Dangote Misled Tinubu Regarding 500 Million Fuel Storage Claims, Advocates for Fuel Subsidy, and Urges President to Pressure NNPC to Purchase His Petrol at N990/Litre.
Aliko Dangote, the billionaire industrialist, is accused of misleading President Bola Ahmed Tinubu about his fuel storage capabilities, claiming to have 500 million litres available.
Reports indicate that Dangote is charging ₦990 per litre for fuel loading at his refinery, requiring a minimum purchase of 1 million litres to be paid upfront.
Sources familiar with the discussions between Dangote and President Tinubu informed SaharaReporters that Dangote misrepresented his fuel stock during their meeting.
“Delays in loading are typical. If buying with a vessel, the minimum order is 15,000 metric tonnes (around 20 million litres) at ₦971 per litre. The total costs for chartering a vessel, port fees, and discharging to a private depot add approximately ₦60 per litre, resulting in a total landing cost of ₦1,031 for private depot owners. This situation has made it difficult for them to compete with Dangote,” one source explained.
Additionally, Femi Otedola suggested that private depot owners should consider selling their facilities as scrap due to market difficulties.
The source noted that the Independent Petroleum Marketers Association of Nigeria (IPMAN) cannot afford the ₦990 million price tag for 1 million litres of PMS.
“Dangote’s strategy is to sell to the Nigerian National Petroleum Company (NNPC) Limited, which would then distribute to other dealers,” the source stated.
It was also revealed that Dangote urged President Tinubu to compel NNPC to buy fuel from his refinery. However, President Tinubu clarified that NNPC would only make purchases if the prices were reasonable and indicated that Dangote should treat NNPC like other oil companies, such as Total and 11 PLC.
When questioned about the claimed volume of fuel, Dangote reportedly expressed uncertainty about the naira-to-dollar exchange rate and mentioned he was awaiting guidance from NNPC.
“NNPC is hesitant to buy from Dangote because they need to cover their costs while maintaining profit margins, which could lead to higher consumer prices. They want to avoid raising prices for consumers,” the source said.
The source added that Dangote seems to be seeking a subsidy and monopoly; however, President Tinubu has eliminated subsidies, fostering a monopolistic environment.
“Dangote aims for subsidy and monopoly, but President Tinubu’s removal of the subsidy creates conditions for monopoly. During the meeting, Dangote misled the President by claiming he had 500 million litres in storage. When asked why he held such a volume, he cited uncertainty about the exchange rate and was waiting for NNPC’s guidance.”
“The President remarked that as a savvy businessman, Dangote shouldn’t need to rely on NNPC for exchange rate information. Dangote also pressed the President to ensure NNPC Retail buys his fuel, but the President insisted that purchases should only occur if prices are competitive,” the source said.
SaharaReporters also learned that Dangote requested the President to set a fixed foreign exchange rate, which Tinubu refused.
One source added, “Dangote also sought to have the President stabilize the naira to dollar exchange rate, but the President declined.”
Sources mentioned that representatives from the African Export-Import Bank (Afreximbank) were present at the meeting, as the bank aims to become the settlement bank.
“The President of Afreximbank, Dr. Benedict Okey Oramah, is retiring next year and is looking to protect his investment in Dangote Refinery, similar to the former Central Bank Governor, Godwin Emefiele.”
“Oramah and Zacchs Adedeji from the Federal Inland Revenue Service (FIRS) are pressuring NNPC to provide foreign exchange discounts and subsidies to Dangote, which NNPC is currently resisting. Plans are underway to potentially replace NNPC management if they do not cooperate, with a candidate named Engineer Rabiu Suleiman being considered,” the source revealed.
