Lagos, Nigeria – The Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals has stated that the facility is ready to compete in Nigeria’s petroleum market under import-parity pricing. David Bird emphasized that regulators must ensure fair competition for this to succeed.
Okay News reports that Bird made the remarks during a media briefing in Lagos on Monday. He stressed the need for equitable regulatory enforcement to sustain healthy competition in the downstream sector.
Bird stated that the refinery is willing to compete for market share as long as a level playing field is maintained for Euro 5 standard gasoline. This higher-quality fuel is now available to Nigerian consumers.
He clarified that the refinery does not receive crude oil at discounted rates under the Federal Government’s crude-for-naira arrangement. Instead, it purchases Nigerian crude at international benchmark prices.
Bird noted that global market instability is hitting import-dependent countries hardest. This reality reinforces the value of domestic refining for energy security.
Global oil markets are experiencing extreme volatility. Crude prices have risen from the mid-60 range to nearly 120 per barrel within one week. The refinery’s operations are fully exposed to international commodity market factors including crude oil prices, freight rates, insurance, and financing costs.
Tanker freight costs have surged sharply, increasing from about 800,000 to roughly 3.5 million per shipment. Despite these challenges, the refinery continues to operate at full capacity.
Dangote Refinery operates at its full nameplate capacity of approximately 650,000 barrels per day. There is potential to increase production to around 700,000 barrels per day.
Owned by African industrialist Aliko Dangote, the refinery is considered a transformative project for Nigeria’s energy sector. It was designed to reduce the country’s reliance on imported refined petroleum products while strengthening domestic fuel supply.
Last year, the refinery stated that it does not compete with Nigerian National Petroleum Company Limited. The two companies play complementary roles in Nigeria’s energy and refining environment.
The Dangote Refinery is now a central player in Nigeria’s downstream sector. It is capable of meeting the country’s fuel demand independently of international supply shocks.
