Dangote Refinery may cut petrol supplies to import-dependent marketers over quality

Dangote Petroleum Refinery and Petrochemicals may restrict petrol supplies to major marketers that continue to import Premium Motor Spirit (PMS) into Nigeria, amid concerns over product quality and market transparency.

According to a source familiar with the refinery’s position, the proposed measure could take effect as early as this week, subject to further consultations and any last-minute intervention.

The development reflects growing concerns over the continued entry of imported petrol into a market where substantial domestic refining capacity is now available, as well as the integrity of products supplied under the Dangote brand.

What they are saying

The source said the immediate concern is that some marketers are blending imported petrol with products purchased from Dangote Refinery before distributing the resulting product to the market.

The refinery is concerned that such practices could make it difficult to distinguish between products supplied directly by the refinery and those subsequently blended or handled by third parties.

• “It is difficult to understand why we would invest heavily in producing high-quality petroleum products for Nigerians, only for those products to be mixed with imported products of uncertain quality and the resulting product to be associated with the refinery,” a source familiar with the refinery’s position said.
• The refinery has also raised concerns about the absence of a standard laboratory by the regulator and adequate quality-control infrastructure for imported petroleum products.
• The source said there were concerns over the capacity to independently verify and certify the specifications of products entering the Nigerian market.

The refinery’s position centres on concerns that the blending of its products with imported petrol of uncertain quality could affect the perception and integrity of products sold under the Dangote brand.

More insight

The concerns come as Nigeria’s downstream petroleum sector undergoes a structural transition from longstanding import dependence towards greater domestic refining.

Dangote Petroleum Refinery, with a capacity of 700,000 barrels per day, has emerged as a major supplier of refined petroleum products to the Nigerian and international markets.

• The refinery supplies refined petroleum products that meet internationally recognised quality specifications.
• The United States Energy Information Administration recently identified the Dangote refinery as a major factor behind the sharp increase in Nigeria’s seaborne petroleum product exports.
• Nigeria’s seaborne petroleum product shipments averaged 561,000 barrels per day in the second quarter of 2026, compared with an annual average of 79,000 barrels per day in 2023.
• Dangote Refinery’s jet fuel has also emerged as a preferred product in international markets, including the US and Europe.

The refinery has also strengthened its position in the international jet fuel market, with its supplies to Europe surpassing those of traditional exporters from the United States and the Middle East for consecutive months.

What you should know

Dangote Refinery had, in November 2024, criticised an unnamed international trading company for allegedly hiring a nearby depot to “blend substandard products” and compete with its higher-quality production in the Nigerian market.

• The Group Chief Branding and Communications Officer of Dangote Group, Anthony Chiejina, described the development as detrimental to the growth of domestic refining in Nigeria.
• Chiejina said the activities of the nearby depot could undermine domestic refining in the country.
• He drew the attention of relevant authorities to the measures adopted by other oil-producing and refining countries to protect their domestic industries.
• He implied that Nigeria should establish similar laws and regulations to protect domestic refiners.

The latest development highlights the growing tension between domestic refiners and marketers that continue to rely on imported petroleum products as Nigeria transitions towards greater domestic refining capacity.