Aliko Dangote, Africa’s richest man and President of the Dangote Group, has expressed concerns over rising port charges and regulatory bottlenecks making it more expensive to load refined petroleum products from the $20 billion Dangote Refinery in Lekki than from offshore terminals in neighbouring Togo.
Speaking at the Global Commodity Insights Conference on West Africa’s refined fuel market, jointly organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Commodity Insights in Abuja, Dangote described the situation as “unfair and unsustainable.”
According to him, marketers lifting products domestically are subjected to multiple charges at both loading and discharge points, while importers sourcing from the Lomé Floating Storage Terminal only pay at the discharge point.
“It is currently more expensive to load a domestic cargo of petroleum products from the Dangote Refinery than from Lomé. This cost structure discourages local refining and makes imports more attractive,” Dangote lamented.
The billionaire industrialist warned that the current system undermines Nigeria’s quest for fuel self-sufficiency, while also keeping Africa dependent on cheaper, often toxic, imported petroleum products.
The Independent Petroleum Marketers Association of Nigeria (IPMAN), however, offered a different perspective. The association’s National Publicity Secretary, Chinedu Ukadike, clarified that the extra cost mostly applies to international buyers using coastal shipping routes, not to local marketers loading directly from the refinery’s gantry.
“For Nigerian distribution through coastal routes, local loading is still easier and cheaper because most international clearances are avoided,” Ukadike explained.
Meanwhile, oil and gas analyst Olatide Jeremiah, CEO of Petroleumprice, noted that imported petrol often has a lower octane rating, which significantly reduces its landing cost compared to locally refined premium-grade petrol.
While Dangote blames port charges for discouraging local lifting, petroleum marketers have raised fresh concerns over the refinery’s sales strategy.
Speaking during a panel session at the same conference, Olufemi Adewole, Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), alleged that the refinery operates a restrictive pricing and sales method.
“Many marketers have registered for supply but cannot access products because you don’t get the price upfront. It appears only a select group is preferred,” Adewole complained.
Similarly, Clement Isong, Executive Secretary of the Major Energy Marketers Association of Nigeria (MEMAN), cautioned against a market dominated by a single player.
“When one player begins to dominate, that’s no longer a competitive market — that’s a monopoly. Regulators must ensure balance,” Isong warned.
The Dangote Refinery, Africa’s largest, was commissioned to end Nigeria’s decades-long dependence on fuel imports and save foreign exchange spent on subsidy and importation. However, with marketers complaining of limited access and high loading costs, industry observers fear that the refinery’s full potential may be undermined unless regulatory and logistical reforms are implemented.
As Nigeria pushes to achieve full energy independence, analysts insist that collaboration between government regulators, marketers, and the refinery is crucial to strike a balance between profitability and accessibility.