Billionaire industrialist Aliko Dangote is said to have misrepresented his fuel storage capacity to President Bola Ahmed Tinubu, claiming a supply of 500 million litres.
Sources reveal that Dangote’s refinery charges N990 per litre, with a minimum purchase of 1 million litres, all payable in advance.
Insiders privy to recent discussions between Dangote and President Tinubu shared with SaharaReporters that Dangote overstated his storage capacity during their meeting, claiming he held 500 million litres of fuel in reserve.
“Loading delays are frequent. For vessel purchases, the minimum buy is 15,000 metric tonnes, or around 20 million litres, at N971 per litre,” one source explained. “Additional costs, including vessel chartering, port fees, and discharge fees to a private depot, amount to about 60 naira per litre, which makes the total landing cost for depot owners N971 plus 60 naira. Private depots aren’t buying due to these high costs.”
This competitive pricing makes it difficult for private depot owners to compete with Dangote. “Femi Otedola even suggested that private depot owners sell their depots as scrap, highlighting the market’s difficulties,” the source added.
The source noted that the Independent Petroleum Marketers Association of Nigeria (IPMAN) cannot afford the N990 million required for 1 million litres of PMS.
“Dangote’s aim appears to be selling to the Nigerian National Petroleum Company (NNPC) Limited, which would then distribute to other buyers,” the source continued.
Reportedly, Dangote urged President Tinubu to mandate NNPC to buy fuel from his refinery. However, Tinubu responded that NNPC would only purchase at fair market prices and advised Dangote to treat NNPC as he would other companies, like Total and 11 PLC.
When questioned about his fuel reserves, Dangote expressed uncertainty over the current naira-to-dollar rate, indicating he was awaiting guidance from NNPC.
“NNPC doesn’t want to buy from Dangote because they must balance their costs with profitability, which could increase consumer prices. NNPC wants to avoid burdening consumers with higher prices,” said one source.
The source added that Dangote’s approach suggests a push for subsidy and monopoly, but President Tinubu’s removal of fuel subsidies has shifted the market dynamics.
“At their recent meeting, Dangote falsely claimed to have 500 million litres in storage. When the President questioned his storage strategy, Dangote cited uncertainty about exchange rates and dependence on NNPC for guidance,” the source explained. “The President noted that a savvy businessman wouldn’t need NNPC’s input to understand exchange rates.”
According to sources, Dangote also requested the President to fix the naira-to-dollar exchange rate, a request Tinubu declined.
Representatives from the African Export–Import Bank (Afreximbank) also attended the meeting, with the bank reportedly seeking to become the transaction settlement bank for Dangote Refinery. Sources say Afreximbank President Dr. Benedict Oramah, who is set to retire soon, is motivated to protect his private investment in the refinery.
“Oramah and Zacchs Adedeji of the Federal Inland Revenue Service (FIRS) are exerting pressure on NNPC to grant foreign exchange discounts and subsidies to Dangote, pushing to have these costs absorbed into the federation account,” another source revealed. “NNPC is currently resisting this move.”
The source added that there are efforts underway to replace NNPC’s management if it does not yield to these demands, with plans to potentially bring in Engineer Rabiu Suleiman from Kano to lead NNPC.
