The President/Chief Executive of Dangote Industries Limited, Aliko Dangote, has launched a blistering critique against international oil companies (IOCs), accusing them of exploiting loopholes in the Petroleum Industry Act (PIA) to divert Nigerian crude abroad, thereby undermining domestic refining capacity and forcing local operators to pay exorbitant premiums.
Speaking during a visit by the South South Development Commission (SSDC) to the Dangote Petroleum Refinery and Fertiliser Complex in Lagos, Dangote asserted that Nigeria has no economic or legal justification for importing crude or refined petroleum products if the nation’s existing laws were properly enforced.
“The crude is available. It is not a matter of shortage,” Dangote explained, detailing the operational flaw.
“But the companies move everything to their trading arms, and we are forced to buy at a premium of four to five dollars per barrel. Meanwhile, we do not receive any premium for our own products.l,” Dangote stated.
He described the routine diversion of Nigerian crude to offshore trading subsidiaries, particularly in Switzerland, as a deliberate exploitation of regulatory gaps that significantly disadvantage local refiners.
Dangote revealed that he has formally petitioned the Federal Government, urging it to impose royalties and taxes based on the actual price paid for crude.
This measure, he believes, is essential to prevent substantial revenue losses and discourage the detrimental trading practices.
The business mogul highlighted the critical imbalance in crude supply facing the continent's largest refinery.
While the Nigerian National Petroleum Company (NNPC) remains the primary supplier, honouring its Domestic Supply Obligation (DSO) with five to six cargoes monthly, the Dangote Refinery requires a minimum of twenty cargoes per month starting in January to operate at optimal capacity.
Dangote described the current situation as “unsustainable for a country intent on genuine industrial growth,” emphasising that Africa’s future economic stability hinges on value addition rather than the perpetual export of raw materials.
“It is shameful that while we exported one point five million tonnes of gasoline in June and July, imported products were flooding the country. That is dumping,” he stated.
Addressing a recent report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which noted the refinery supplied only 17.08 million litres of the 56.74 million litres consumed in October 2025, Dangote confirmed that the refinery would not hesitate to export its products if regulators continue to permit market dumping by marketers.
He, however, pledged to significantly increase domestic supply during the crucial Yuletide period, with a commitment to supplying 50 million litres of petrol daily, totalling 1.5 billion litres for December 2025 and another 1.5 billion litres for January 2026.
Dangote commended President Bola Tinubu’s Nigeria First Policy but stressed the urgent need for legislative action to make the policy effectively binding and enforceable.
He reiterated the President's commitment to transforming Nigeria into a value-added production leader, driving job creation and sustainable economic expansion.
Dangote then pivoted to Nigeria’s ambitious target of achieving a one trillion-dollar economy, arguing that this goal is attainable only through disciplined policy execution, significant improvements in power generation, and a critical revival of the steel sector.
“You cannot build a great nation without power and steel. Every bolt and nut used here was imported.
*That should not be the case. Nigeria should be supplying steel to smaller African countries,” Dangote argued.
The company’s expansion strategy, Dangote noted, is driven by the region’s fast-growing demand for petroleum products, estimated at four million barrels per day, far exceeding the current regional refining capacity of under one and a half million barrels.
Beyond energy, Dangote underscored opportunities for strategic partnership with the SSDC in the agricultural sector, focusing specifically on soil testing and customised fertiliser formulation.
He noted that the misuse of generic fertiliser blends is a primary reason Nigerian farmers often see limited productivity gains.
“We are setting up advanced soil testing laboratories. From next year, we want to work with the SSDC to empower farmers by providing accurate soil assessments and customised fertiliser blends,” he pledged.
Dangote touched upon the future of energy in Africa. While the global north pushes for electric vehicles, he noted that oil products will remain essential for the continent due to widespread power limitations and affordability challenges.
“People talk about electric vehicles, but six hundred million Africans do not have power for their fridge. Oil remains essential because over six thousand products come from it,” he said.
Dangote reaffirmed the refinery’s commitment to achieving self-sufficiency for Nigeria, strengthening local industry, and ensuring the nation becomes a net exporter of refined products and petrochemicals.
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