Aliko Dangote, Chairman of Dangote Group, has attributed the ongoing fuel scarcity in Nigeria to the inaction of retailers.
He emphasized that over 500 million litres of fuel are currently stored in his tank farm, ready for distribution, yet the retailers responsible for purchasing and distributing the fuel have not come forward to collect it.
Dangote made these statements on Tuesday, following a meeting between key stakeholders in the oil and gas sector and President Bola Tinubu, aimed at resolving the persistent fuel shortages despite rising prices.
According to Dangote, his refinery has the capacity to produce over 30 million litres of fuel daily. However, since he does not engage in retail, the fuel cannot reach the consumers who need it because retailers are not picking it up.
He expressed frustration over the financial losses incurred from storing large quantities of fuel while Nigerians suffer from shortages.
Speaking to reporters after the meeting, Dangote stated, “We have sufficient crude supply and can produce significantly more than 30 million litres each day. At full capacity, we could meet the entire consumption demand. I estimate that consumption is around 30 to 32 million litres, which we could start producing as early as next week.
“It’s not a problem; we currently have 500 million litres in our tanks. Even without any production or imports, this amount could sustain the country for over 12 days.
“We are fully prepared. I assure Mr. President that we can supply a minimum of 30 million litres per day, and we will increase that supply. We are more than ready.”
When questioned about the paradox of having millions of litres of fuel available while the public struggles to access it, Dangote responded, “It’s important to understand that we are producers.
“I own a refinery and am not in the retail business. If I were in retail, you could hold me accountable. What I’m saying is that retailers need to come forward and collect the fuel. If they don’t, what can I do? I can only produce. I don’t expect NNPC or marketers to stop importing; they should come and collect what we have.
“As they take fuel, I will continue to pump. Maintaining half a billion litres in our tanks incurs daily costs. If I could charge interest, it would be around 32%. That’s the loss I’m facing. We don’t print money. The solution is for them to collect the fuel, which would eliminate the queues at filling stations.
“We have the capacity for them to come and collect. We are not retailers and do not have trucks for distribution. We have a factory and loading facilities. If they come to pick up the fuel, they have been doing this with imports. If they can manage 55 million litres from imports, there’s no reason they can’t collect and distribute our fuel.”
