Dangote Declares NNPC Refineries Cannot Compete With His Plant

Africa’s richest man, Aliko Dangote, has asserted that the Nigerian National Petroleum Company Limited (NNPC Ltd.) cannot compete with the Dangote Refinery in gasoline production, stressing that government-owned refineries would only incur losses if they resume operations.. Read ..Full.. Article.. .

Speaking on the state of Nigeria’s downstream sector, Dangote explained that his refinery produces about 54 percent gasoline, while NNPC refineries, at full capacity, would only achieve 18 percent gasoline output, with the rest being low-value fuel oil.

According to him, fuel oil has little or no demand in today’s market, making the refineries economically unviable.

Dangote said: “If we don’t make money, nobody will come into this business. Then you end up with only one supplier because NNPC’s refineries can never ever compete. When we produce, we have 54 percent gasoline. NNPC, if they try, will achieve only 18 percent. They will produce low-value fuel oil, which is not needed today, so it will be a loss. The more they operate, the more money they lose, and..  Read . .More