(DDM) – Major oil marketers in Nigeria have insisted that the Dangote Petroleum Refinery, despite its increasing domestic output and recent sharp price reductions, cannot single-handedly satisfy the country’s petrol supply requirements.
The marketers raised concerns that overreliance on a single refinery to meet nationwide fuel demands is creating challenges across the downstream sector, affecting distribution, pricing, and availability.
Industry sources said while the Dangote Refinery has significantly boosted local production, Nigeria’s fuel consumption continues to outpace the capacity of any single facility.
The refinery, located in Lagos State, is currently the largest in Africa and has been projected to produce hundreds of thousands of barrels of refined petroleum products daily.
Despite this, oil marketers warned that the nation still requires multiple operational refineries and robust import channels to maintain a stable supply chain.
According to them, disruptions or delays at any single facility could trigger shortages and inflate retail fuel prices.
They noted that domestic fuel demand remains highly volatile, influenced by seasonal consumption patterns, transportation needs, and economic activity.
The marketers said coordination between federal agencies, private operators, and local distributors is crucial to avoiding systemic bottlenecks.
They highlighted that although Dangote’s refinery reduces dependence on imported petrol, the facility alone cannot replace the aggregate capacity previously supplied by multiple private and government refineries.
The marketers also pointed out logistical challenges, such as limited pipeline networks, storage constraints, and regional disparities in fuel distribution.
They warned that concentrating supply in one source can exacerbate these existing inefficiencies.
Industry analysts said Nigeria’s downstream market has historically struggled with underinvestment in infrastructure and recurring production disruptions.
They added that while new refineries like Dangote’s bring hope, a diversified supply strategy remains essential.
Government statistics indicate that Nigeria consumes millions of litres of petrol daily, requiring continuous supply from both domestic refineries and importation to meet nationwide demand.
The marketers urged policy makers to focus on creating an integrated fuel supply system, combining local refining capacity with strategic imports.
They also called for enhanced regulatory oversight to prevent artificial scarcity and ensure fair pricing for consumers.
Observers said the concerns underscore the importance of long-term planning in Nigeria’s energy sector.
They noted that relying heavily on a single entity, regardless of size or efficiency, exposes the market to avoidable disruptions.
The marketers concluded that while Dangote Petroleum Refinery is a critical milestone for the nation, it should be part of a broader, multi-source strategy to guarantee consistent and affordable petrol supply.
Experts say improving infrastructure, maintaining existing refineries, and diversifying import channels remain vital steps to achieve energy security.
The warning comes at a time when Nigerians continue to face fluctuations in fuel availability and pump prices.
Industry stakeholders emphasise that sustainable solutions require collaboration between private operators, government agencies, and regional distributors.
With demand projected to grow in the coming years, reliance on a single refinery, no matter how large, is insufficient to meet national consumption patterns.
Marketers called for urgent action to ensure that the downstream sector is resilient, competitive, and capable of serving the country’s growing energy needs.
They stressed that failure to diversify could result in repeated fuel shortages, social inconvenience, and economic strain for both businesses and consumers.
DDM findings indicates that continued investment, policy consistency, and coordinated planning are necessary to stabilise Nigeria’s fuel supply and strengthen the downstream sector for the future.