President of Dangote Group, Aliko Dangote, has expressed concern over rising port-related charges and regulatory inefficiencies that he says are eroding the competitiveness of Nigeria’s domestic fuel supply chain and compromising the Federal Government’s foreign exchange management strategy.
Speaking at a refined fuel market conference in Abuja, Dangote said the cost of loading refined products from the Dangote Refinery in Lekki is more expensive for oil marketers compared to sourcing from offshore storage facilities in neighbouring countries.
He specifically cited the Lomé Floating Storage Terminal in Togo as a cheaper alternative despite Nigeria’s refinery being fully operational.
“Our domestic customers are now burdened with charges both at the point of loading and discharge within the country, whereas when products are sourced from neighbouring offshore terminals, they pay only discharge-related costs,” Dangote stated.
The $20 billion refinery, designed to meet domestic demand and reduce import dependence, is facing headwinds as Nigerian marketers continue to import fuels that are often substandard and cheaper due to fewer regulatory hurdles abroad.
According to Dangote, 69% of refined petroleum products consumed in Nigeria are still imported, undermining national energy security goals and exposing consumers to health and environmental risks from low-grade imports.
He emphasized that the dual-charge system not only distorts market pricing but also discourages local uptake, effectively rewarding importation at the expense of local production.
The issue has drawn broader industry attention. At the same event, key stakeholders in the downstream sector criticized what they described as restrictive commercial practices and lack of transparency in the refinery’s pricing model.
Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and Major Energy Marketers Association of Nigeria (MEMAN) both raised concerns over access restrictions and pricing opacity.
Executives from both associations called on regulatory authorities to review domestic port policies and safeguard open-market principles.
Olufemi Adewole, Executive Secretary of DAPPMAN, stated that many independent marketers face hurdles in accessing products from the refinery, citing a lack of clear pricing frameworks and preference for select off-takers.
Similarly, Clement Isong, Executive Secretary of MEMAN, noted that while the scale of Dangote’s investment is commendable, unchecked market dominance could lead to monopolistic outcomes if regulatory oversight is not strengthened.
Market analysts argue that the additional costs, combined with supply restrictions, are disincentivizing domestic offtake at a time when Nigeria should be prioritizing local refining to reduce pressure on foreign exchange reserves.
“The structural inefficiencies in the distribution network—particularly port handling and regulatory levies—must be addressed urgently if Nigeria is to realise the full economic value of domestic refining,” said a downstream sector analyst based in Lagos.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is yet to issue a formal response, but officials within the industry say a review of port policies and terminal charges is already under consideration.
With the Dangote Refinery positioned to serve as a cornerstone of Nigeria’s energy transition strategy, the ongoing bottlenecks present a challenge to broader macroeconomic targets, including exchange rate stability, import substitution, and industrial development.
If unresolved, stakeholders warn that continued reliance on offshore imports will limit the refinery’s potential and slow down national efforts to achieve fuel self-sufficiency.
