Dangote Denies Fuel Storage Misrepresentation Amid NNPC Tensions
Allegations have surfaced accusing Aliko Dangote of misleading President Bola Ahmed Tinubu regarding fuel storage capacity and pricing at Dangote Refinery. Sources close to recent discussions between Dangote and Tinubu claimed that the businessman informed the president of having 500 million litres in storage, while reportedly lobbying for NNPC to buy his petrol at ₦990 per litre.
According to insider information, Dangote is currently selling Premium Motor Spirit (PMS) from his refinery with strict purchasing requirements: a minimum order of 1 million litres at ₦990 per litre, to be prepaid. For larger orders involving vessel transportation, customers must buy at least 15,000 metric tonnes (approximately 20 million litres) at ₦971 per litre. Including associated costs, such as vessel chartering, port fees, and depot discharge, private depot owners face a landing cost of ₦1,031 per litre, making it difficult to compete with Dangote’s pricing.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed their inability to purchase fuel at such high costs, with a 1 million-litre purchase costing ₦990 million. Private depot owners are reportedly struggling, with Femi Otedola suggesting some may need to consider selling their depots as scrap.
Sources allege that Dangote is targeting the Nigerian National Petroleum Company (NNPC) Limited as his primary customer, aiming for NNPC to distribute his refinery’s fuel across the market. Reports claim he requested President Tinubu to push NNPC into purchasing fuel exclusively from his refinery. However, Tinubu reportedly clarified that NNPC would only buy at competitive rates, similar to other oil companies like Total and 11 PLC.
During these talks, Dangote reportedly struggled to specify fuel volumes in his reserves and expressed uncertainty over the naira-to-dollar exchange rate, to which Tinubu responded that a businessman of his stature should be adept without needing external guidance.
Furthermore, Dangote allegedly requested the government to fix the foreign exchange rate, a request that was flatly declined by President Tinubu. The meeting was attended by representatives from the African Export-Import Bank (Afreximbank), who reportedly sought to protect their investments in the refinery by encouraging foreign exchange discounts and subsidies for Dangote.
The current NNPC management is said to be pushing back against these pressures, leading to rumours that management replacements may be considered if resistance continues. This ongoing standoff underscores the tensions between Nigeria’s private and public sectors, as each navigates the evolving landscape of the nation’s fuel market. 18 Vessels Scheduled to Berth at Lagos Ports, Says NPA
