Dangote Refinery Can Save Nigeria N15tn in Imports, Generate $11bn FX, Says Dele Oye

Dele Oye, former President of the Nigerian Association of Chambers of Commerce of Industry, Mines and Agriculture (NACCIMA), stated that the Dangote Petroleum Refinery possesses the capacity to save Nigeria more than N15 trillion annually by reducing fuel import costs. Oye, who also chairs the Alliance for Economic Research and Ethics LTD/GTE, estimates the 650,000 barrels per day facility could generate approximately $11 billion in foreign exchange through domestic refining and petroleum exports.

Oye emphasized that Nigeria's persistent dependence on imported refined petroleum products results in substantial foreign exchange losses, despite the operational capabilities of the Dangote Refinery. He criticized the Nigerian National Petroleum Company Limited (NNPC Ltd) for defending fuel import licenses, arguing that this stance hinders Nigeria's pursuit of energy self-sufficiency and economic sovereignty.

According to Oye, Nigeria spent about N15.42 trillion on petrol imports in 2024, a figure he described as a significant drain on foreign exchange reserves and a structural weakness in the nation's energy sector. He asserted that the Dangote Refinery could meet over 90 percent of Nigeria's domestic fuel demand, substantially decreasing import reliance if fully integrated into the national supply chain.

Oye further projected that increased domestic refining could save Nigeria up to $11 billion annually in foreign exchange outflows, thereby easing pressure on the naira and fostering macroeconomic stability. He challenged the NNPC's rationale for continued fuel importation, stating that maintaining import licenses for foreign products while a domestic facility can meet demand is counterproductive to 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 remarked. He pointed out that Nigeria's legal framework, including the Petroleum Industry Act (PIA) 2021, prioritizes domestic refining and local value addition, with imports intended only as a temporary measure.

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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.