Nigeria’s petroleum downstream sector is facing fresh tension as fuel marketers continue large-scale importation of Premium Motor Spirit (PMS), despite the Dangote Refinery recording a historic milestone by exporting petrol to the United States.
Industry data confirmed that a shipment of 300,000 barrels of petrol left the Dangote Refinery in Lekki, Lagos, on August 26, and is expected to arrive in New York and New Jersey on September 12.
This marks the refinery’s first-ever petrol delivery to the US, signaling a major breakthrough for Nigerian refining capacity and its positioning in the global oil market.
Despite Dangote’s breakthrough, fuel marketers in Nigeria have maintained their preference for imported petrol.
According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), over 1.48 billion litres of imported petrol were supplied in June 2025 alone, while Dangote Refinery contributed only 455 million litres to the domestic market.
This trend reflects the country’s long-standing dependence on imports, even as the refinery has a processing capacity of 650,000 barrels per day.
At full operation, it can produce about 210,000 barrels of PMS daily, nearly meeting Nigeria’s estimated consumption of 300,000 barrels per day.
A breakdown of the NMDPRA report also showed that imports dominate diesel and aviation fuel supplies, with imports accounting for as much as 87% of diesel consumed in June.
The refinery, owned by Africa’s richest man, Aliko Dangote, has been diversifying its markets as it faces stiff competition at home.
S&P Global data confirmed that the medium-range vessel Gemini Pearl carried the inaugural petrol export to the US, under a private bilateral deal.
Since commencing operations in 2024, Dangote Refinery has steadily expanded exports to African markets including Ghana, Cameroon, and Angola, as well as Asia and the Middle East.
By July 2025, exports had reached over 1.35 billion litres of petrol, turning Nigeria into a net exporter of refined products for the first time in decades.
Dangote has consistently argued that his $20 billion refinery is capable of meeting domestic demand while also generating foreign exchange earnings.
He insists, however, that unfair competition from substandard and subsidised imports threatens local refining viability.
Fuel marketers, however, remain cautious.
The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, welcomed Dangote’s export feat but stressed that traders will always prioritize profit margins.
“If buying from the Dangote refinery offers better terms, importers will certainly buy.
But if other sources provide a stronger margin, they are free to import as long as fuel quality is not compromised,” he told reporters.
Gillis-Harry also rejected Dangote’s accusation that marketers were importing toxic or subsidised Russian fuel, saying only the NMDPRA has the constitutional authority to regulate quality standards.
At a recent industry conference, Dangote urged the Federal Government to extend its “Nigeria First” policy to petroleum products, banning unnecessary imports that undermine local production.
He claimed that discounted Russian petroleum products and other low-grade fuel imports were being dumped in Nigeria, forcing refiners to sell below cost.
“This creates an uneven playing field and discourages further investment,” Dangote warned.
He also highlighted that Nigerian fuel was now selling for about 60 cents per litre, even lower than in Saudi Arabia, due to heavy dumping of cheap imports.
The clash between Dangote Refinery’s expansion drive and marketers’ import strategies has raised critical questions about the future of Nigeria’s downstream sector.
On one hand, Dangote’s global exports represent a step toward energy independence and forex earnings.
On the other hand, the dominance of imports suggests that pricing, subsidies, and market structures still tilt in favour of foreign traders.
Energy analysts believe that unless the government enforces policies that prioritize local refining, Nigeria could miss the opportunity to fully benefit from Africa’s largest refinery.
For now, Dangote’s petrol has broken into the US market, while Nigerian marketers continue to rely heavily on imports, prolonging a long-standing paradox: the world’s sixth-largest oil producer still depends on foreign fuel to power its economy.