Despite Rising Fuel Prices In Nigeria, Dangote Refinery Targets African Markets For Fuel Exports

Despite Rising Fuel Prices In Nigeria, Dangote Refinery Targets African Markets For Fuel Exports

The Dangote Refinery is set to begin fuel exports to countries including South Africa, Angola, and Namibia. According to a source who spoke with The PUNCH, the 650,000-barrel-per-day capacity refinery is in advanced negotiations with these…CONTINUE READING…

nations for fuel supply agreements.

Reports also suggest that four additional African countries—Niger Republic, Chad, Burkina Faso, and the Central African Republic—are in talks with the refinery. Further expansion is expected, with more countries likely to express interest in securing fuel supplies from the $20 billion Lekki-based refinery in the coming months.

Ghana has already shown interest in purchasing fuel, with Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, stating that the deal with Dangote would eliminate the country’s $400 million monthly fuel imports from Europe.

“I can confirm that discussions are progressing with Ghana, Angola, Namibia, and South Africa, while initial talks have started with Niger, Chad, Burkina Faso, and the Central African Republic,” the source revealed.

Despite Dangote Refinery’s production capacity, local marketers have been reluctant to purchase fuel from the facility. The source hinted at undisclosed reasons behind the marketers’ hesitation, suggesting that their intentions would become clearer by January 2025. “Dangote refinery is Nigeria’s best hope for a steady fuel supply and has the capacity to meet national demand,” the source added.

Meanwhile, local fuel marketers have decided to continue importing fuel from abroad. The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have reiterated their stance, accusing Dangote of charging high prices for locally sold fuel.

The marketers are currently awaiting approvals from the Central Bank of Nigeria (CBN) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to import cheaper fuel. They argue that these imports would help relieve consumers facing rising fuel prices following the removal of subsidies.

Additionally, the marketers are requesting access to foreign exchange from the CBN and permits from the NMDPRA to ensure compliance with fuel quality and regulatory standards. An NMDPRA official explained that applications for import licenses must be made individually by oil marketers, not as an association.

Dr. Joseph Obele, PETROAN’s National Public Relations Officer, confirmed that the association had applied for an import license through its new trading division. He criticized Dangote for attempting to monopolize the market, urging Nigerians to support efforts to break the monopoly. Obele also claimed that the quality of the fuel they plan to import would surpass that of Dangote’s.