Aliko Dangote clarifies Nigeria consumes 33m litres of fuel daily but 17 million added by oil thieves
By Jeph Ajobaju, Chief Copy Editor
Dangote Group President Aliko Dangote has clarified that Nigeria consumes 33 million litres of fuel per day, not the inflated 50 million litres bandied about by government officials who divert revenue from the excess 17 million litres into their pockets.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) estimates petrol consumption at about 50 million litres but Dangote argued that the figure is 17 million litres less, alleging that the data was inflated for corrupt gain especially during the fuel subsidy era.
Dangote, who spoke during a recent visit to Dangote Refinery by Global CEO Africa members, criticised the petroleum sector for pervasive corruption, describing it as a “mafia business” he initially hesitated to enter.
He reiterated that inflated consumption figures were used to siphon funds when fuel was subsidised, at times purportedly up to 90 million litres daily, far beyond the capacity implied by Nigeria’s vehicle population.
The primary source of data rests with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) but the Nigerian Bureau of Statistics (NBS) and the Central Bank of Nigeria (CBN) issue data on import and consumption rates.
Other stakeholders have advocated for conclusive data to determine real consumption and end the argument.
Taiwo Ogunloye (Institute of Energy and Extractive Industry Law
A lawyer and energy expert, Ogunloye noted that the NMDPRA plays a crucial role in ensuring energy security under the Petroleum Industry Act (PIA).
He also said:
- The PIA empowers the NMDPRA to implement market-driven policies, including deregulation and price liberalisation, fostering a competitive market and attracting investment.
- The NMDPRA ensures adequate product supply, mitigates negative effects of subsidy removal, and promotes a stable and secure energy sector.
- A more accurate figure of petrol consumption should be sourced from the NMDPRA because it holds permit holders and licensees to account.
“However, Dangote is an operator and may have some figures at his disposal but that may be limited in scope because the NMDPRA has the duty and responsibility as well as capacity to provide accurate information on the actual marketer situation” Ogunloye told LEADERSHIP.
He said the NMDPRA could contradict Dangote’s claims but expressed reservations because the use of the word ‘corruption’ is serious and could only be substantiated with proof which may be at the disposal of an accuser.
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