The Dangote Group says the Federal Government’s decision to delay the 15 per cent import duty on petrol and diesel won’t shift its long-term agenda for expanding the Dangote Refinery. According to the company, the target to ramp up output to 1.4 million barrels per day remains locked in, and no policy adjustment is strong enough to derail that goal.
The Group’s Chief Branding and Communications Officer, Anthony Chiejina, made it clear that the refinery upgrade is a strategic move for the future, not a reaction to short-term market changes. He noted that the company isn’t building for today’s pressures but for tomorrow’s demand, insisting that its growth trajectory remains untouchable.
Only weeks ago, Aliko Dangote outlined the refinery’s expansion plan, revealing that the leap from 650,000 barrels per day to 1.4 million barrels per day would position the facility as the largest refinery in the world once the upgrade is complete. Chiejina reinforced that vision, describing the expansion as a forward-looking investment meant to secure Dangote’s role as a key player in both local and international markets.
The Federal Government recently approved a shift in the timeline for enforcing the planned import duty on petrol and diesel, moving the rollout to the first quarter of 2026. The revised timeline followed a detailed proposal submitted by the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, who pushed for a more coordinated implementation after consulting major industry stakeholders.
A letter dated November 7, 2025, highlighted the need to ensure that local refiners, logistics operators, and fuel supply lines are fully prepared before the levy takes effect. The duty was originally designed to strengthen local refining, stabilise fuel prices, and reduce unhealthy competition between imported and domestically refined products.
Government officials argue that the postponement gives marketers and regulators a needed “stability window,” especially as they navigate rising landing costs and ongoing exchange rate volatility. It also allows authorities more time to evaluate refining output in early 2026 before enforcing the new duty.
Despite the tariff suspension, the Dangote Group maintains that its expansion blueprint is still on schedule. As Chiejina put it, the company is building for the future and won’t be slowed down by temporary policy changes.
At an industry conference hosted by the Energy Correspondents Association of Nigeria, Joseph Tolorunse, the Legal Adviser and Secretary of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, explained that the import duty was originally introduced to protect local industries and encourage more investment in refining. He acknowledged that public reaction influenced the government’s decision to pause the rollout but insisted that the policy still holds significant long-term economic value.
Tolorunse noted that while prices might have risen in the short term, the overall benefits—more jobs, better product availability, and increased GDP—would have strengthened the economy in the long run.
Another industry expert, Henry Adigun, Managing Director of AHA Strategies Limited, said the government must engage more deeply with stakeholders before announcing policies with nationwide implications. He argued that imposing import duties would only make sense when Nigeria’s domestic production is strong enough to carry the load, adding that such a tariff would have been counterproductive at the moment.
Meanwhile, the Dangote Refinery has adjusted the ex-gantry price of Liquefied Petroleum Gas from N715 per kilogram to N800 per kilogram. The update, confirmed through data from Petroleumprice.ng, is the refinery’s first major review of the year and is expected to influence the retail cost of cooking gas as demand continues to rise amid ongoing supply challenges.
