Abuja — Erstwhile President of the Nigerian Association of Chambers of Commerce of Industry, Mines and Agriculture (NACCIMA), Dele Oye, yesterday said the Dangote Petroleum Refinery has the capacity to save Nigeria over N15 trillion annually in fuel import costs.
Besides, Oye, who is the Chairman of the Alliance for Economic Research and Ethics LTD/GTE, stated that the 650,000 barrels per day facility can generate an estimated $11 billion in foreign exchange inflows through local refining and petroleum exports.
Oye, in a statement, emphasised that Nigeria continues to incur massive foreign exchange losses due to its dependence on imported refined petroleum products, despite the operational capacity of the Dangote Petroleum Refinery.
The former Chairman of the Organised Private Sector of Nigeria (OPSN) noted that the continued defence of the Nigerian National Petroleum Company Limited (NNPC Ltd) of fuel import licences undermines Nigeria's drive toward energy self-sufficiency and economic sovereignty.
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Oye explained that Nigeria spent approximately N15.42 trillion on petrol imports in 2024, describing the figure as a significant drain on foreign exchange reserves and a structural weakness in the country's energy architecture.
According to him, the Dangote Refinery has the ability to meet over 90 per cent of Nigeria's domestic fuel demand and could significantly reduce import dependence if fully integrated into the national supply system.
Oye further estimated that increased reliance on local refining could save Nigeria up to $11 billion annually in foreign exchange outflows, reducing pressure on the naira and improving macroeconomic stability.
He argued that NNPC's justification for continued fuel importation on the grounds of maintaining competition is flawed, insisting that it effectively entrenches dependency on foreign refineries while discouraging domestic industrial growth.
"NNPC's insistence on maintaining import licences for foreign-sourced products while a domestic facility can meet demand is tantamount to penalising the player who built the stadium while rewarding those who merely show up to play," Oye said.
He maintained that Nigeria's legal framework, including the Petroleum Industry Act (PIA) 2021 and the Nigerian Oil and Gas Industry Content Development Act, prioritises domestic refining and local value addition, adding that imports are intended only as a short-term measure where local capacity is insufficient.
Besides, Oye questioned the consistency of NNPC's position, noting that while the company raises concern about monopoly risks from a private refinery, it continues to rely heavily on foreign supply chains for domestic fuel consumption.
He added that sustained fuel importation exposes Nigeria to global price volatility, foreign exchange pressure, and job losses in the domestic economy, while exporting value-added opportunities to foreign refiners and logistics operators.
He further called for a review of import licensing under the PIA, stronger protection for domestic refineries, and fiscal incentives to encourage additional private sector investment in refining infrastructure.
Oye also urged greater transparency in refinery rehabilitation projects and called for accountability in past turnaround maintenance expenditures, arguing that inefficiencies in state-owned refineries have contributed to prolonged import dependence.
He also referenced global models from countries such as Brazil, Saudi Arabia, India and the United States, where domestic refining capacity is protected and supported through targeted industrial policies. According to him, Nigeria risks undermining its industrialisation agenda if it fails to prioritise local refining capacity over import dependence, despite existing domestic production capability.
"The Nigerian National Petroleum Company Limited (NNPC Ltd) has, in recent court filings, accused Dangote Petroleum Refinery, a $20 billion, 650,000 barrels-per-day facility, Africa's largest single-train refinery, of seeking to monopolise Nigeria's fuel market. The state oil company's argument: that restricting fuel import permits would 'undermine competition and expose Nigeria to supply disruptions, price instability and threats to national energy security'.
"This position, articulated with the gravitas of institutional authority, conceals a devastating truth: NNPC is not defending competition. It is defending importation. It is not protecting energy security. It is perpetuating dependency. And in doing so, it stands in direct contravention of Nigeria's own laws, the President's economic agenda, and the hard-won lessons of nations that have successfully industrialized their petroleum sectors."
"The Dangote Petroleum Refinery represents what is possible when Nigerian capital, vision, and perseverance confront adversity. Built at a cost of approximately $20 billion, the facility processes 650,000 barrels of crude per day, produces up to 53.6 million litres of Premium Motor Spirit (PMS) and 23.6 million litres of Automotive Gas Oil (AGO) daily, has the capacity to meet over 90 per cent of Nigeria's domestic demand, can save Nigeria between $6-11 billion annually in foreign exchange outflows and is currently exporting jet fuel to European markets, demonstrating global competitiveness.
"It has the capacity to meet 100 per cent of Nigeria's requirement for all refined liquid products, including petrol, diesel, kerosene and aviation fuel, with surplus volumes available for export, currently exports petrol, diesel and jet fuel across global markets, including Africa, Asia, the Americas and Europe, demonstrating strong international competitiveness," Oye argued.
According to him, NNPC's litigation against Dangote Refinery using the language of 'monopoly' to defend importation is not merely a policy error, but a moral failure.
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"It betrays the Nigerian entrepreneur who builds despite crushing interest rates. It betrays the Nigerian worker who could be employed in domestic refining. It betrays the Nigerian taxpayer whose resources are diverted to foreign suppliers. And it betrays the Nigerian future that depends on industrial self-sufficiency.
"The laws are clear. The economics are compelling. The global precedents are overwhelming. What is lacking is not knowledge but political will and the courage to prioritise Nigerian industries over foreign suppliers, Nigerian jobs over foreign profits, and Nigerian sovereignty over convenient dependency," he added.
According to him, President Bola Tinubu's economic agenda calls for production over consumption, industrialisation over importation, and sovereignty over subservience, stressing that NNPC must align with this agenda or be reformed until it does.
"The Dangote Refinery is not a monopoly threat. It is a sovereignty achievement. It is proof that Nigerians can build world-class industrial infrastructure when given the opportunity. The task of the government is not to stifle this achievement with import competition but to nurture it with protective policies that other nations take for granted.
"Nigeria does not need to import refined petroleum products. Nigeria needs to refine its own petroleum, by its own people, in its own facilities, for its own benefit. Anything less is a continuation of the colonial economic model that has kept Africa resource-rich but development-poor for generations," he insisted.
