The Dangote Group has accused some petroleum marketers of engaging in round-tripping practices, diverting petrol produced in Nigeria through neighbouring Togo before re-importing it at inflated prices.
In a statement issued on Monday, the company dismissed allegations by the Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) that its refinery was offering cheaper petrol to foreign traders compared to local marketers.
DAPPMAN’s Executive Secretary, Olufemi Adewole, had claimed that Nigerian marketers were forced to buy Dangote’s petrol at higher rates than those offered to international traders, citing a N65 per litre difference in some cases.
Dangote, however, described the claims as misleading and said the realities of regional pricing disproved the allegations. According to the group, pump prices in Lomé, Togo, average about 680 CFA francs per litre (N1,826), more than double Nigeria’s pump price of N865 per litre.
The refinery alleged that some operators exploit arbitrage by routing petrol through Togo, taking advantage of higher market prices in West Africa.
“It is increasingly evident that DAPPMAN and some of its members are disproportionately focused on the importation of refined products, even admitting to round-tripping. What, then, is the business rationale behind this practice, especially when considering the substantial additional cost of transporting petroleum products from Lomé to Lagos?” the company queried.
Dangote insisted that the true objective of such marketers is not to serve Nigerian consumers but to chase profits in regional markets where refined products can fetch two to three times more value.
The company argued that local partners of the refinery already benefit from incentives including volume-based discounts, credit facilities, and logistics support, all designed to enhance availability and affordability of petroleum products within Nigeria.
“If their true intention is to serve the Nigerian domestic market, why not join the growing list of local partners of the Dangote refinery?” the group asked.
The dispute underscores ongoing tensions between the country’s largest private refinery and petroleum marketers at a time when the government is seeking to stabilise fuel prices and ensure consistent supply.
While DAPPMAN maintains that local marketers are disadvantaged, Dangote insists that its refinery has positioned Nigeria as the most affordable petrol hub in West Africa, despite importing more than 60 percent of the crude oil it processes.
Analysts say resolving these differences will be crucial to ensuring consumer protection and energy security in Africa’s largest oil-producing nation.
