₦airaland Forum

In September, the federal government said the Dangote Refinery would supply Nigeria’s domestic market with 25 million litres of petrol daily and 35 million litres daily from October.

by Mary Izuaka


Dangote Refinery has failed to meet its daily petrol supply commitment to the Nigerian market, official data from a regulator shows.

According to the Dangote Evacuation Report, sourced from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), between 15 September and 5 October, the refinery delivered only 148 million litres of petrol, instead of 575 million litres.

Earlier in September, the federal government said the Dangote Refinery would supply Nigeria’s domestic market with 25 million litres of petrol daily and 35 million litres daily from October.

However, the data seen by PREMIUM TIMES shows that the refinery’s actual supply fell short of expectations.


Performance below expectations

The refinery’s performance between September 15 and 30 was 26 per cent of its target, with 2,207 trucks loaded out of 3,621 trucks sent to it within the period under review.

The trucks carried just 102,973,025 litres of the planned 400,000,000 litres of petrol earmarked to be lifted from the refinery at 25 million litres per day. With that figure, the refinery demonstrated a total supply shortfall of 297, 026,975 litres in 16 days. So the average supply shortfall is approximately 18.6 million litres per day or 74.3 per cent of the target.

Between 1 and 5 October, the refinery loaded 991 trucks out of 3,112 planned truck-outs. The trucks loaded just 45,114,534 litres of the planned 140,000,000 litres of petrol earmarked to be lifted from the refinery at 35 million litres per day, achieving only 32 per cent of its target, records seen by this newspaper show.

Although the total volume expected for five days should be 175 million (35 million per day), the total 140 million litres planned suggests that it was only for four of the five days between 1 and 5 October.

Based on the actual 45,114,534 litres loaded, the refinery demonstrated a total supply shortfall of 94,885,466 litres.

This newspaper has not been able to obtain the loading data from 6 October till date.


Supply breakdown

Loading data obtained by this newspaper showed that on 15 September, the first day of loading, the Dangote Refinery supplied the Nigerian National Petroleum Company Retail Limited (NNPC Retail Ltd) with a total of 2,486,842 (2.48 million) litres of petrol in 56 trucks.

On 16 September, NNPC Retail loaded 50 trucks containing 2,221,773 (2.2 million) litres of petrol. Another marketer, AYM Shafa, loaded 24 trucks with 1,120,465 (1.1 million) litres of the product. The total number of trucks loaded for the day was 74, while the product received aggregated to 3,342,238 (3.3 million) litres.

However, product supply improved marginally on 17 September but was still far below expectations. On the day, NNPC Retail Ltd received 4,063,526 (4 million) litres in 89 trucks, while AYM Shafa could only load one truck, which carried 44,999 litres of the product. NIPCO trucked out 360,161 litres of petrol in eight trucks. The total number of trucks loaded for the day was 98, conveying 4,468,686 (about 4.5 million) litres of the product.

On 18 September, the supply from the refinery also improved significantly but was still far below expectations. The refinery loaded 182 trucks with 8.39 million litres of petrol. On 19 September, the refinery loaded 246 trucks with 11.69 million litres of petrol while the supply dropped to 7.15 million litres on 20 September with 152 trucks loaded on that day.

On 21 September, the petrol loaded at the refinery improved to 9.40 million litres with 204 trucks loaded. The refinery loaded 127 trucks with 5.93 million litres of petrol on 22 September. On 23 September, the refinery loaded 106 trucks with 4.77 million litres of petrol.

On 24 September the refinery loaded 143 trucks with 6.67 million litres. Supply was reduced to 3.74 million litres on 25 September with 81 trucks loaded. The petrol loaded at the refinery on 26 September improved to 7.89 million litres with 156 trucks loaded.

On 27 September, the refinery loaded 138 trucks with 6.72 million litres. And 90 trucks were loaded with 4.28 million litres of petrol on 28 September.

On 29 September, the supply from the refinery improved significantly but was still far below expectations. The refinery loaded 245 trucks with 11.36 million litres of petrol and on 30 September, the supply from the refinery declined drastically to 4.64 million litres and 99 trucks were loaded.

On 1 October, the refinery loaded 248 trucks with 11.37 million litres of petrol. On 2 October, the refinery loaded 224 trucks with 10.04 million litres of the product. On 3 and 4 October, the refinery loaded 210 and 154 trucks with 9.48 and 9.48 million litres, respectively. On 5 October, the refinery loaded 155 trucks with 7.10 million litres of the product.

When PREMIUM TIMES confronted the Dangote Group with these data and sought clarification on why the refinery has not been able to meet its target, the firm’s Chief Branding and Communications Officer, Anthony Chiejina, declined comment on Tuesday afternoon.


Challenges ahead

To meet its daily supply target for October, the refinery needs to load at least 500 trucks daily, assuming each vehicle carries 70,000 litres of petrol to supply 35 million litres of petrol to the nation daily.

In September, the refinery needed to load 500 trucks daily, with each carrying 50,000 litres of the product to supply 25 million litres of petrol. However, the data shows that the refinery did not meet this target.


Implications

The Nigerian government and the state-owned NNPC Ltd announced the full deregulation of petrol earlier this month. The NNPC Ltd said it would no longer be the sole off-taker of petrol from the Dangote refinery. Thus, any marketer in need of the product could approach the refinery, by far the largest in the country, to buy petrol. Marketers are also free to import petrol and sell it at a non-regulated price.

However, the removal of petrol subsidies has led to an over 100 per cent increase in the price of the product in the past year. This has also led to many consumers abandoning their cars and not turning on petrol-running generators, which has led to a significant drop in Nigeria’s daily petrol consumption.

The reduced demand for petrol by citizens, many of whom can no longer afford the volume they used to, means that the immediate impact of Dangote not meeting its production target is not being felt by many. Things may, however, change if the situation persists.


Background

On 15 September, NNPC Ltd began loading petrol from the Dangote Refinery as the sole off-taker of the product from the facility.

PREMIUM TIMES also exclusively reported that NNPC Ltd has ended its exclusive purchase agreement with Dangote Refinery, opening up the market for other marketers to buy petrol directly from the refinery.

This means the NNPC will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery.

On 11 October, the Nigerian government confirmed NNPC’s stance.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said this marks a departure from the previous arrangement, in which NNPC Ltd served as the sole purchaser and distributor of petrol from the refineries.

https://www.premiumtimesng.com/business/business-news/747663-dangote-refinery-falls-short-of-daily-petrol-supply-commitment.html

The refinery just started operating, and the data is already being compared to what was expected from a fully operational facility.

Fuk Dangote and his entitlement mentality for monopoly

D common folks are not learned on how Dangote has been a sole contributor to the suffering of Nigerians.

Propaganda posts from Tinubu boys.

Ona don start. Bunch of FOOLS.

He just started producing last month, not upto 2 months yet, yet NNPC & the likes from Federal govt keep cooking up rumors against him.

None of them is saint

LOL... They just want to see this man fail so they won't have competitors with their Malta deal


After tell us how many NNPC loaded with the salaries and money being wasted on them.....

What do you expect? This is Nigeria, grow up!

The problem with us in this country is that we praise incompetent leaders; people who are not fit to hold a position they are in.


If the national grid should collapse, then the person in charge should resign and let someone else take charge. That's how failures/debacles should be treated. I remember here in Africa; Nigeria to be precise where some citizens like suffering, voting for bad leaders, and being tribalistic.

Kelechi009:
Propaganda posts from Tinubu boys.

Ona don start. Bunch of FOOLS.

And bunch of criminals. These are the reasons our refineries have never worked. We need a revolution in this country, something similar to what happened in Ghana and they had peace and economic prosperity. The masses dey suffer too much for this country, needlessly.

Same eediots once said dangote diesel was adulterated before he proved them wrong and the lab results showed that it was even what the NNPCL was importing that was the adulterated one. Dangote had his records and had reiterated that he could meet daily local demand. If this wasn't true, he wouldn't have gone to court to stop NNPCL and marketers from importing petrol naw.

This refinery of a thing is a litmus test and a case study for all the would-be investors. None of them would ever thing of coming here to invest. This nonsense must stop.

This man should stop wasting our collective time.He can't make the commitment

Kelechi009:
Propaganda posts from Tinubu boys.

Ona don start. Bunch of FOOLS.

How is this a propaganda post? Dangote has fallen short of expectations

tundegan:
The refinery just started operating, and the data is already being compared to what was expected from a fully operational facility.

Crazy people... I am very disappointed with the Tinubu led NNPC. This government is just shameless and crooked. If Dangote didn't meet target, a reasonable government ought to reach out and find out why and also ways they can assist or encourage the refinery not this media blackmail.

Only a shallow thinker won't understand the games the FG is playing. Not a single commendation has been given to the Dangote for attempting to refine petrol locally by investing over $20billion in a shitty country like Nigeria.

What happened to the FG 4 refineries? The FG is too fixated on the Dangote refinery and they keep blackmailing the refinery because they want to keep collecting subsidy.

Very shameful.

On the long run, he will meet the target

Hmmm

Owners of Malta refineries don't want to see Dangote succeed...!


The greatest enemies and obstacles of Nigeria are NIGERIANS!

designking:
Crazy people... I am very disappointed with the Tinubu led NNPC. This government is just shameless and crooked.

Only a shallow thinker won't understand the games they are playing. Not a single commendation has been given to the Dangote refinery for even refining 1litre of petrol locally when their 4 FG refineries have all failed to work.

Please delete this comment.

It's so irresponsible of you to blame the FG because Dangote refinery is not meeting target. I don't think you went through the OP post gan

Is NNPC supplying the Refinery enough Crude ?..

This is not even my problem..
Tinubu government said by December 2024 dollar exchange to naira will be 700naira only, that is what I am waiting for now
🤣 🤣

This is why we shouldn't rely on only his refinery.

Lies when Dangote has 265Millions of PMS in it reserve and refines 350k BPD . Greed is our problem in dis country bcs how will the President be the Petroleum Minister. PBAT and his cabals might running oil cartels bcs I see no sense in fetching water elsewhere when you have a boreholes in your house

The issue is not about how much they are producing, the issue is the distribution. If they can produce 10 million litres and it get to the right hands, it go circulate.

Ringstonermask:
Fuk Dangote and his entitlement mentality for monopoly

D common folks are not learned on how Dangote has been a sole contributor to the suffering of Nigerians.

Dangote isn't responsible for Nigerias problems. Hold ur president and governors responsible.

Dangote is a private citizen.

the baba show us kerosene/ methylated Spirit in a bottle and kal it Petroleum . Church oo,football 🏟 ,market oo,inside public transport,oo.Nah how Dangote refinery go reduce petrol peeps dey discuss @last,babanor gree oo..

designking:
Crazy people... I am very disappointed with the Tinubu led NNPC. This government is just shameless and crooked.

Only a shallow thinker won't understand the games the FG is playing. Not a single commendation has been given to the Dangote to attempting to refine petrol locally by investing over $20billion in a shitty country like Nigeria.

What happens to the FG 4 refineries? The FG is too fixated on the Dangote refinery and they keep blackmailing the refinery because they want to keep collecting subsidy.

Very shameful.

So seems like a man that is fighting for you and Nigerians abi? You guys a just so funny.

Your refinery cannot even supply Lagos the required liters of fuel, let alone the entire nation...yet you still want to monopolize the sale of petrol in Nigeria...evil man

Or tinubu not happy he ia loosing personal money from exportation u mean

Ok

The report is unnecessarily lengthy.

In summary, Dangote refinery has been under performing, abi?

The Federal Government said Dangote will supply 25 million liters per day . Did Dangote say this? We should kno how politicians like to pull huge numbers out of the air. ..... as in "50 million jobs for the youths when I become ehmmm ..._ I forgot which politician made that bold promise. Let's just hope production increases.

The question is why?

Over hyped monopolistic Shiii Which is PRESENTLY of no SIGNIFICANT use to the FEDERATION

Up till now, I’m still yet to see any reasonable verifiable evidence that Dangote refinery don start to dey work..

I believe they’re just deceiving people. The refinery is yet to start anything..

But If I’m wrong, it’s because I have no evidence to believe..