Oil entrepreneurs beneath the aegis of the Petroleum Merchandise Retail Retailers Homeowners Affiliation of Nigeria have rejected the choice by the Dangote Petroleum Refinery to promote refined petroleum merchandise in {dollars}.

PETROAN urged the Federal Authorities to not permit the Lagos-based plant to promote in {dollars} to Nigerian entrepreneurs. The affiliation’s President, Billy Gillis-Harry, disclosed this on Tuesday in a chat with newsmen.

This got here because the refinery intensified the export of gas to international nations, exporting about two million barrels of aviation gas to the US.

Additionally, the Producers Affiliation of Nigeria declared that the manufacturing of polypropylene by the Dangote refinery would revive Nigeria’s struggling textile business and save the nation $267m in import prices.

Final week, the Dangote refinery introduced that it might not promote gas to prospects in naira because the Federal Authorities had suspended the sale of crude to the power in naira.

Reacting to this on Tuesday, the PETROAN chief stated the announcement by Dangote created pressure amongst entrepreneurs who now panic-buy petrol over worry of doable shortage or value surge.

Based on him, permitting the sale of gas in {dollars} will damage the economic system, deliver undue stress, and worsen inflation.

“PETROAN opposes the sale of petroleum merchandise or some other merchandise inside Nigeria in {dollars}. We consider that such a follow would have an antagonistic impression on the economic system, bringing undue stress on international foreign money and exacerbating Nigeria’s already difficult inflationary state of affairs.

“We urge the federal government to make sure that all transactions throughout the nation are carried out within the native foreign money, the naira, to guard the economic system and the welfare of Nigerians,” he acknowledged.

PETROAN additionally raised issues over the nation’s lack of ability to satisfy the rising demand for petroleum merchandise regardless of the operationalisation of three native refineries in Nigeria.

It famous that although efforts have been being made to spice up native manufacturing, the provision from these refineries was nonetheless inadequate to satisfy the nation’s wants.

In an announcement signed by the affiliation’s Nationwide Public Relations Officer, Dr Joseph Obele, PETROAN highlighted that the Nigerian Nationwide Petroleum Firm Restricted has two purposeful refineries, whereas the 650,000 barrels per day capability Dangote refinery can also be in operation.

Additionally, a number of modular refineries and importers are contributing to the petroleum provide chain.

However the affiliation famous that the native manufacturing of a mixed capability of about 835,000 barrels per day can’t adequately cater to the nation’s day by day petroleum demand.

The entrepreneurs talked about that with the present shortfall of native manufacturing capability, the window for importing petroleum merchandise should stay open.

PETROAN argued that permitting the importation of petroleum merchandise would assist keep a steady and sustainable provide within the nation, whereas additionally fostering wholesome competitors and maintaining costs beneath management.

“PETROAN stays a robust advocate for the native manufacturing of petroleum merchandise. We consider that selling native manufacturing won’t solely assure vitality safety but in addition create jobs and stimulate financial development.

“We additionally acknowledge that native manufacturing alone will not be enough to satisfy the nation’s demand for petroleum merchandise. Due to this fact, PETROAN helps the place that the window for importation of petroleum merchandise ought to stay open. This can be certain that the nation has a steady and sustainable provide of petroleum merchandise, whereas additionally selling competitors and maintaining costs in verify.

“We’re optimistic that the Ministry of Petroleum Assets will proceed to work in the perfect curiosity of Nigeria and give you insurance policies and options that may make sure the sustainable provide of petroleum merchandise,” the assertion added.

The affiliation additionally expressed concern over the current panic shopping for of petroleum merchandise that has been noticed nationwide following the short-term suspension of gross sales in naira by the Dangote refinery.

Based on the group, this case mustn’t function a justification for panic shopping for.

“We want to reassure the general public that this isn’t a purpose for panic. There is no such thing as a scarcity of petroleum merchandise,” PETROAN acknowledged, urging Nigerians to stay calm and proceed their day by day actions with out worry of shortage.

The affiliation additional emphasised that the Federal Authorities, the Ministry of Petroleum, and related regulatory companies are dedicated to making sure a seamless provide of petroleum merchandise.

Dangote exports JetA1

The Dangote Petroleum Refinery’s export of aviation gas (JetA1) to the US is about to problem home producers’ economics within the largest fuel-consuming nation.

Six vessels carrying about 1.7 million barrels of jet gas from the Dangote refinery arrived at US ports this month, in accordance with information from ship-tracking service Kpler.

One other vessel, Hafnia Andromeda, is about to reach on the Everglades terminal on March 29. 2025, with a load of about 348,000 barrels of jet gas.

A report by Reuters acknowledged that US jet gas imports are set to hit a two-year excessive in March after Nigeria’s Dangote refinery pushed barrels of Jet-A1 to North America. This could decrease the costs of the gas within the peak summer season journey season, in accordance with commerce analysts and storage brokers.

“The shipments by the 650,000 barrels-per-day Dangote refinery, Africa’s largest, spotlight its potential to reshape world gas buying and selling dynamics by creating a brand new swing provider within the Atlantic Basin,” Reuters acknowledged.

The report added that the refinery had already proven indicators of success in competing with European refiners on gasoline exports, saying the jet gas shipments to the US may problem home producers’ economics.

The overall US jet gas imports in March stood at round 226,000 bpd, essentially the most since February 2023, the information confirmed.

The Dangote refinery began manufacturing in January 2024 after years of building delays. It ramped up manufacturing to about 85 per cent of its 650,000 capability in February, permitting it to promote extra gas to worldwide markets.

The refinery is planning to hit full capability this month, however it might be constrained by crude challenges, particularly because the Federal Authorities has reportedly suspended the naira-for-crude deal.

In the meantime, the Dangote refinery is unlikely to be an everyday jet gas provider to the US, as a maintenance-related shutdown of the Phillips 66 Bayway refinery in New Jersey helped open a uncommon arbitrage alternative for flows from Nigeria to the US, Sparta Commodities analyst James Noel-Beswick informed Reuters.

“The window is prone to shut quickly or shrink considerably as a consequence of elevated US inventories of the aviation gas,” Noel-Beswick was quoted.

It was learnt that the demand to lease storage tanks for jet gas in Houston and New York Harbor in April is averaging round 700,000 barrels on storage dealer TankTiger’s platform, 5 to 6 occasions the common month-to-month demand, in accordance with TankTiger’s Chief Working Officer, Steven Barsamian.

The surge in demand, partly because of the inflow of provide from Nigeria, is prone to decrease jet gas costs within the US forward of peak summer season journey season, Barsamian stated.

Polypropylene manufacturing

The Producers Affiliation of Nigeria stated on Tuesday that the manufacturing of polypropylene by Dangote will revive Nigeria’s struggling textile business and save the nation $267m in import prices.

The Director-Normal of MAN, Segun Ajayi-Kadir, acknowledged this in an interview on Channels Tv’s Enterprise Integrated. Ajayi-Kadiri highlighted the struggles of the textile business, which he stated was as soon as thriving and employed over 25,000 employees within the northern area alone.

He defined that many firms have been pressured to close down because of the absence of native polypropylene manufacturing and the shortage of international alternate required for imports.

He additional acknowledged that the manufacturing of polypropylene by the Dangote Refinery and Petrochemicals will be certain that Nigeria, which presently imports 90 per cent of its annual polypropylene necessities of about 250,000 metric tonnes will now turn out to be a internet exporter, producing international alternate to strengthen the economic system.

“For us within the manufacturing sector, it is a welcome improvement. It greater than covers the 250,000 metric tonnes that represent our nationwide demand, which has been severely missing. You may think about the sectors it can impression—the textile business, the plastic business, the furnishings business.

“We’re taking a look at an quantity within the area of $267m being saved. That is the quantity spent yearly in scarce {dollars} to import these supplies. It’s a welcome improvement for producers, as it can incentivise funding within the sector,” he stated.

Ajayi-Kadir, who lamented how the collapse of the textile business led to widespread unemployment, acknowledged that with the native manufacturing of polypropylene, producers will not must depend on imported polypropylene.

This, he added, will assist scale back their prices and enhance effectivity.

“Now we have seen the worldwide development of the textile business counting on the petrochemical business. So, you’ll be able to think about what a lift that is going to deliver to the sector.

“And that it’s now accessible regionally and doesn’t require that we proceed to search for international alternate to have the ability to meet our calls for. It’s cheering information for producers,” he added.

The producer urged the Federal Authorities and different stakeholders to help the native manufacturing of polypropylene by way of incentives, stating that this might appeal to extra investments into the sector and enhance producers’ contributions to GDP.

Ajayi-Kadir added that this might considerably assist the federal government’s purpose of reaching a $1tn economic system.

“If the economic system goes to avoid wasting $267m in imports at a time when the present authorities is striving to create a $1tn economic system, it is a important saving, particularly contemplating the shortage and inadequacy of international alternate provide. Once we see champions like this blazing the path, exhibiting that we will even turn out to be a internet exporter, it’s actually worthy of help.

“The NNPC has a capability of 13,000 metric tonnes. Once you add this to what Indorama has, together with the large provide we may have from Dangote, we’ll turn out to be a internet exporter. This implies all our imports from Saudi Arabia, South Africa, South Korea, China, and India can be eradicated. We are able to now goal for self-sufficiency and even export for international alternate,” he added.

Dangote’s $2bn Petrochemical Plant in Ibeju-Lekki, Lagos, is designed to provide 77 grades of polypropylene. With a capability of 900,000 metric tonnes per yr and a turnover of $1.2bn, it goals to satisfy the rising demand in plastic processing industries globally.

The plant is anticipated to spice up funding in downstream industries, create jobs, enhance tax revenues, scale back international alternate outflow, and contribute to the nation’s GDP development.