Fuel Smuggling Still High, But Queues Gone Forever – Dangote

President of Dangote Group, Aliko Dangote,  has said Nigeria has finally overcome decades-long fuel scarcity, adding that the era of nationwide queues is now history as the Dangote Refinery can now fully supply the country’s petrol needs.

He spoke to State House correspondents yesterday after a meeting with President Bola Tinubu at the Presidential Villa, Abuja.

Dangote said Nigeria had experienced fuel queues since 1972 but noted: “We have actually removed those queues. It’s not about actually relying on imports. For the first time, we’re actually suppliers to Europe and US.”

He said the refinery had formally notified the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of its capacity to keep the domestic market fully supplied.

“Today, we have written to NMDPRA… and we have confirmed to him that we can supply 50 million every day, and you know, that won’t be queues at all… the question of getting queues is history. It will never, ever happen by the grace of God, no more,” he said.

Dangote added that neighbouring African countries would also benefit from the refinery’s output.

“Even our neighbouring countries, they won’t have queues at all, because they can buy from us… By February, we’ll be able to supply about 15 to 20 million litres more than the consumption of Nigeria. So we still have to export,” he said.

He said local industries, including plastic manufacturers that previously spent $350 to $400 million to import would now be fully serviced domestically.

Dangote announced an expansion that will take the refinery beyond the current global leader, Reliance of India.

“By 2028 we are going to take this refinery to the largest refinery in the world… Reliance is 1.25 million barrels per day, we will be at 1.4 million barrels per day. We have already launched that… and it will be delivered on time,” he said.

On fertiliser production, Dangote said: “We want to use our own fertiliser company here in Nigeria to supply the entire African continent… We’re going to have urea production of about 12 million tons… bigger than Russia and bigger than Qatar.”

Responding to questions on recent price reductions, he said: “Prices are going down. The reason why prices have to go down, we have to also compete with imports.”

But he warned that smuggling remained a persistent challenge, saying, “Smuggling has reduced, not totally… because the price we have in Nigeria is about 55% [of] the price of our neighbouring countries… They are selling at almost 1500, 1600, but we’re selling at about 800 and something.”

Despite these distortions, he assured that fuel will remain affordable: “Petroleum products will continue to be sold in the market at a very reasonable price. We are not here to make our $20 billion back quickly. It’s a long-term investment.”

Dangote strongly defended the Nigeria First policy, saying, “Importing anything… is importing poverty and exporting jobs out.”

He praised President Tinubu for introducing the naira-for-crude arrangement, describing it as a patriotic partnership.

“It is me being a Nigerian. It is a win-win thing… I must thank His Excellency, Mr President, for having that genius thinking.”

However, he acknowledged challenges in securing crude locally.

“Nigeria crude sells at a premium… some of the international oil companies are not really ready and willing to sell for us… But it’s a teething problem.”

Dangote highlighted the constraints facing Nigeria’s solid minerals exporters due to congested ports in Lagos.

“Apapa is full. Tincan Island is full. Lekki is only container… There’s nowhere you can take coal… or copper.”

He said this is why the group is developing the Olokola Deep Sea Port, which he described as:the biggest, largest port… and we will deliver it within the next two and a half years.”

Dangote urged wealthy Nigerians to prioritise industry over luxury, saying, “If you have money for Rolls Royce, you should go and put up an industry.”

He also stressed that businesses must pay taxes: “Anytime you have a company, the number one shareholder is government… We must make sure that we pay our taxes… I cannot be cheating my partner.”

He argued that domestic, not foreign, investors would drive Nigeria’s development, saying, “There’s no foreign investor that will come here… The invitation of calling investor is a domestic investor.”

On his visit to the State House, Dangote said it was routine and informal.

“It went very well… just normal greeting, normal catch up. Once in a while, I sit down with His Excellency. We discuss about economy, the environment and all. It was very nice, fruitful meeting.”