Tensions are flaring between Dangote Refinery and Nigerian petroleum marketers as Aliko Dangote, President of the Dangote Group, recently claimed that marketers have not approached his refinery to source fuel directly. This comes amid lingering public frustration over fuel prices, which have continued to climb despite expectations that the refinery’s operations would offer relief.
Since the rollout of premium motor spirit (PMS) from Dangote Refinery in September, expectations have been high for lower fuel costs. However, prices have surged instead, leaving consumers and marketers in an uneasy standoff. “We don’t want the back and forth among stakeholders,” a source remarked, noting that public interest lies in affordable and available petrol, not industry disputes.
After a recent meeting with President Bola Tinubu, Dangote announced his refinery’s readiness to supply 30 million litres per day. “At full capacity, we can even supply whatever is being consumed because what I estimated as our consumption is about 30-32 million litres,” he stated. “As we speak today, we have 500 million litres in our tanks… even if there is no production or import, that will take the country more than 12 days.”
Yet many marketers have pushed back, arguing that high pricing from Dangote Refinery has kept them from lifting products. “If you have a shop and people don’t come to buy your wares, what do you do?” one marketer asked, adding, “Dangote is a private business, like the rest of us… It is an open market, and everyone must compete. If you have good terms, customers would come to you.” Another marketer revealed that they recently imported PMS at N970, below Dangote’s reported N977 rate, remarking, “If it was cheaper, everybody would be buying from him.”
For the Independent Petroleum Marketers Association of Nigeria (IPMAN), challenges are more complex. IPMAN President Abubakar Maigandi expressed frustration, saying, “We are willing to buy the product directly if the refinery is ready to sell to us, but for now, our members can’t access it even after paying.” Former IPMAN Chairman Akinrinade Akinade added, “Dangote Refinery had an instruction from the Minister of Finance to sell directly to IPMAN members, but they said they had a standing contract with NNPC and… cannot deal with IPMAN.”
The Executive Secretary of the Major Energy Marketers’ Association of Nigeria (MEMAN), Mr. Clement Isong, echoed industry concerns, saying, “The market prefers to buy from him as a local refiner… given that we have cut out freight transportation. We are very happy to buy from him at the best price.”
Dangote Group’s Chief Branding and Corporate Communications Executive, Mr. Tony Chiejina, maintained the refinery’s long-term commitment, stating, “Our refinery has come to stay and it will serve Nigeria well.” He added that it should be a national achievement that a Nigerian company finally broke the 39-year reliance on imported petrol.