Nigerian energy retailers called for the state to create local strategic reserves of petrol and other fuels to buffer from supply shocks in the global oil market.
An influential trade group that favors the importation of refined products is leading the charge, in a move that would undermine Africa’s richest man Aliko Dangote, who says his 650,000 barrels-a-day refinery can meet Nigeria’s energy needs.
Increased domestic refining has made Nigeria significantly less reliant on importing refined petroleum products, with nearly 80% of petrol supply in the country from January to June this year coming from domestic sources. However, a 6% year-on-year drop in total petrol supply during the period has raised concerns about relying entirely on domestic refining.
The trade group said that while the Dangote Refinery has achieved “impressive production levels,” it was concerned that maintenance and technical issues meant Nigeria should retain a “diversified supply framework” supported by domestic sourcing. Lawmakers held a hearing this week on the existing tension between importers and refiners, where the energy marketers reiterated their stance on building reserves using both imports and locally refined stock.