By John Umeh
Tensions are rising once more between Africa’s largest refinery—owned by billionaire Aliko Dangote—and petroleum marketers, as fears mount over a potential government move to restrict or ban fuel imports into Nigeria. The growing anxiety comes on the heels of reports that the federal government may soon adopt protectionist measures aimed at boosting local refining capacity, especially with the Dangote Refinery finally producing diesel and aviation fuel.
The Dangote Refinery, located in the Lekki Free Trade Zone of Lagos and with a refining capacity of 650,000 barrels per day, is seen as a transformative project for Nigeria’s downstream sector. After years of delays and anticipation, the facility recently commenced partial operations, with diesel and aviation fuel already entering the domestic market.
However, this major milestone has not eased tensions in the sector. On the contrary, it has reignited longstanding frictions between Dangote and independent petroleum marketers who fear that the government may soon impose restrictions on fuel imports, effectively forcing them to rely on Dangote’s products alone—at prices he alone may dictate.
Marketers Voice Concerns
The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) have both expressed deep concerns about the lack of clarity from the federal government regarding fuel import policy. They argue that any premature import ban would harm market competition, stifle supply diversity, and potentially lead to price manipulation.
“We support local refining and welcome Dangote’s progress, but monopolizing supply through an import ban is dangerous,” said a senior official at DAPPMAN who spoke on condition of anonymity. “The market must remain open. Consumers deserve competitive pricing and consistent supply, which can’t rest on the shoulders of one operator alone.”
The marketers are also worried about product pricing and payment terms. While Dangote has indicated willingness to sell at competitive rates, industry insiders claim his pricing model may still be significantly higher than imported alternatives, particularly for petrol, which the refinery is expected to begin producing later in the year.
Dangote Group Responds
In response, the Dangote Group has dismissed fears of a monopoly, insisting that its refinery is open to collaboration with marketers and that its pricing structure reflects real-time global market dynamics and quality standards. A spokesperson for the company stated, “Dangote Refinery is not in competition with anyone but aims to address the long-standing fuel scarcity and import dependency problem in Nigeria. Our goal is energy security, not market domination.”
The group also emphasized the foreign exchange savings and job creation benefits of domestic refining, noting that continued reliance on imported petroleum products undermines national development.
Government’s Position Unclear
As of now, the federal government has not made any official statement confirming an impending fuel import ban. However, top officials at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have hinted at a possible shift in policy toward prioritizing locally refined products, in line with the broader objectives of the Petroleum Industry Act (PIA).
This lack of policy certainty is further complicating matters for marketers who rely on clear regulatory guidelines for import contracts, shipping schedules, and storage planning. Analysts argue that any sudden policy shift—without a gradual transition plan—could cause market disruptions and potential supply shortages.
The Bigger Picture
The renewed dispute highlights the delicate balance the Nigerian government must strike between promoting local production and ensuring a competitive, fair market. While the Dangote Refinery represents a significant stride toward energy independence, stakeholders warn that transparency, fair competition, and open access to supply remain essential to avoid trading one dependency for another.
As Nigerians continue to grapple with fluctuating pump prices and fuel supply challenges, all eyes remain on Abuja. A clear and inclusive policy direction—ensuring that both local refiners and independent marketers have a role to play—could be the key to long-term sector stability.
