Dangote decries port charges on local products, as Africa imports $90b worth of petrol every year
By Jeph Ajobaju, Chief Copy Editor
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“In terms of port charges, it is currently more expensive to load a domestic cargo of petroleum products from the Dangote Refinery, as customers pay both at the point of loading and at the point of discharge.
“But when they load from Lome, which competes with us, they pay only at the point of discharge. This is simply unfair and unsustainable” – Dangote.
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Port levies make it more expensive for marketers to lift fuel products from Dangote Refinery in Lagos than from offshore storage depots in neighbouring countries like Togo, Aliko Dangote has lamented.
Dangote, President and Chief Executive Officer of the Dangote Group, said marketers are grappling with multiple charges at both points of loading and discharge when sourcing products from his $20 billion refinery, a cost removed from fuels imported from the Lomé Floating Storage Terminal operated by international operators and some indigenous collaborators.
In his view, this bottleneck facilitates the total 69 per cent yearly fuel import to Africa, making it a destination for cheap, often toxic petroleum products blended to substandard levels not be permitted in Europe or North America.
Imports of refined petroleum products cost Africa $90 billion yearly, he disclosed.
Dangote presented the figures at the Global Commodity Insights Conference on West Africa’s refined fuel market, jointly organised by the NMDPRA and S&P Global Commodity Insights in Abuja.
“In terms of port charges, it is currently more expensive to load a domestic cargo of petroleum products from the Dangote Refinery, as customers pay both at the point of loading and at the point of discharge.
“But when they load from Lome, which competes with us, they pay only at the point of discharge. This is simply unfair and unsustainable,” he lamented.
He said such a structure incentivises fuel importation over local refining, defeating the purpose of self-sufficiency and government’s plan to curb foreign exchange (forex) pressure.
The extra charge is borne by marketers who buy products from the refinery and pass the cost to consumers.
Dangote also disclosed that his refinery imports between 9 and 10 million barrels of crude from the United States and other countries monthly, even though he commended the Nigerian National Petroleum Company Limited (NNPC) for making local crude available to the refinery since it began operation.
He decried the heavy reliance on imports of refined petroleum products to Africa.
Due to Africa’s limited domestic refining capacity, he stressed, the continent imports over 120 million tonnes of refined petroleum products annually at a cost of $90 billion.
He lamented dependence on fuel imports in Africa, saying the continent is a dumping ground for cheap and substandard petroleum products.
“As we speak today, we buy 9–10 million barrels of crude monthly from the U.S. and other countries. I must thank NNPC for making some cargoes of Nigerian crude available to us from the start of production to date.”
Dangote Refinery, with a 650,000-barrel-per-day capacity, began the rollout of petroleum products in September 2024.
On the other hand, however, Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has accused Dangote Refinery of deploying restrictive sales strategies and pricing models that hinder open market access and fuel competition in the downstream sector.
DAPPMAN Executive Secretary Olufemi Adewole disclosed at a panel session at the West African Refined Products Pricing and Markets Development Conference in Abuja that the refinery’s business model does not favour most local marketers, especially independent players who rely on flexible coastal supply logistics.
“Since the advent of Dangote Refinery, it has not been smooth sailing at all. We had preliminary meetings with their management. We received promises and assurances that we would be accommodated,” he said.
“We are ready and still willing to patronise Dangote. But the issue is, is Dangote ready to give us the product we want?”
He lamented that despite registering for supply, many marketers are not able to access refined products due to a “restrictive sales method” employed by the refinery.
“You don’t get the price upfront. It is only after you’ve been cleared that a proforma invoice is issued. Meanwhile, there appears to be a select group Dangote prefers to trade with.”
Clement Isong, Executive Secretary of the Major Energy Marketers Association of Nigeria (MEMAN) sought regulatory balance to prevent the emergence of a monopoly.
“It is true that an investor who has poured billions into a project should enjoy the benefits of scale and innovation. However, the regulator must step in when one player begins to dominate,” Isong warned.
“When you get to a point where only one player is left in the market, that is no longer a market; that is a monopoly.”
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