Dangote Refinery has announced that it will be forced to export a significant portion of its petrol production due to low demand from Nigerian marketers.
The refinery, which has a capacity of 650,000 barrels per day, revealed that only a small percentage of petrol marketers are willing to buy its products.
According to Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, only 3 to 5 percent of marketers are interested in purchasing petrol from the refinery.
Edwin disclosed this information during an X Space session organized by Nairametrics, where he discussed the challenges facing the Dangote Refinery and the oil and gas sector.
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He stated that the refinery is currently selling only 2 to 3 percent of its petrol to small traders who are willing to buy.
The remaining 95 to 97 percent of the refinery’s petrol production will be exported due to the low demand from Nigerian marketers.
This development comes as the Nigerian National Petroleum Company Limited (NNPCL) is set to lift Dangote Refinery’s fuel without a clear plan in place.
The President of Dangote Group, Aliko Dangote, had previously announced the rollout of Dangote Refinery’s first petrol products, but noted that distribution to marketers depends on the NNPCL.
The low demand from Nigerian marketers raises concerns about the country’s ability to utilize its own petroleum products, forcing the refinery to export the majority of its production.
