It’s Costlier to Load Refined Products from Our Plant Than Lomé – Dangote 

Despite the anticipation surrounding Nigeria’s journey to energy self-sufficiency, Aliko Dangote has voiced deep concerns that threaten to slow this progress. 

Speaking at the Global Commodity Insights Conference in Abuja, the Dangote Group President revealed that it currently costs more for oil marketers to load refined petroleum products from his $20 billion refinery in Lekki than from offshore depots in neighbouring countries like Togo.

Dangote blamed excessive port charges and regulatory red tape as key factors inflating the cost of lifting fuel from the Lagos-based refinery. “Marketers pay charges both when loading and discharging in Nigeria,” he said. 

“But if they go to Lomé, they only pay at discharge. That kind of system puts us at a disadvantage.”

This pricing imbalance, he warned, undermines local refining and inadvertently encourages the continued importation of petroleum products, some of which are of questionable quality. 

According to Dangote, this is not just an economic issue but also a public health and environmental concern. “Africa continues to be a dumping ground for low-grade, toxic fuel blends that would be illegal in Europe or North America,” he said.

It is a structure that works against domestic supply

The concern is not just about cost, it’s about long-term viability. Dangote argued that the current loading structure discourages domestic sourcing and weakens the very foundation of Nigeria’s push to reduce dependence on fuel imports.

Further investigations indicate that this double-charging model mainly affects marketers who distribute via coastal shipping routes. 

The Independent Petroleum Marketers Association of Nigeria (IPMAN) offered a slightly different view, stating that the cost discrepancy may not apply to all local buyers. 

According to IPMAN’s National Publicity Secretary, Chinedu Ukadike, marketers who load directly from the refinery’s gantry are spared most of the additional fees.

“We don’t lift products from Lomé,” Ukadike clarified. “For local distribution, it’s easier and more cost-effective to load from Dangote’s facility, especially through land-based supply. The higher costs apply mostly to coastal distribution involving international clearances.”

Discontent grows among marketers

But logistical costs are not the only issue. Some petroleum marketers are beginning to question whether Dangote’s refinery model is too closed off to foster healthy competition in the downstream sector. 

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) accused the refinery of using restrictive pricing structures and sales policies that limit access to refined products.

Olufemi Adewole, Executive Secretary of DAPPMAN, claimed that many independent marketers who registered for supply still cannot access products. “You don’t even get a price until after your documents are cleared,” he said. 

“There seems to be a preference for certain buyers, which makes it difficult for others to plan or compete.”

Similarly, Clement Isong of the Major Energy Marketers Association of Nigeria warned against allowing any single player to dominate the market. While acknowledging Dangote’s massive investment, he stressed that regulators must act to prevent monopolistic tendencies. “A functioning market depends on balance.

 When only one company holds the reins, it stops being a market, it becomes a monopoly,” he noted.

What you should know

The refinery that was meant to reduce Nigeria’s reliance on imports may be inadvertently encouraging them due to poor regulatory alignment and lack of market transparency. 

As marketers continue to weigh their options between cost, convenience, and access, Nigeria’s broader ambition of becoming a self-sufficient fuel economy hangs in the balance.

For Dangote, the solution lies in reform. “We need a system that supports domestic players,” he said. “Otherwise, the refinery becomes a giant with its hands tied—built to serve Africa, but outpriced by neighbouring depots.”

Whether the government and regulatory agencies will respond with the urgency this moment demands remains to be seen. What’s clear is that until these issues are resolved, the road to energy independence may be longer and more expensive than anyone expected.