The Dangote Group has dismissed claims by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) that its refinery sells petrol to international traders in Togo at lower prices than those offered to Nigerian marketers.
DAPPMAN’s Executive Secretary, Olufemi Adewole, alleged in an interview that Nigerian marketers were forced to purchase petrol through international traders in Lomé, Togo, at rates as much as N65 cheaper than the prices the Dangote Refinery directly charges within Nigeria. He further argued that this pricing structure sometimes made importing fuel from overseas more cost-effective for local marketers than buying directly from Dangote.
“Dangote sells to international traders at N65 less than what he sells to us. In some cases, we were able to buy from these traders and still bring it back into Nigeria,” Adewole claimed.
Dangote Responds
In a swift reaction, the Dangote Group described the allegations as “misleading and inaccurate.” The company argued that the claims did not align with basic price checks. According to the refinery, petrol pump prices in Togo are significantly higher than in Nigeria, contrary to DAPPMAN’s assertions.
“It is incorrect to claim that petrol in Togo is cheaper than in Nigeria. A simple verification shows that the average pump price in Lomé is about 680 CFA francs per litre, equivalent to N1,826,more than double Nigeria’s N865 per litre,” the company said in its statement.
Dangote stressed that its refinery has positioned Nigeria as the most reliable and affordable source of petrol in West Africa, despite the fact that it imports more than 60 percent of the crude oil it refines.
Allegations of Round-Tripping
The refinery further accused some marketers of engaging in round-tripping—buying products from Nigeria, routing them through Togo, and then re-importing them into Nigeria at inflated costs. It questioned the logic behind such practices, noting the additional transportation costs from Lomé to Lagos run into billions of naira.
“It is increasingly clear that DAPPMAN and some of its members are more invested in importation and arbitrage than in domestic supply. What business sense does it make to incur additional costs transporting products from Lomé back to Nigeria if their true intent is to serve the local market?” the company queried.
Benefits for Local Partners
The Dangote Group pointed out that local marketers who partner directly with the refinery already enjoy numerous advantages, including volume-based discounts, credit facilities, and logistical support. These incentives, it said, ensure that petroleum products remain both affordable and widely available across Nigeria.
“If their intention is genuinely to serve Nigerian consumers, why not join the growing list of our local partners? These partners benefit not only from reliable product supply but also from support systems that promote affordability and stability in the domestic market,” the statement added.
The company also clarified that pricing differences exist depending on the mode of purchase, whether through Single Point Mooring (SPM) facilities or gantry loading. Smuggling through SPM, it explained, is easier than transporting products across land borders, which is far riskier and costlier.
Market Arbitrage Concerns
Dangote argued that for some operators, the fuel trade has never been about serving Nigerian consumers but about exploiting arbitrage opportunities. By diverting products to other West African markets where prices are far higher, these operators triple their profits at the expense of Nigeria’s energy stability.
“The reality is that for some players, the business has never been about Nigeria’s domestic supply. It is about chasing arbitrage opportunities where they can multiply their earnings by diverting products to more lucrative regional markets,” the company maintained.
Ongoing Dispute
The standoff between Dangote and petroleum marketers highlights mounting tension in Nigeria’s downstream oil sector, as both the government and industry players seek to stabilise prices and ensure adequate supply. While DAPPMAN insists that its members are disadvantaged in pricing, Dangote maintains that its refinery is strengthening Nigeria’s energy security and positioning the country as the cheapest petrol hub in West Africa.
Industry stakeholders warn that resolving this dispute will be critical to sustaining consumer confidence, ensuring steady supply, and safeguarding the nation’s economic stability.
