President of Dangote Group, Aliko Dangote, has said that the refineries operated by the Nigerian National Petroleum Company Limited (NNPCL) are incapable of competing with his 650,000-barrel-per-day refinery because they can only produce low-value premium motor spirit.
Speaking in a recent media interview, Dangote argued that the viability of the country’s downstream oil sector depends on profitability, stressing that lack of revenue would deter investment.
“If we don’t make money, nobody will come into this business. Then you end up with only one supplier because NNPC’s refineries can never ever compete because the market here is a gasoline market,” he said.
Dangote explained that his refinery is structured to produce 54 per cent gasoline, while NNPCL’s facilities can only achieve about 18 per cent, resulting mainly in low-value fuel oil that is not in demand. “They will produce low-value fuel oil, which is not needed today, so it will be a loss. The more they operate, the more money they make,” he added.
