The Dangote Group has strongly dismissed allegations that its refinery sells petrol to foreign traders in Togo at rates cheaper than those offered to Nigerian marketers.
The clarification comes after the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) accused the refinery of price discrimination, fueling a debate that has far-reaching implications for Nigeria’s domestic fuel market.
DAPPMAN’s Executive Secretary, Olufemi Adewole, had claimed in an interview that Nigerian marketers sometimes find it more economical to purchase petrol indirectly from international traders in Lomé, Togo, at prices allegedly ₦65 cheaper than what Dangote offers directly in Nigeria.
He suggested that this pricing disparity undermined local operators who are struggling to remain competitive in a volatile energy market.
In response, the Dangote Group issued a statement on Monday categorically rejecting the allegations.
The company described DAPPMAN’s assertions as “misleading and inaccurate,” stressing that a simple check of market realities in Togo proves the claims untrue.
“It is incorrect to claim that the price of petrol in Togo is lower than in Nigeria,” the refinery stated.
“The average pump price in Lomé currently stands at about 680 CFA francs per litre, which translates to roughly ₦1,826.
This figure is more than double Nigeria’s regulated pump price of ₦865 per litre.”
According to the refinery, Nigeria remains the most affordable source of petrol feedstock across West Africa, despite the fact that Dangote Refinery imports over 60 percent of the crude oil it processes.
By positioning Nigeria as the hub for regional fuel supply, the group said it has prevented widespread scarcity and stabilized access to petroleum products across the country.
Dangote went further to accuse some marketers of exploiting arbitrage opportunities by engaging in “round-tripping.”
This practice involves buying petrol locally, shipping it to Togo or other neighbouring markets where pump prices are significantly higher, and then re-importing or diverting the products back into Nigeria at inflated rates.
“The reality is that for some operators, the business has never truly been about supplying the Nigerian market,” the group argued.
“Instead, it has been about exploiting arbitrage opportunities, where products can easily triple in value once diverted to more lucrative sub-regional markets.”
The refinery questioned the business logic behind these practices, pointing out that the costs of transporting products from Lomé back to Lagos run into billions of naira—an expense that ultimately contributes to higher prices for Nigerian consumers.
The Dangote Group also stressed that its direct Nigerian partners enjoy preferential terms designed to boost affordability and availability. These include volume-based discounts, credit facilities, and logistical support.
“If their true intention is to serve the Nigerian domestic market, why not join the growing list of local partners of the Dangote refinery?” the statement asked.
“These partners, aside from receiving high-quality products, also benefit from incentives that make fuel more accessible across Nigeria.”
The company clarified that petrol pricing can differ depending on the point of purchase. Products sourced from Single Point Mooring (SPM) facilities often involve different logistics compared to those obtained directly from the gantry.
Smuggling through maritime routes may seem easier, the company noted, but transporting fuel across land borders presents additional risks and costs.
Dangote insisted that it remains committed to ensuring affordable domestic supply, while warning against narratives that misrepresent the refinery’s operations.
The clash between Dangote and petroleum marketers highlights deep tensions within Nigeria’s downstream oil sector.
On one hand, marketers argue that pricing dynamics put them at a disadvantage, while on the other, Dangote refutes claims of cheaper petrol sales in Togo and emphasizes its role in stabilizing Nigeria’s energy market.
Industry stakeholders caution that if left unresolved, the dispute could disrupt supply chains and trigger artificial scarcity.
For Nigeria, Africa’s largest oil producer, the stakes are high. Fuel affordability, consumer protection, and energy security remain central to the government’s reform agenda.
Experts also note that the Dangote refinery, as the largest single-train refinery in the world, has the capacity to transform Nigeria from a net importer of refined products into a regional export hub.
However, sustained cooperation between the refinery and local marketers will be key to realizing this potential.
For millions of Nigerians, the controversy is more than a corporate spat—it directly affects household expenses, transportation costs, and inflation.
As Dangote refutes claims of cheaper petrol sales in Togo, questions linger about the transparency of pricing structures, the role of middlemen, and the government’s ability to enforce market discipline.
Observers believe that reconciling these differences requires a collaborative approach where both the refinery and marketers align on their primary responsibility: ensuring a steady, affordable, and accessible fuel supply for Nigerian consumers.
Until then, the spotlight remains firmly on Dangote and DAPPMAN as the battle over pricing, distribution, and regional trade continues to shape Nigeria’s downstream petroleum sector.
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