Billionaire businessman, Aliko Dangote, Chairman of the Dangote Group, assured Nigerians that the new Dangote refinery, which has the capacity to process 650,000 barrels of crude oil per day, will accurately track the country’s true fuel consumption.
This statement comes as a significant development following years of controversy and confusion over Nigeria’s fuel usage.
The issue of fuel consumption in Nigeria has been a contentious topic, with disputes over the actual amount of petrol consumed daily.
In 2022, the debate heated up when Colonel Hammed Ali (rtd), the then Comptroller General of the Nigeria Customs Service (NCS), questioned the Nigerian National Petroleum Corporation’s (NNPC) claim of 60 million litres of daily consumption.
Ali claimed that NNPC was releasing up to 98 million litres from its depots every day, raising concerns about fuel smuggling and subsidy payments.
Dangote’s refinery is set to bring clarity to this issue. During the official rollout of petrol from the refinery on Tuesday, Dangote highlighted the role of the new facility in addressing these discrepancies.
He stated, “With the refinery working, it will be easy to know the true figure of Nigeria’s fuel consumption.”
According to Dangote, the refinery’s advanced systems will allow for detailed tracking of fuel distribution.
He explained, “We can track every single loaded truck and try as much as possible to track loaded ships.”
This tracking capability is expected to curb fuel smuggling and ensure that fuel delivered to the market matches the recorded consumption figures.
Dangote also touched on the economic benefits of the refinery, particularly the potential impact on Nigeria’s currency. He praised the initiative of “Naira for crude” and “Naira for the product,” which he believes will stabilize the Naira by reducing the demand for dollars in the market.
“You remove 40% of the demands of dollars in the market and that would actually stabilize the market,” Dangote said.
The Dangote refinery is also seen as a major step towards addressing the long-standing issue of fuel smuggling.
In Nigeria, smuggling and fraudulent activities have plagued the fuel distribution system, leading to substantial financial losses.
Dangote’s comments reflect a commitment to reducing these illegal practices.
“There’s quite a lot of what you call round trip where people are now doing documentation and the fuel does not come into Nigeria,” he noted.
The refinery’s ability to track fuel distribution is expected to mitigate these issues significantly.
“Today’s discussion is just to celebrate and thank God Almighty for bringing us to this stage of now producing gasoline,” he said.
He also acknowledged the skepticism faced during the project’s development, asserting that the successful rollout of petrol is a testament to the project’s success.
