Seven African Countries Line Up for Dangote Refinery’s Fuel Exports

The Dangote Refinery and Petrochemical Complex is gearing up to begin fuel exports to several African nations, including South Africa, Angola, and Namibia. With a production capacity of 650,000 barrels per day, the refinery has reportedly reached advanced stages of negotiations to start fuel supply to these countries.

Additionally, Niger, Chad, Burkina Faso, and the Central African Republic have also initiated talks with the $20 billion refinery based in Lekki, Nigeria. Recently, Ghana joined the list, expressing interest in sourcing fuel from the refinery to reduce its monthly $400 million fuel imports from Europe. Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, confirmed that negotiations are progressing with Ghana, Angola, Namibia, and South Africa.

When asked about some marketers’ reluctance to buy from the Dangote refinery despite its capacity, a source within the company suggested these dealers may have hidden motives. The source added that the refinery remains a crucial asset for ensuring stable fuel supplies in Nigeria and can support the country’s entire fuel demand.

Amidst these developments, local Nigerian marketers have opted to import fuel independently, alleging that the Dangote refinery’s prices are too high. Both the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) recently advocated for permission to import cheaper fuel to provide price relief for Nigerian consumers facing rising fuel costs after subsidy removal. They are awaiting necessary approvals from the Central Bank of Nigeria (CBN) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

In response, NMDPRA officials clarified that fuel import licenses can only be issued to individual marketers, not to associations. The spokesperson, who requested anonymity, explained that while IPMAN and PETROAN applied for a collective license, regulatory standards require individual applications.

Dr. Joseph Obele, PETROAN’s National Public Relations Officer, contended that the Dangote refinery aims to monopolize the market, pushing competitors out. He emphasized the association’s commitment to offering Nigerians more affordable, high-quality fuel, and appealed to the public to support efforts to end monopolistic practices in the sector.