The Dangote Group has firmly denied recent allegations by the Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) that the refinery sells petrol at lower prices to international traders compared to Nigerian buyers.
DAPPMAN’s Executive Secretary, Olufemi Adewole, had claimed in an interview that some members purchased Dangote petrol from international traders in Lomé, Togo, at prices cheaper than those offered locally by the refinery. Adewole further asserted that the refinery’s domestic prices were often higher, making importation a more attractive option.
“Dangote sells to international traders at N65 less than what it charges us. On several occasions, we bought from those traders and imported the product back into Nigeria,” Adewole stated.
However, the Dangote Group, in a statement released Monday, described these allegations as misleading and inaccurate. The company challenged DAPPMAN’s claims by pointing out the stark difference in pump prices between Nigeria and Togo.
“It is incorrect to say petrol is cheaper in Togo than in Nigeria. A quick check shows the average price per litre at the pump in Lomé is about 680 CFA francs, which converts to approximately N1,826,” the statement read. “This price is more than double the current pump price in Nigeria, which stands at N865 per litre.”
The statement also emphasized that the Dangote refinery has positioned Nigeria as a key supplier of affordable petrol feedstock to West Africa, despite importing over 60 percent of the crude oil it processes.
Accusing DAPPMAN and some of its members of focusing on importing refined products produced domestically and engaging in “round-tripping,” the Dangote Group questioned the business logic behind this practice.
“It appears some operators import petrol refined by Dangote back into Nigeria from Togo at a markup, incurring billions of Naira in transportation costs. If their genuine intent is to supply the Nigerian market, why not partner with Dangote and benefit from volume discounts, credit facilities, and logistics support offered to local distributors?”
The refinery further clarified the pricing differences between the Single Point Mooring (SPM) system and gantry loading. While the SPM route makes smuggling easier, land border transport involves higher risks and complexities.
Dangote concluded by accusing some importers of prioritizing arbitrage opportunities, diverting petrol to more profitable markets outside Nigeria, rather than genuinely serving Nigerian consumers.
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