Business
Dangote Refinery Can Save Nigeria N15tn Import Cost, Generate $11bn FX Inflow Annually – Dele Oye
The Dangote Petroleum Refinery has the capacity to save Nigeria over N15 trillion in fuel import costs and generate an estimated $11 billion in foreign exchange inflows through local refining and petroleum exports per annum.
These are the views of former President of the Nigerian Association of Chambers of Commerce of Industry, Mines and Agriculture (NACCIMA), Dele Oye, who is also the Chairman of the Alliance for Economic Research and Ethics LTD/GTE, expressed in a media statement.
He 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.
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.
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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.
He maintained that the NNPC’s litigation against Dangote Refinery using the language of ‘monopoly’ to defend importation is not merely a policy error, but a moral failure.
“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.
Business
Police Ponder Dangote Refinery Equities
The opportunity of owning equities in the Dangote Petroleum Refinery and Petrochemicals (DPRP) is becoming irresistible, even among pension fund custodians and administrators.
It has emerged that the Nigeria Police Force Pensions Limited (NPFPL) is seriously looking into investment in the ongoing Initial Public Offering (IPO) as part of efforts to diversify its portfolio and sustain returns for police personnel and retirees.
The Acting Managing Director of NPF Pensions, Muhammed Dutse, offered insights on this in Abuja on Monday during activities marking the 2026 Customer Service Week (CSW).
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Dutse said the pension fund administrator was exploring alternative investment opportunities as declining interest rates could affect returns from traditional fixed-income and bank instruments.
“As you can see recently, there’s a lot of hype around Dangote Petroleum Refinery and Petrochemicals. So, we also look up to that as well,” he said.
He explained that the company’s investment strategy would combine equities with private equity, infrastructure funds and other alternative assets rather than depend heavily on returns from bank deposits.
“There are private equity funds, there are infrastructure funds, there are so many investment windows, alternative investments that we can harness to get good returns,” Dutse said.
He added that the company was also assessing opportunities in the stock market, including shares of large Nigerian companies, as part of efforts to protect pension assets and generate competitive returns.
The comments come amid growing interest in investment opportunities around the DPRP, following moves to broaden ownership of the multibillion-dollar facility.
Dutse said the diversification strategy had become particularly important following changes in the Central Bank of Nigeria’s (CBN) monetary policy stance, which could affect yields available to pension fund administrators.
According to him, NPFPL would increasingly consider opportunities in infrastructure, private equity and the energy sector to strengthen its investment position.
He stated, “Our strategy is a combination of all these instruments in place. We just don’t rely on what banks give us.
“The good thing about this government is that they have opened up opportunities for investment. So, you see a lot of investment opportunities springing up, like I mentioned earlier, infrastructure funds, private equity funds and, especially, in the areas of energy.”
Dutse said NPFPL had recorded an average annual return of about 23 to 24 percent over the past five years, with returns approaching 37 percent in one of the years.
He said the PFA had developed strategies aimed at maintaining its investment performance despite changes in financial market conditions.
“Clearly, we have worked out some strategies to ensure that we maintain this particular rate of return on our investments, which, of course, is yielding positive returns to all our clients,” he stated.
Beyond investments, Dutse acknowledged concerns among retired police officers about pension benefits, saying the Federal Government was working on measures to improve retirees’ take-home pay.
He said a presidential committee was already considering the matter.
“Currently, there is an attempt by the Federal Government — it’s in fact in the process — and we have been working to ensure that the pay, the take-home pay of retirees, is improved,” he said.
Dutse also said the company operates a Retirement Resettlement Support Scheme (RRSS) to provide temporary support to retiring police officers pending the release of their pension benefits, while pre-retirement programmes expose officers to businesses and skills such as poultry farming.
On customer service, he said NPFPL had expanded direct engagement with contributors and introduced a WhatsApp Business platform, which had attracted nearly 100,000 police officers.
He said the digital platform was designed to allow officers to access pension services remotely without having to visit the NPFPL’s offices.
Business
Ndindi Nyoro Gives Ruto 14 Days to Disclose Dangote Refinery Deal
People’s Party of Kenya leader and Kiharu Member of Parliament Ndindi Nyoro has publicly declared his party’s alignment with the opposition, vowing to collaborate with other opposition leaders to bring President William Ruto’s administration to an end.
Nyoro made the remarks during a public rally in Laare, Igembe North Constituency, Meru County, as part of what he described as the “People’s Tour.”
He said any effort to change Kenya’s leadership must be accompanied by a genuine transformation of the country’s economy and governance structures.
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Nyoro Issues Dangote Refinery Ultimatum
At the Laare rally, Nyoro issued President Ruto a direct 14-day ultimatum to make public the full details of the proposed Dangote oil refinery investment, arguing that Kenyans are entitled to know the terms of the deal.
The demand puts additional pressure on the Ruto administration over a transaction that has attracted scrutiny regarding transparency and the terms under which Kenya would participate.
Courtesy – Tuko
Business
Dangote to Deliver $16bn East Africa Refinery in 40 Months
Africa’s drive for industrial self reliance received a major boost on Wednesday as Kenya President William Ruto and President/Chief Executive, Dangote Industries Limited, Aliko Dangote, joined African leaders to break ground on a $16 billion petroleum refinery and petrochemicals complex in Lamu, Kenya.
Biztellers reports that the industrial complex is designed to process 700,000 barrels of crude oil per day and serve markets across Eastern Africa.
Dangote announced that the $16 billion Dangote East Africa Petroleum Refinery & Petrochemicals in Lamu, Kenya, will be delivered within 40 months, with an ambitious local content programme that will provide jobs for qualified Lamu graduates and train more than 1,000 young people from the county. Dangote also disclosed that 30 per cent equity in the 700,000 barrels per day refinery is being offered to East African countries, opening the landmark project to regional ownership as part of a broader strategy to strengthen energy security and retain more of Africa’s wealth within the continent.
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Dangote said the project would be executed at speed, assuring the gathering that the refinery would be completed within 40 months. He said the company had already begun mobilising equipment and technical resources for the project and would draw extensively from lessons learnt in delivering the Dangote Petroleum Refinery in Lagos. According to him, the Kenyan refinery would be one of the fastest major projects undertaken by the Group, as the company seeks to demonstrate that African businesses can execute complex industrial projects at globally competitive scale and speed.
Dangote placed local participation at the heart of the project, announcing that qualified graduates from Lamu would be offered opportunities to work on the development, while more than 1,000 young people from the host communities would receive technical and vocational training to prepare them for jobs within the refinery and its emerging industrial ecosystem. The Group will establish a training school to develop the technical skills required by the refinery, with emphasis on equipping local young people to participate directly in construction and subsequent operations. Dangote said the objective was to ensure that the economic footprint of the investment extended well beyond the refinery.
“We want young Kenyans and East Africans with skills here. We want local businesses to become suppliers. We want entrepreneurs around this project,” he said. “For me, the true measure of this project will not be the height of these towers or the number of barrels it processes.”
Instead, he said its success would also be measured by young Kenyans acquiring engineering and technical skills, local entrepreneurs building businesses around the investment and communities enjoying improved livelihoods. “Industrialisation must have a human face. It must create dignity. It must create jobs. It must create opportunities. It must create hope,” Dangote said.
President Ruto put the cost of the development at $16 billion, or about KSh2 trillion, describing it as a “generational undertaking” designed to serve not only Kenya but the wider Eastern African region. The project is designed to process about 700,000 barrels of crude oil daily and generate up to 1,000 megawatts of electricity. It will also include polypropylene and base oil production as part of an integrated refining and petrochemicals complex.
Ruto reinforced the employment commitment, saying current projections envisage about 60,000 direct and indirect jobs from the development. The President directed technical and vocational institutions and universities to prepare welders, technicians, engineers and managers for the opportunities, insisting that young people from Lamu and neighbouring communities must be given a fair opportunity to compete for the jobs. Ruto said the construction phase alone was expected to inject more than KSh2 billion monthly in wages into the economy, with the money circulating through shops, hotels, restaurants, transport, housing and other businesses.
In another significant move towards regional economic integration, Dangote disclosed that 30 per cent of the refinery’s equity would be made available to East African countries, allowing governments in the region to participate in the ownership and future value created by the project. He said Kenya and Rwanda had already moved quickly to take advantage of the opportunity. The ownership model fits into Dangote’s broader argument that African countries and investors should not merely host major industrial projects but should increasingly participate in their ownership and prosperity. Dangote said the refinery had been designed as a regional asset serving Kenya, Uganda, Rwanda, Tanzania, Ethiopia, South Sudan, the Democratic Republic of Congo and other markets.
“This refinery is therefore not simply about one country. It is about a region,” he said.
The industrialist said Africa could no longer afford an economic model under which crude oil, minerals and agricultural commodities were exported while the continent imported the finished products derived from them.
“Africa cannot build lasting prosperity by exporting what it has and importing what it needs,” he said. “We must refine more of what we produce. We must process more of what we produce. We must retain more value here at home in Africa.”
The Governor of Lamu County, Issa Timamy also used the groundbreaking to condemn attempts to stop the project through litigation, describing those behind the move as working against an investment capable of transforming the economic fortunes of the county. Addressing residents partly in Swahili, the Governor said those who had gone to court against the development did not represent the aspirations of the people of Lamu.
He argued that opponents of the project were seeking to frustrate an investment that could provide opportunities for thousands of young people and insisted that residents would not allow the county’s development prospects to be undermined.
The Governor maintained that the project would go ahead and be completed, while calling on young people and businesses in the county to prepare themselves for the opportunities that would accompany the investment. He said Lamu had for too long been rich in history, culture and natural resources but left behind in the march of development, adding that the refinery offered the county an opportunity to become a major investment and industrial destination.
He nevertheless stressed the importance of protecting Lamu’s mangroves, fishing grounds, coastline and cultural heritage, calling for responsible development that would allow industrialisation and environmental protection to coexist.
Former Nigerian President Olusegun Obasanjo led other African leaders in celebrating Dangote’s emergence as one of the continent’s leading champions of industrialisation, recalling his evolution from trading and importation into large scale manufacturing. Obasanjo said the transformation demonstrated the importance of African governments creating the right environment for indigenous entrepreneurs to invest, manufacture and compete at scale. For the former President, the Lamu investment represented a further expansion of that industrialisation philosophy from West Africa into East Africa.
Obasanjo said he was particularly pleased to witness the project because of its potential to deepen economic integration between the two regions and demonstrate what African entrepreneurship, supported by purposeful political leadership, could accomplish.
Ugandan President Yoweri Museveni said Africa could not continue exporting raw materials while surrendering the jobs and wealth associated with processing them elsewhere. He backed the regional ownership proposal, describing the opportunity for East African countries to acquire equity in the refinery as a smart approach to ensuring that the region participated not merely as a market but also as an owner.
Prime Minister of Ethiopia, Abiy Ahmed, said the refinery would strengthen East Africa’s energy security and reduce its vulnerability to disruptions in global petroleum markets. He said Dangote’s record in cement, fertiliser and petroleum refining had demonstrated that African industrial enterprises could operate at global scale. “East Africa is not only a market. It is a place to produce, to build and to create value,” Abiy said.
Photo Caption: From Left – Prime Minister of Ethiopia, Abiy Ahmed; President of Uganda, Yoweri Museveni; President of Kenya, William Ruto; President/Chief Executive, Dangote Industries Limited, Aliko Dangote; former President of Nigeria, Olusegun Obasanjo; President of Benin Republic, Romuald Wadagni; and President of Togo, Jean Lucien Savi de Tové, during the groundbreaking ceremony of the Dangote East Africa Petroleum Refinery & Petrochemicals SEZ in Mokowe, Lamu County, Kenya, on Wednesday, September 30, 2026





