NNPC, Not Dangote, Responsible for Fuel Crisis – Kelvin Emmanuel
Energy analyst and co-founder of Dairy Hills, Kelvin Emmanuel, has stated that the Nigerian National Petroleum Company Limited (NNPC)—not the Dangote Refinery—should be held accountable for Nigeria’s ongoing fuel distribution challenges.
Speaking on ARISE News, Emmanuel asserted that Aliko Dangote is merely operating within the constraints of a failed system, which successive governments and regulators have left broken for over two decades.
“Dangote is not a regulator; he’s simply a market participant. The real failure lies with the NNPC and its regulatory bodies, which have allowed the downstream sector to collapse,” Emmanuel said.
He dismissed criticism of Dangote’s reliance on truck-based distribution—often blamed for worsening Nigeria’s poor road infrastructure—as misdirected. He emphasized that transport infrastructure like railways and barges is the federal government’s responsibility, not that of private operators.
“Rail is on the exclusive legislative list. Until the government opens up access, the private sector can’t intervene. Dangote is just doing what he can within the limitations of the current system,” he added.
Systemic Failures and Unpaid Claims
Emmanuel highlighted long-standing inefficiencies in Nigeria’s fuel distribution system—from decrepit pipelines to unpaid subsidy claims. He revealed that NNPC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) still owe independent marketers N1.8 billion in unpaid bridging claims, contributing to persistent fuel shortages across the country.
He further criticized regulatory loopholes and inconsistent policies that have allowed some marketers to exploit the system for profit—often by importing substandard fuel products.
“Most marketers weren’t making money from fair petrol margins. They profited from loopholes and quality compromises. But under the Petroleum Industry Act, those shortcuts are no longer available to players like Dangote,” Emmanuel said.
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Dangote’s CNG Trucks Not a Long-Term Fix
He acknowledged Dangote’s deployment of thousands of Compressed Natural Gas (CNG)-powered trucks as a temporary solution, not a sustainable one.
“Dangote is absorbing the cost of storage, transportation, and delivery because the national infrastructure is broken. If NNPC had done its job, he wouldn’t need to.”
Call for Government-Led Reform
Emmanuel concluded that the crisis can only be resolved through a comprehensive overhaul of Nigeria’s oil and gas logistics, spearheaded by government reforms and infrastructure investment.
“Dangote has filled a gap left by NNPC’s failure. But one private refinery can’t solve a nationwide fuel distribution crisis. The regulators must act.”
The Dangote Refinery, now fully operational, is the largest single-train refinery in Africa, and has commenced national distribution of petrol and diesel. Yet, as Emmanuel suggests, its success depends heavily on the government fixing the underlying systemic issues in Nigeria’s fuel supply chain.
