Dangote Refinery is preparing to begin exporting fuel to several countries across Africa. Countries including South Africa, Angola, and Namibia are among the first set to import fuel from the state-of-the-art refinery, which has a production capacity of 650,000 barrels per day. Talks with these countries are reportedly in advanced stages, according to a reliable source close to the matter.
In addition to these southern African nations, several other countries—namely Niger, Chad, Burkina Faso, and the Central African Republic—have started preliminary discussions with the refinery. Interest in Dangote Refinery’s output is growing rapidly, with additional countries expected to express interest in the near future.
Ghana, for instance, recently indicated plans to purchase fuel from the refinery, which could reduce the country’s dependency on European imports. Ghana’s National Petroleum Authority Chairman, Mustapha Abdul-Hamid, noted that this deal could end Ghana’s $400 million monthly fuel imports from Europe.
Despite this demand, some local fuel marketers in Nigeria have been critical of Dangote Refinery’s pricing strategy. The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have opted to continue importing fuel independently. They argue that bringing in less expensive fuel could benefit Nigerian consumers struggling with rising prices following the removal of the fuel subsidy.
IPMAN and PETROAN have sought approvals from the Central Bank of Nigeria (CBN) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to facilitate imports. However, the NMDPRA clarified that only individual marketers can apply for import licenses rather than associations.
“The truth of the matter is that they can’t apply for petrol import licence as a body or association. Individual marketers have to apply by themselves before they can be granted that licence. They have to apply by themselves. We are not going to give the permit jointly so they can’t apply as an association.
“So, this also means that if individual marketers don’t apply for it, we can’t approve it.”
Meanwhile, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, voiced concerns over Dangote Refinery’s market position, describing it as “aggressive” and warning that it could lead to a monopoly.
“You should know that Dangote is just out to close all the doors and windows so that no person enters the market. He is determined to ensure that nobody enters the market as a competitor. We assure Nigerians that as soon as the regulatory agency approves our authority to import, this price of PMS that is causing pain to Nigerians right now will crash to the barest minimum.
“The product we are planning to import is one of the best products so far, far better than his (Dangote) own, but he is just telling Nigerians that any product that is coming into the country is not better than his own.
“We call on Nigerians to support the call for dismantling monopolies so that we can liberate the market; otherwise, we will remain in the trap we are. We are trapped at the moment; we are trapped with exploitation and the only way out of the trap is to dismantle every dimension of monopoly and we are calling on Nigerians to support us,” Obele said.
