Dangote Refinery May Not Bring Down Petrol Prices – NLC

Nigerian Labour Congress Raises Concerns Over Dangote Petrol Refinery's Potential Impact on Petroleum Sector and Fuel Prices

In the midst of the fuel subsidy removal controversy, the Nigerian Labour Congress (NLC) has raised doubts about the ability of the recently inaugurated Dangote Petrol Refinery to adequately meet the needs of Nigerians and reduce the prices of petroleum products in the country.

Dangote Refinery May Not Bring Down Petrol Prices - NLC
NLC president, Joe Ajaero,

During an appearance on Channels Television’s Sunrise Daily on Wednesday, the President of the NLC, Joe Ajaero, expressed his views on the matter.

While acknowledging the commendable efforts put into the establishment of the Dangote Refinery, Ajaero emphasized that this refinery alone may not be the ultimate solution to the challenges faced by the petroleum sector.

Ajaero remarked, “Firstly, I commend Dangote Refinery for its construction, but we must be cautious about allowing the market to be dominated, particularly in the private sector. We have already witnessed this concerning cement production. Now, we must question what the Dangote Refinery will produce and whether it will be sufficient.”

“He has done a remarkable job building a refinery, but if three or four companies of similar capacity join the refining industry, we would be talking about healthy competition,” Ajaero continued.

While recognizing the achievements of Dangote as a patriotic Nigerian, Ajaero stressed the importance of competition and deregulation in the petroleum sector. He posed a critical question, “So, Dangote has done well, but can Dangote’s refinery cater to 30% of the petroleum needs of Nigerians?”

The NLC president’s remarks have sparked a debate on the extent to which the Dangote Refinery will contribute to meeting the growing demands for petroleum products in Nigeria.

As concerns continue to mount over rising fuel prices and the removal of fuel subsidies, industry experts are weighing in on the potential impact of the Dangote Refinery and the need for increased competition in the sector.

Meanwhile, the Dangote Group, led by Africa’s wealthiest man, Aliko Dangote, remains optimistic about the positive influence of the refinery on the country’s petroleum industry. The refinery, located in the Lekki Free Trade Zone, Lagos, is expected to have a refining capacity of 650,000 barrels per day, making it the largest single-train refinery in the world.

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