which stated that the refinery contributed only 17.08 million litres of the 56.74 million litres consumed in October 2025, Dangote noted that the refinery exports its output if the regulators continue to permit dumping by marketers.
Dangote assured that the refinery would supply 50 million litres of petrol each day during the holiday season, with plans for a total of 1.5 billion litres for December 2025 and another 1.5 billion litres for January 2026.
He commended President Bola Tinubu’s Nigeria First Policy but stressed the importance of legislative backing to increase the effectiveness of the policy.
Dangote further explained that the company’s expansion efforts align with Africa’s rapidly growing demand for petroleum products, estimated at approximately four million barrels daily, even as regional refining capacity sits below one and a half million barrels.
Regarding Nigeria’s ambition to reach a one trillion-dollar economy, Dangote asserted that this goal is achievable through disciplined policy execution, improved power generation, and a revival of the steel industry.
“It is impossible to build a great nation without power and steel. Every bolt and nut used here has been imported, which shouldn’t be the case. Nigeria ought to provide steel to smaller African countries,” he stated.
He also pointed out opportunities for partnership with the SSDC in agriculture, particularly in soil testing and tailored fertiliser formulations, noting that fertiliser misuse is a major factor behind the low productivity gains among Nigerian farmers.
“We are setting up advanced soil testing laboratories. Starting next year, we plan to work with the SSDC to empower farmers by providing accurate soil assessments and custom fertiliser blends,” Dangote concluded.
