…says in terms of port charges, it is currently more expensive to load a domestic cargo of petroleum products from the Dangote Refinery.
ABUJA, NIGERIA – The iNews Times reports that the president of the Dangote Group, Aliko Dangote, has raised fresh concerns over rising regulatory and logistical hurdles that he says are undermining the competitiveness of Nigeria’s downstream petroleum sector and discouraging local refining.
Speaking at the Global Commodity Insights Conference on West Africa’s Refined Fuel Market in Abuja, jointly organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global, Dangote revealed that port-related charges have made it more expensive for marketers to lift products from the $20 billion Dangote Refinery in Lekki than from offshore terminals in neighbouring countries like Togo.
“In terms of port charges, it is currently more expensive to load a domestic cargo of petroleum products from the Dangote Refinery, as customers pay both at the point of loading and at the point of discharge. But when they load from Lomé, which competes with us, they pay only at the point of discharge. This is simply unfair and unsustainable,” Dangote said.
He warned that such cost structures discourage domestic sourcing and promote the continued importation of substandard petroleum products into Africa, with nearly 70 percent of refined fuel still coming from overseas. Many of these imports, Dangote added, would not meet safety or environmental standards in Europe or North America.
Investigations by The Press revealed that the extra charges are being passed on to marketers purchasing directly from the Lekki-based refinery.
However, the Independent Petroleum Marketers Association of Nigeria (IPMAN) offered a nuanced view.
In a telephone interview, IPMAN’s National Publicity Secretary, Chinedu Ukadike, said local marketers who source directly from Dangote’s loading gantries are not affected by the same regulatory costs as those using international coastal routes.
“We don’t load in Lomé,” Ukadike explained. “For Nigerian distribution through the coastal route, using vessels within the country avoids many of the international and local clearance charges. It’s actually easier to load from Dangote if you’re operating domestically.”
But beyond cost issues, the Dangote Refinery is also facing criticism from petroleum marketers over its business practices.
At the same conference, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) accused the refinery of deploying restrictive sales models that exclude independent players and reduce competition in the downstream market.
“Since the advent of Dangote Refinery, it has not been smooth sailing,” said DAPPMAN Executive Secretary, Olufemi Adewole. “We’ve had meetings and received assurances from their management, but the reality is different. Many marketers have registered with them but are still unable to access products due to a restrictive sales method.”
According to Adewole, buyers are not informed of prices until after they’ve been cleared and issued a proforma invoice, a process he claims favors a select group of traders.
Similarly, Clement Isong, Executive Secretary of the Major Energy Marketers Association of Nigeria (MEMAN), warned that unchecked market dominance by a single refinery could erode competition in the sector.
“It’s true that an investor who has poured billions into a project should enjoy the benefits of scale,” Isong said. “But when one player begins to dominate the market, regulators must step in. Once you reach a point where only one player is left, that’s no longer a market—that’s a monopoly.”
As Nigeria pushes for energy self-sufficiency, the Dangote Refinery—Africa’s largest—was seen as a game changer. However, ongoing disputes over pricing transparency, port charges, and access may yet slow the refinery’s anticipated impact on fuel supply and pricing across the continent.
