There is an ongoing controversy over the actual volume of Nigeria’s daily petrol consumption, with experts and industry stakeholders holding differing views amid claims of data inflation by the Dangote Group president, Alhaji Aliko Dangote.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) estimates the nation’s petrol consumption at around 50 million litres daily, a figure disputed by Dangote, who argues the true figure is closer to 33 million litres—17 million litres less—and alleges that previous data were inflated for corrupt gains, especially during the fuel subsidy era.
Dangote, speaking during a recent visit to the Dangote Petroleum Refinery by Global CEO Africa members, criticised the petroleum sector for pervasive corruption, describing it as a “mafia business” he initially hesitated to enter, Punch reports.
He emphasised that Nigeria does not consume up to 40 million litres daily as officially reported and said inflated consumption figures were used to siphon funds when fuel was subsidised, at times purportedly up to 90 million litres daily—far beyond the capacity implied by Nigeria’s vehicle population.
Though the primary source of data rests on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), however, the Nigerian Bureau of Statistics (NBS) and the Central Bank of Nigeria (CBN), issues data regarding import and consumption rates.
Also, crude oil refiners said there should be fresh findings to determine the country’s real consumption figure; otherwise, the debate and argument would continue.
Reacting to the allegation, a lawyer and energy expert, Taiwo Ogunloye, of the Institute of Energy and Extractive Industry Law, notes that the NMDPRA plays a crucial role in ensuring energy security under the Petroleum Industry Act (PIA).
According to Ogunloye, the PIA empowers NMDPRA to implement market-driven policies, including deregulation and price liberalisation, fostering a competitive market and attracting investment. The NMDPRA also ensures adequate product supply, mitigates the negative effects of subsidy removal, and promotes a stable and secure energy sector.
He said that a more accurate figure of the nation’s petrol consumption should be sourced from the agency, because it holds permit holders and licensees to account.
“However, Dangote is an operator and may have some figures in his disposal but that may be limited in scope because the NMDPRA has the duty and responsibility as well as capacity to provide accurate information on the actual marketer situation” he told LEADERSHIP in a telephone conversation.
He said NMDPRA could also contradict Dangote’s claim but expressed reservations because the use of the word ‘Corruption’ is serious and could only be substantiated with proof which might be at the accuser’s disposal.
