Fuel Exports On The Horizon: Dangote Refinery Targets South Africa, Ghana, And More Despite Local Hikes

Dangote Refinery is preparing to begin fuel exports to countries including South Africa, Angola, Namibia, and Ghana. According to sources, the 650,000-barrel-per-day refinery is in advanced negotiations with these nations for fuel supply agreements. Reports indicate that talks are also underway with additional African...CONTINUE READING…

countries such as Niger, Chad, Burkina Faso, and the Central African Republic, with expectations for more countries to show interest in securing fuel supplies from the $20 billion refinery.

Ghana has expressed its intent to purchase petrol, with Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, highlighting that the deal with Dangote would help eliminate the country’s reliance on $400 million in monthly fuel imports from Europe.

“The negotiations are progressing well with Ghana, Angola, Namibia, and South Africa, and initial discussions have started with Niger, Chad, Burkina Faso, and the Central African Republic,” a source revealed.

While the Dangote Refinery has the capacity to meet Nigeria’s national fuel demand, local marketers remain reluctant to purchase from the facility, citing unspecified reasons. However, it is expected that their stance will become clearer by January 2025. Meanwhile, these marketers continue to import fuel from abroad.

Local fuel marketers, including the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have criticized Dangote for allegedly charging higher prices for locally sold fuel. They are seeking approval from the Central Bank of Nigeria (CBN) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to import cheaper petrol.

These marketers believe that such imports would help ease the burden on consumers facing rising fuel prices after the removal of fuel subsidies. However, they are also calling for access to foreign exchange and permits to ensure compliance with regulatory standards.

An NMDPRA official explained that import licenses must be applied for individually by oil marketers, not as associations. Despite the ongoing import efforts, PETROAN’s spokesperson, Dr. Joseph Obele, accused Dangote of trying to monopolize the market and pledged to break these monopolies once import authorizations are granted.

Ongoing negotiations signal significant shifts in the Nigerian fuel market, with potential regional impacts as Dangote’s refinery moves to export fuel to neighboring African nations.