The Dangote Group has reiterated that its plans to expand the Dangote Refinery will continue uninterrupted, despite the Federal Government’s decision to postpone the 15 per cent import duty on petrol and diesel until early 2026.
Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Industries Limited, said that the policy deferment will not impact the company’s strategy to raise refining capacity from 650,000 barrels per day to 1.4 million barrels per day. “This is a long-term strategic plan focused on the future, not on short-term developments,” he said.
Africa’s leading industrialist, Aliko Dangote, had announced last month that the refinery expansion would make it the world’s largest single-site refinery. Chiejina explained that the investment is intended to strengthen the company’s role as a key supplier of refined petroleum products for both domestic and international markets.
The government’s delay, approved by President Bola Tinubu, followed a request by the Federal Inland Revenue Service Chairman, Dr Zacch Adedeji. The request considered stakeholder consultations and market readiness, ensuring local refining infrastructure and operational frameworks are fully aligned before the levy takes effect.
The 15 per cent import duty, originally approved in October 2025, was designed to support domestic refining, stabilise fuel prices, and promote fair competition between local and imported products. Officials explained that the deferment provides fuel marketers with a “stability window” amid rising import costs and exchange rate pressures while allowing evaluation of domestic refining output in early 2026.
At the Energy Correspondents Association of Nigeria conference themed “Four Years of the PIA: Achievements, Gaps and the Road Ahead,” Joseph Tolorunse, Legal Adviser and Secretary of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, stated that the duty was meant to protect local industries, stimulate investment, and create economic growth. Public concerns prompted the temporary suspension to reassess the best approach.
Henry Adigun, Managing Director of AHA Strategies Limited, added that implementing such a tariff without sufficient local production could have negative consequences. He praised the government for reconsidering the policy while emphasising the importance of aligning tariffs with domestic refining capacity.
In a related market update, Dangote Refinery increased the ex-gantry price of Liquefied Petroleum Gas (LPG) from ₦715 per kilogram to ₦800/kg, marking the first significant adjustment of the year. The revision responds to rising domestic demand and market disruptions, which are expected to influence retail prices.
Despite policy shifts and market fluctuations, Dangote Group remains committed to its long-term vision of expanding refining capacity, aiming to solidify its position as a major player in Nigeria’s local and export petroleum markets.