The Dangote Petroleum Refinery and Petrochemicals has suspended its strategic discounted fuel supply scheme after uncovering alleged fraudulent practices by some affiliate marketers and strategic partners, sparking concerns about market distortion and profiteering in Nigeria’s downstream petroleum sector.
Investigations by the refinery revealed that some registered marketers were diverting discounted refined petroleum products meant for Dangote’s retail partners to non-registered third-party marketers.
The scheme, originally designed to support affiliate marketers with lower-priced products to ensure nationwide availability and affordability, was reportedly abused. These marketers allegedly sold their Authority to Collect (ATC) loading tickets to non-registered marketers, allowing them to lift products at discounted rates.
Instead of selling at their designated retail outlets, marketers resold directly from the refinery tarmac below the official gantry price, exploiting the price differential to make quick profits without bearing the costs of logistics, administrative compliance, or retail operations.
According to sources, the diverted products were sold at market rates, undermining the objectives of the scheme and causing a distortion in pump prices.
An industry expert, Olatide Jeremiah, confirmed that some affiliate marketers had also diverted credit-backed volumes meant to boost nationwide distribution. “They sell Dangote’s discounted products to other marketers at slightly higher rates, bypassing the intended retail system and making quick profits,” he explained.
The suspension was communicated in an official letter dated July 13, 2025, signed by Fatima Dangote, the Group Executive Director, Commercial Operations.
The statement titled “Suspension of the Strategic Partner Discounted Price” expressed deep concern over the widespread abuse of the system despite repeated warnings. It stated that the fraudulent practices threatened the long-term sustainability of the refinery’s gantry operations.
The refinery emphasized that all existing Product Release Notes (PRNs) issued at discounted rates before July 13 remain valid, and partners who had completed payment processes would still lift at the agreed discounted rate. However, no new discounted transactions will be approved until the scheme is restructured.
Following the suspension, checks at private depots indicated that non-affiliated marketers continue to sell at the same price range as Dangote’s registered partners, despite not benefiting from the refinery’s discounts.
Petroleumprice.ng data showed that the average ex-depot price dropped to N820 per litre, down from N835 per litre at the start of the week. Dangote’s registered partners previously enjoyed discounts of up to N10 per litre, receiving products at N815 per litre.
The refinery did not publicly name the erring marketers, but its list of strategic partners includes MRS Oil, Ardova Plc, Heyden Petroleum, Hyde Energy, Optima Energy, TotalEnergies, Techno Oil, Sobaz Nigeria Ltd, Virgin Forest Energy, and NU Synergy Ltd.
Despite the suspension, the refinery reassured its partners that the discount scheme would be restructured, not scrapped. “We are judiciously exploring other incentive schemes to reward our strategic partners,” the company stated.
The Dangote Group’s head of corporate communications, Anthony Chiejina, confirmed that the company is reviewing the situation but stressed that the refinery “is not in any conflict with marketers.”
The suspension has sparked mixed reactions in the oil and gas industry. While some stakeholders hailed the decision as necessary to protect market stability, others expressed fears that ending the discount scheme could trigger a hike in pump prices nationwide.
Industry analyst Jeremiah warned that the situation underscores the need for stricter regulatory oversight of distribution chains. “The refinery must enforce stricter compliance measures, or the downstream sector will remain vulnerable to sharp practices,” he added.
The suspension marks the first major operational shake-up at the 650,000 barrels-per-day Dangote Refinery since it commenced commercial operations. Market watchers believe that the refinery’s decision to halt the scheme temporarily could push some marketers to revert to imports, further impacting fuel pricing trends in the coming weeks.