Dangote Refinery More Expensive Than Lomé Depots, Marketers Complain
- Nigeria’s richest man, Aliko Dangote, has explained that his refinery is affected by offshore depots in West African countries
- Dangote disclosed that it costs more for Nigerians to lift fuel from his $20 billion refinery than from other depots in West Africa
- Meanwhile, Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) accused the refinery of a restrictive sales strategy
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Fuel marketers have disclosed why they continue to import petroleum products despite Nigeria’s $20 billion Dangote Refinery.
Dangote revealed his refinery is being undercut by offshore depots due to local port charges, while marketers accuse it of restrictive pricing and access policies.
Source: Getty Images
Marketers pay twice when loading from Dangote
Speaking at the Global Commodity Insights Conference in Abuja, Dangote said it now costs more for Nigerian marketers to lift petroleum products from his Lekki-based refinery than from floating terminals in Lomé.
Dangote explained that customers pay fees both at the point of loading and unloading in Nigeria.
In contrast, when importing from Lomé, the only applicable charge is at the point of discharge.
“This is unfair and unsustainable,” he said, warning that the extra cost structure discourages local refining in favour of imports, which undermines the country’s fuel self-sufficiency ambitions.
Cheap, toxic imports flood the West African market
Dangote also cautioned that Nigeria’s continued dependence on imported petroleum—69% of domestic demand—is not only economically damaging but also dangerous.
He said many imported fuels are substandard and would be banned in Europe or North America due to their low quality and toxicity.
Marketers confirm pricing frustration, cost pressure
Independent Petroleum Marketers Association of Nigeria (IPMAN) spokesperson, Chinedu Ukadike, clarified that some of the charges do not directly affect gantry-based local lifting but apply to coastal logistics.
He acknowledged that for coastal buyers, loading from Nigeria could still be favourable compared to importing, although costs are mounting.
Dangote accused of restrictive sales practices
Fuel marketers under DAPPMAN (Depot and Petroleum Products Marketers Association of Nigeria) accused the refinery of a “restrictive sales strategy.”
DAPPMAN’s Executive Secretary, Olufemi Adewole, said most marketers can’t access the product freely and are sidelined in favour of select buyers.
No price transparency, say frustrated marketers
According to Adewole, Dangote’s refinery withholds price information until late in the purchasing process, creating uncertainty.
“You don’t get the price upfront,” he said. “Only after you’ve been cleared do you get a proforma invoice.”
This practice, he claimed, disadvantages smaller marketers.
Regulators urged to prevent emerging monopoly
Major oil marketing players also warned of a looming monopoly.
Source: Getty Images
Punch reports that Clement Isong of the Major Energy Marketers Association of Nigeria said regulators must step in to maintain market fairness.
“If one player dominates, it’s no longer a market—it’s a monopoly,” he said.
Depot owners slash petrol prices
A prior report by Legit.ng disclosed that depot owners in Lagos have slashed petrol prices, intensifying pressure on the Dangote Refinery, which is already grappling with dwindling buyer interest.
On Tuesday, July 22, 2025, despite quoting N820.50 per litre for Premium Motor Spirit (PMS), the refinery experienced minimal activity.
Petroleum marketers are now adopting a cautious approach, holding off purchases amid strong indications that prices may dip further in the coming days.
Marketers undercut Dangote Refinery with low prices
Legit.ng previously reported that several filling stations have cut petrol prices below N900 per litre, days after Dangote Refinery slashed its ex-depot price by N40.
Many filling stations in Lagos and Ogun states now sell petrol at N875 and N890 per litre.
However, some petrol stations still sold the product above N900 per litre as of Sunday, July 6, 2025.
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Source: Legit.ng
