The Dangote Group has insisted that the Federal Government’s deferment in the implementation of the 15 per cent import duty on petrol and diesel will not alter its long-term refinery expansion plans.

It stressed that the company remains focused on scaling up its production capacity to 1.4 million barrels per day. The Group Chief Branding and Communications Officer of Dangote Industries Limited, Anthony Chiejina, told Sunday PUNCH on Friday that the policy shift has no bearing on the company’s strategy or timelines.

Recall that last month, Africa’s foremost industrialist, Aliko Dangote, announced plans to expand the capacity of Dangote Refinery from 650,000 barrels per day to 1.4 million barrels per day, making it the largest refinery in the world upon completion.

“No. The policy deferment cannot stop the company’s strategic efforts to upgrade the refinery to a 1.4 million barrels per day capacity. How can it stop?” he said. “This is a strategic issue that was taken for the organisation to grow. We are thinking about tomorrow. We are not thinking about today at all.”

Chiejina explained that the refinery expansion remains a forward-looking investment designed to position the company as a major supplier of refined products for domestic and export markets.

“The 1.4 million barrels per day is a strategic thinking of the organisation. It’s for tomorrow, not for today,” he added, dismissing concerns that the tariff suspension could slow down the refinery’s market positioning or discourage investment in local refining.

The PUNCH had reported that the Federal Government has approved the postponement of the implementation of the 15 per cent import duty on petrol and diesel until the first quarter of 2026, contrary to earlier notions that the suspension was indefinite.

The deferment, formally approved by President Bola Tinubu, was in response to a detailed request submitted by the Executive Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji, following extensive strategic consultations with key stakeholders to assess market readiness and ensure a smooth and orderly rollout of the 15 per cent import duty.

Adedeji made the request in a letter dated November 7, 2025, titled “Deferment of the Commencement of the Implementation of the Premium Motor Spirit (petrol) and Diesel Import Duty.”

The letter obtained exclusively by our correspondent on Thursday stressed the need to ensure that local refining infrastructure is fully prepared, technical and operational frameworks are properly aligned, and fuel supply disruptions are minimised before the levy takes effect.

The duty, originally approved on October 21, 2025, was aimed at boosting domestic refining capacity, stabilising downstream fuel prices, and promoting fair competition between imported and locally produced fuels.

The move, according to government officials, is meant to provide a “stability window” for fuel marketers amid rising landing costs and exchange rate pressures, as well as give room for the assessment of domestic refining output in the first quarter of 2026.

However, the Dangote Group maintained that its long-term expansion plan, aimed at boosting capacity from 650,000bpd to 1.4 million bpd, remains on track and insulated from short-term policy fluctuations.

Despite the temporary tariff suspension, Dangote says its focus is unchanged: “We are thinking about tomorrow.”

At the maiden edition of the Energy Correspondents Association of Nigeria conference themed “Four Years of the PIA: Achievements, Gaps and the Road Ahead,” the Legal Adviser and Secretary of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Joseph Tolorunse, explained that the proposed import duty was conceived to create a level playing field for all stakeholders, protect local industries, and stimulate investment and economic development.

He, however, said due to public outcry, the government has stepped it down for now with a view to reconsidering and looking at the best approach to the issue. Tolorunse also argued that if the policy had gone through, the price would have gone up, but the country would have benefited from it.

He said there would have been more employment, product availability and an increase in Gross Domestic Product.

He said, “The Government wants to provide a level playing ground for everybody. And also, the government’s intention is to protect local industries so as to stimulate investment and economic development for the country. And I think that was what informed the government initially. But I think the government, being very sensitive to public outcry in some instances, has deemed it fit to step it down for now.”

“But I think it’s because the government has seen that, okay, let’s take a second look at this policy and look at the best approach to the issue. If the policy has gone through, in the short run, perhaps the price may go up, bin in the long run, the country will benefit from it. There will be more employment. There will be more products in the country. We are protecting the industry. Our GDP will increase. And even at the end of the day, that will stimulate investment.”

Also speaking on the suspension of the import duty tax at the event, the managing director, AHA Strategies Limited, Henry Adigun, said it behoves the government to consult widely before coming out with a decision that will have a lasting impact on Nigerians.

He said such a decision (import duty tax) would have made a lot of sense only if there was enough local oil production, which would discourage importation.

He said, “Nigerians don’t understand what’s good for them. Nigerians always are confused a lot of times about what is best for them. In a country where you don’t have sufficient local production and you still need to import to balance your local production, why would you put a tariff on those who are importing? But once you get sufficient locally, then you can put tariffs to discourage others. I’m glad it was reversed, but it comes to question the kind of policy the government comes out with.”

Meanwhile, the Dangote Refinery has increased the ex-gantry price of Liquefied Petroleum Gas, commonly known as cooking gas, from N715 per kilogram to N800/kg, marking its first major adjustment of the year. This is according to a price update provided by Petroleumprice.ng on Friday.

The revision comes amid ongoing market disruptions and rising domestic demand and will likely increase the cooking gas price per kilogram.