According to a report by Daily Post on Wednesday, September 17, 2025, Aliko Dangote has alleged that the Nigerian National Petroleum Company Limited (NNPCL) refineries are only capable of producing low-value premium motor spirit, raising concerns about the competitiveness of the nation’s oil sector.
He made this known in a recent interview where he spoke about the capacity of his 650,000-barrel-per-day refinery compared to government-owned facilities.
Dangote stressed that the industry requires significant efficiency and output to attract investment.
Dangote explained that his refinery produces 54 per cent gasoline from crude oil processing, a level of production he said NNPCL cannot match.
According to him, the best NNPCL can achieve is only 18 per cent, with the bulk of their output being fuel oil that has little demand in today’s global market.
He pointed out that this situation makes the government-owned refineries less viable in terms of profitability.
He further stated that Nigeria’s downstream sector cannot thrive if its major players are unable to maximize returns on crude oil refining.
The billionaire businessman emphasized that without meaningful revenue in the industry, there will be no incentive for investors to channel funds into the sector.
He described the current capacity of the NNPCL refineries as inadequate for the economic needs of the country.
The industrialist also highlighted the importance of modern refining methods, stressing that global energy trends demand efficiency and higher yields of gasoline.
He noted that continuing with outdated operations would only lead to losses for the country.
In his view, the more the NNPCL refineries operate under their current conditions, the less beneficial they are to Nigeria’s economy.
Dangote underlined that his refinery was designed to meet international standards and provide products that align with market demand.
He maintained that with its high yield of gasoline, the facility stands as a competitive alternative to imports, offering Nigeria an opportunity to reduce dependence on foreign refined petroleum products.
He also observed that private investment in the oil sector would only flourish if operators could see clear profits.
According to him, investors are discouraged when the system cannot generate the right value from crude oil processing.
He maintained that the success of his refinery is tied to the ability to produce higher volumes of premium products compared to state-owned facilities.
Dangote’s remarks draw attention to the broader challenges facing Nigeria’s refining sector.
His comparison between his refinery and NNPCL facilities reflects concerns over efficiency, market relevance, and profitability.
The issues he raised underline the need for modern solutions in the country’s oil industry to ensure sustained growth and competitiveness.
He said: “When we produce, we have 54 per cent gasoline. NNPC, if they try, will achieve only 18 per cent. 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 make.
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