Dangote Tackles FG’s Claim on Petrol Consumption, Shares Total Daily Usage

• Dangote has disputed the estimate that Nigeria uses 50 million liters of gasoline daily, claiming the real figure is closer to 33 million liters
• He emphasised the need for new research to accurately measure Nigeria's gasoline consumption, as current figures are exaggerated.
• In response, energy expert Taiwo Ogunloye defended the NMDPRA's role in ensuring energy security and providing accurate data on the nation's fuel usage

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Dangote has disputed the estimate that Nigeria uses about 50 million liters of gasoline per day.

He claimed that the real amount is closer to 33 million liters, or 17 million liters less, and that earlier data by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was exaggerated for corrupt purposes, particularly during the fuel subsidy era.

Speaking during a recent visit by Global CEO Africa members to the Dangote Petroleum Refinery, Dangote criticized the petroleum industry for widespread corruption, calling it a "mafia business" that he was first hesitant to enter, according to Punch.

Leadership reported that when fuel was subsidized, he said, inflated consumption figures were used to siphon off funds, sometimes up to 90 million liters per day, far more than the capacity implied by Nigeria's vehicle population. He emphasized that Nigeria does not consume up to 40 million liters per day as officially reported.

Additionally, crude oil refiners stated that new research is needed to measure the nation's actual consumption; if not, the discussion and dispute would continue.

Taiwo Ogunloye, an energy specialist and lawyer from the Institute of Energy and Extractive Industry Law, responded to the accusation, stating that the NMDPRA is essential to maintaining energy security under the Petroleum Industry Act (PIA).

Ogunloye claims that the PIA gives NMDPRA the authority to carry out market-driven measures like price liberalization and deregulation, which promote competition in the market and draw in investment.

Furthermore, the NMDPRA guarantees a sufficient supply of products, lessens the adverse consequences of eliminating subsidies, and fosters a stable and secure energy industry.

He stated that since the government holds licensees and permit holders accountable, it should provide a more accurate estimate of the country's gasoline usage.

“However, Dangote is an operator and may have some figures at his disposal, but that may be limited in scope because the NMDPRA has the duty and responsibility, as well as the capacity, to provide accurate information on the actual marketer situation,” he told LEADERSHIP in a telephone conversation.

Dangote Refinery expands to Namibia, 4 Others

Legit.ng reported that Dangote Refinery has unveiled bold plans to expand its operations across Africa, beginning with Namibia, as it sets its sights on becoming the continent’s leading fuel supplier.

In a recent statement cited by the Daily Sun, Anthony Chiejine, the spokesperson for the Dangote Group, confirmed that the refinery’s expansion is part of a broader vision to industrialise Africa and reduce its dependence on Western energy supplies.

Chiejine said the refinery’s recent success proves it can replicate its model anywhere in Africa.

Source: Legit.ng