Dangote: Lifting fuel drom our refinery costlier than Lomé due to charges.

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Dangote: Lifting Fuel from Our Refinery Costlier Than Lomé Due to Charges


Aliko Dangote, President of Dangote Group, has voiced frustration over the high logistics and regulatory costs making it more expensive for marketers to lift refined petroleum products from the Dangote Refinery in Lekki than from offshore facilities in neighbouring countries like Togo.

Speaking at the Global Commodity Insights Conference in Abuja, co-hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global, Dangote revealed that multiple port and regulatory fees imposed on marketers at both loading and offloading points have eroded the cost advantage of his $20 billion refinery. In contrast, offshore terminals such as the Lomé Floating Storage Terminal do not impose such burdens.

He noted that these inefficiencies contribute to Africa’s heavy dependence—69%—on imported refined fuels, many of which are substandard and laced with toxic blends that would be banned in Europe or North America.

Further investigation by reporters showed that these added charges fall on the shoulders of marketers sourcing products from Dangote’s plant.

However, Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), clarified that these costs largely affect those using coastal import routes, not local marketers who load directly from the refinery’s gantry. He explained that interstate distribution within Nigeria avoids many international and regulatory charges, making domestic loading more cost-effective.

Energy analyst and CEO of Petroleumprice, Olatide Jeremiah, also pointed out that the lower octane quality of imported petrol may contribute to cheaper landing costs, making imports attractive despite lower standards.

Meanwhile, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has accused Dangote Refinery of restrictive pricing and sales policies that limit access and stifle competition in the downstream sector. During a panel session at the same Abuja conference, DAPPMAN’s Executive Secretary, Olufemi Adewole, said many marketers are being excluded due to opaque pricing and limited access to supply.

Adewole noted that although initial discussions with Dangote’s team seemed promising, marketers often don’t receive pricing details upfront. Instead, pricing is only disclosed after product clearance and invoice issuance, creating uncertainty. He added that it appears Dangote prefers to transact with select buyers.

Clement Isong, Executive Secretary of the Major Energy Marketers Association of Nigeria (MEMAN), echoed concerns and called for regulatory measures to prevent market monopoly by the Dangote refinery.

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