THE Chairman of the Alliance for Economic Research and Ethics LTD/GTE, Dele Oye, has said the Dangote Petroleum Refinery has the capacity to save Nigeria over N15 trillion annually in fuel import costs while generating an estimated $11 billion in foreign exchange inflows through local refining and petroleum exports.

Oye, in a statement, said 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, noting that the Nigerian National Petroleum Company Limited (NNPC Ltd) continued defence of fuel import licences undermines the country’s drive toward energy self-sufficiency and economic sovereignty.

He stated 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, with a capacity of 650,000 barrels per day, has the ability to meet over 90 percent of Nigeria’s domestic fuel demand and could significantly reduce import dependence if fully integrated into the national supply system.

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.

Oye questioned the 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.

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