The Dangote Group has dismissed allegations by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) that its refinery sells petrol to international traders at lower rates than to Nigerian marketers.
DAPPMAN’s Executive Secretary, Olufemi Adewole, had alleged that some marketers purchased Dangote petrol through international traders in Lomé, Togo, at prices about N65 cheaper per litre than what the refinery offers locally. He claimed this sometimes made it more viable to import fuel than to buy directly in Nigeria.
Dangote’s Response
In a statement issued on Monday, the Dangote Group described the claims as “misleading and inaccurate,” insisting that the refinery prioritises Nigeria as its main market.
“It is incorrect to claim that the price of petrol in Togo is lower than in Nigeria. A straightforward check reveals that the average pump price in Lomé is around 680 CFA francs per litre (about N1,826)—more than double the pump price in Nigeria at N865 per litre,” the statement said.
The company also noted that over 60% of the crude oil it processes is imported, yet it has still positioned Nigeria as the most affordable fuel hub in West Africa.
Round-Tripping Allegations
Dangote accused some marketers of engaging in round-tripping practices—buying Nigerian-produced petrol, routing it through Togo, and re-importing it at inflated prices.
“It is increasingly evident that DAPPMAN and some of its members are disproportionately focused on the importation of refined products, even admitting to round-tripping. What then is the rationale, especially given the extra costs of transporting products from Lomé to Lagos?” the refinery queried.
Incentives for Local Partners
Dangote further explained that Nigerian partners working directly with the refinery enjoy benefits such as volume-based discounts, credit facilities, and logistics support, which help keep prices stable and products available nationwide.
The company also clarified that price differences exist depending on whether petrol is lifted at the Single Point Mooring (SPM) facilities or at the gantry, with the former often exploited for smuggling.
Industry Implications
The dispute highlights growing tensions between Nigeria’s largest private refinery and petroleum marketers at a time when the government is seeking to stabilise fuel prices and strengthen energy security.
While DAPPMAN insists local marketers are disadvantaged in pricing, Dangote maintains its operations ensure that Nigeria remains the most affordable fuel supply hub in the region, warning that arbitrage-driven practices undermine the domestic market.
