Aliko Dangote has claimed that the refineries of the Nigerian National Petroleum Company Limited (NNPCL) are only capable of producing low-value premium motor spirit.
In a recent media interview, Dangote said NNPCL lacks the capacity to compete with his 650,000-barrel-per-day refinery. He warned that without revenue in the country’s downstream oil sector, investment in the industry would stall.
“If we don’t make money, nobody will enter this business. You end up with just one supplier because NNPC’s refineries can never compete. The market here is dominated by gasoline. Our production yields 54 per cent gasoline, while NNPC would achieve only 18 per cent, producing low-value fuel oil, which is largely unwanted today. That would be a loss. The more we operate, the more revenue is generated,” he said.
Dangote’s comments come as the Port Harcourt, Warri, and Kaduna refineries remain shut for maintenance and review. NNPCL Group CEO Bayo Ojulari recently confirmed that the company has no plans to sell the refineries.
Dangote also explained that he avoided entering fuel distribution over concerns of being accused of monopolistic practices. This follows a dispute with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) over unionisation of his drivers, during which NUPENG accused him of monopolising fuel distribution—a claim Dangote rejected.
