Aliko Dangote, Africa’s richest man, has challenged the long-held claim that the country consumes 50 million litres of petrol daily, stating that real data shows the actual figure is closer to 33 million litres per day.
- Aliko Dangote contests Nigeria’s reported daily petrol consumption.
- Concerns have been raised about inaccuracies in fuel usage reporting linked to subsidy policies.
- Following subsidy removal in 2023, petrol consumption reportedly dropped dramatically, aligning with suspicions of overestimated figures.
Aliko Dangote, Africa’s richest man, has challenged the long-held claim that the country consumes 50 million litres of petrol daily, stating that real data shows the actual figure is closer to 33 million litres per day.
For years, analysts and civil society groups have raised concerns about the lack of transparency in fuel consumption reporting, particularly when subsidies, once a major line item in the national budget, were directly tied to reported usage.
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However, much of this petrol may never have reached Nigerian consumers. Analysts and officials have consistently alleged that large volumes of subsidised fuel were smuggled across borders to neighbouring countries such as Benin Republic and Cameroon, where prices are higher due to the absence of domestic refining capacity.
The narrative began to shift in mid-2023 after President Bola Tinubu removed the longstanding petrol subsidy.
Inflated data
On July 18, 2023, the NMDPRA reported that daily consumption had dropped to 46.38 million litres in June, down from the previous average of 65 million litres.
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As of September 2024, President Bola Tinubu stated that Nigeria’s daily petrol consumption had dropped even further, to around 30 million litres
This sharp decline appeared to support long-held suspicions that Nigeria’s reported consumption under the subsidy regime was significantly overstated.
Dangote refinery disrupts oil market
Since it began operations in 2024, the $20 billion Dangote Refinery, Africa’s largest, with a capacity of 650,000 barrels per day, has upended Nigeria’s fuel market. The facility, located in Lagos, aims to meet domestic demand and reduce the country’s dependence on imported refined fuel.
Economists say the refinery could eventually end West Africa’s reliance on European fuel imports, disrupting a $17 billion gasoline export market and altering trade dynamics across the continent.
Dangote also warned that Africa’s continued reliance on imports has made it a dumping ground for substandard petroleum products.
