Dangote Group Refutes DAPPMAN’s Claims Over Petrol Pricing Disparities
Dangote Group Refutes DAPPMAN’s Claims Over Petrol Pricing Disparities
By Joseph Iyaji | Akahi News
The Dangote Group has strongly denied allegations by the Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) that its refinery sells petrol to international traders at lower rates than to Nigerian marketers. The claims, made by DAPPMAN’s Executive Secretary, Olufemi Adewole, have ignited a heated debate within Nigeria’s downstream oil sector, as stakeholders grapple with fuel pricing, supply chain practices, and domestic energy security.
DAPPMAN’s Allegations: Pricing Discrimination or Supply Chain Reality?
In an interview that sparked the controversy, Adewole alleged that members of DAPPMAN were compelled to purchase Dangote’s petrol from international traders in Lomé, Togo, at prices N65 lower than what the Dangote refinery sells directly in Nigeria. He argued that, on some occasions, it was more cost-effective for marketers to import the product from abroad than to buy directly from the refinery’s facilities in Nigeria.
“Dangote sells to international traders at N65 cheaper than what he is selling to us. In some instances, we were able to buy from those people and still bring it to Nigeria,” Adewole claimed, suggesting a structural pricing disadvantage for local marketers.
According to him, the situation raised concerns about fairness, pricing transparency, and the economic feasibility of domestic fuel distribution.
Dangote’s Rebuttal: “Claims Are Misleading and Inaccurate”
Responding on Monday, the Dangote Group dismissed the allegations as “misleading and inaccurate,” questioning the basis of DAPPMAN’s claims. The company pointed out a striking contradiction:
“It is incorrect to claim that the price of petrol in Togo is lower than in Nigeria. A straightforward check reveals that the average pump price in Lomé stands at approximately 680 CFA francs per litre, equivalent to N1,826. This figure reflects the very scenario that DAPPMAN and its affiliates appear to advocate for in Nigeria,” the company stated.
The group insisted that its refinery had positioned Nigeria as the most affordable fuel hub in West Africa, noting that more than 60 per cent of the crude oil it processes is imported yet the refinery still maintains competitive pricing within the region.
Allegations of Round-Tripping and Arbitrage
Perhaps the most contentious part of Dangote’s response was its accusation that some marketers engage in round-tripping practices—buying petrol produced in Nigeria, routing it through Togo, and then re-importing it into Nigeria at inflated prices to exploit price differentials.
“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, costs that run into billions of naira?” the company queried.
The refinery questioned why marketers would not instead partner directly with it to strengthen the Nigerian domestic fuel supply chain, given the volume-based discounts, credit facilities, and logistical support available to local partners.
“If their true intention is to serve the Nigerian domestic market, why not join the growing list of local partners of the Dangote refinery? These partners, in addition to receiving high-quality products, benefit from incentives designed to enhance local availability at a recommended rate agreed by all parties,” the group stressed.
Pricing Structures and Market Incentives
Dangote also clarified that price variations exist depending on the point of purchase—whether at the Single Point Mooring (SPM) facilities or directly at the gantry.
While smuggling through the SPM is relatively easier due to maritime access, land-border transportation poses higher costs and risks, the company explained.
The group maintained that for some operators, Nigeria’s downstream fuel market had become less about meeting local demand and more about pursuing arbitrage opportunities in neighbouring countries where pump prices are significantly higher.
“The reality is that for some operators, the business has never truly been about delivering petroleum products to Nigerian consumers. Instead, it revolves around arbitrage opportunities, where they can easily triple the value of products by diverting them to more lucrative markets in the sub-region,” Dangote noted.
Industry Implications and the Road Ahead
The clash between DAPPMAN and the Dangote Group highlights deepening tensions in Nigeria’s downstream oil sector, where marketers have often accused refiners and regulators of policies that undermine local businesses.
Industry experts warn that resolving the dispute will be critical to ensuring fuel price stability, preventing product shortages, and protecting Nigerian consumers from exploitative market practices.
Moreover, the controversy comes at a time when Nigeria is grappling with broader energy challenges, including currency volatility, subsidy removal aftershocks, and fluctuating international oil prices.
As the debate continues, both government regulators and private operators face growing pressure to establish transparent pricing mechanisms, efficient distribution networks, and collaborative frameworks to prevent future disputes that could disrupt fuel supply in Africa’s largest economy.
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