Dangote Refinery vs. Marketers: The Pricing War, Monopoly Fears & Downstream Tensions.
By IDNN Business & Energy Desk
Africa’s largest oil refinery is facing scrutiny from Nigeria’s downstream petroleum stakeholders as a wave of complaints emerges over pricing opacity, port logistics, and market access.
According to Dangote Group President Aliko Dangote, domestic fuel marketers are being forced to pay more to lift refined products from his $20 billion refinery in Lekki than they would from offshore depots in Togo, especially Lomé’s Floating Storage Terminal.
“In terms of port charges, it is currently more expensive to load a domestic cargo from Dangote Refinery than it is to load from Lomé,” Dangote said during the recent Global Commodity Insights Conference in Abuja.
“Customers pay both at the point of loading and at discharge here in Nigeria. But in Lomé, they only pay once. That’s simply unfair and unsustainable.”
STRUCTURAL BOTTLENECKS & DOMESTIC DISADVANTAGE
The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) have both flagged the cost burden placed on local players.
DAPPMAN Executive Secretary Olufemi Adewole described the refinery’s sales model as “restrictive,” claiming that many independent marketers are being shut out of supply deals.
“You don’t even get a price upfront,” Adewole said. “You’re only issued a pro forma invoice after clearance. Meanwhile, it appears there’s a preferred group Dangote trades with.”
DAPPMAN’s fears were echoed by Clement Isong of the Major Energy Marketers Association of Nigeria (MEMAN), who warned that lack of open access and transparency could lead to market domination.
“When only one player controls pricing, logistics, and volume, we are no longer talking about a market — we’re talking about a monopoly,” Isong said.
COASTAL ROUTE DEBATE — LOMÉ VS LEKKI
IPMAN Publicity Secretary Chinedu Ukadike offered some clarification, noting that local buyers who lift from the refinery gantry may be shielded from some of the higher costs.
“We don’t load from Lomé. For local distribution, Nigeria’s internal routes are cheaper. But marketers going coastal from other countries are absorbing clearance charges and that skews pricing.”
Despite this nuance, industry insiders argue the playing field remains uneven and opaque — especially given that most small-scale marketers lack the financial muscle to navigate inconsistent supply windows and pricing ambiguity.
DOLLAR PRESSURE & FX IMPLICATIONS
Experts warn that if local refining remains financially disadvantageous, Nigeria could regress into dependency on imported fuel — precisely the problem the refinery was meant to solve.
“This defeats the entire objective of fuel self-sufficiency,” said petroleum analyst Olatide Jeremiah. “The economic logic must favour Nigerian offtakers — or else we’re right back where we started.”
With nearly 69% of refined products still imported, many now see a critical moment for regulatory intervention to ensure price parity and market openness.
⚖️ CALLS FOR BALANCE & REGULATORY OVERSIGHT
Industry observers say the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) must urgently mediate between Dangote and market operators to prevent an unhealthy concentration of supply and pricing power.
“This isn’t about punishing Dangote,” said energy analyst Hafsat Musa. “It’s about ensuring a fair, competitive space — especially in a sector that affects every Nigerian daily.”
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