The Dangote Group has firmly rejected allegations by the Depot and Petroleum Products Marketers Association of Nigeria that its refinery sells petrol at significantly lower rates to international traders compared to Nigerian marketers, describing the claims as misleading and inaccurate.
The controversy erupted following statements by DAPPMAN’s Executive Secretary, Olufemi Adewole, who alleged in a recent interview that association members were purchasing Dangote petrol through international traders in Lomé, Togo, at prices ₦65 cheaper than domestic rates. Adewole claimed that this pricing disparity enabled Nigerian marketers to buy the product internationally and still transport it back to Nigeria at competitive rates.
In a detailed response issued on Monday, Dangote Group challenged the fundamental premise of DAPPMAN’s allegations, particularly questioning the claimed price advantage in Togo. The company pointed out a significant discrepancy between Nigerian and Togolese pump prices, noting that while petrol sells for ₦865 per litre in Nigeria, the cost in Togo is substantially higher.
According to Dangote’s statement, a straightforward market check reveals that the average pump price in Lomé stands at approximately 680 CFA francs per litre, which translates to ₦1,826 when converted to Nigerian currency. This figure directly contradicts DAPPMAN’s assertion that petrol is available at lower prices in Togo than in Nigeria.
The refinery company emphasized its role in positioning Nigeria as the primary source of affordable petrol feedstock for the West African region, despite importing more than 60 percent of the crude oil it processes. Dangote argued that this achievement demonstrates the company’s commitment to regional energy security and affordability.
More seriously, Dangote accused some marketers of engaging in round-tripping practices, whereby they purchase petrol from Nigeria, route it through Togo, and subsequently re-import it at inflated prices. The company questioned the business rationale behind such practices, particularly given the substantial additional costs associated with transporting petroleum products from Lomé to Lagos.
The refinery challenged marketers who claim to be committed to serving Nigeria’s domestic market to establish direct partnerships with Dangote rather than pursuing complex international trading arrangements. The company highlighted that its local partners already benefit from various incentives, including volume-based discounts, credit facilities, and comprehensive logistics support designed to enhance product availability at mutually agreed rates.
Dangote clarified that price variations may occur depending on the specific lifting arrangements, particularly whether marketers collect products from the Single Point Mooring facility or directly from the refinery’s gantry system. However, the company maintained that these operational differences do not support DAPPMAN’s broader allegations about discriminatory pricing.
The refinery issued a pointed critique of certain operators in the petroleum sector, suggesting that some businesses have never been genuinely focused on serving Nigerian consumers. Instead, Dangote alleged that these operators are primarily motivated by arbitrage opportunities that allow them to divert products to more lucrative regional markets, potentially tripling their value in the process.
This dispute highlights ongoing tensions between Nigeria’s domestic refining capacity and established petroleum marketing networks that have historically relied on imports. The disagreement also raises questions about pricing transparency and market dynamics as Nigeria transitions toward greater reliance on domestic refining capacity following the commissioning of the Dangote refinery.
The controversy comes at a time when Nigeria is working to reduce its dependence on imported petroleum products while ensuring adequate supply and competitive pricing for domestic consumers. Both sides in this dispute claim to represent the best interests of Nigerian consumers, though their proposed solutions differ significantly.
