Dangote Refinery to Begin Fuel Exports Across Africa Amidst Tensions with Nigerian Marketers

|By Ejalonibu Kolawole

The Dangote Refinery and Petrochemical is set to kick off fuel exports to South Africa, Angola, and Namibia, Saturday PUNCH has confirmed.

An exclusive source told one of our correspondents on Friday that the 650,000-barrel-per-day refinery was in advanced negotiations with these countries to start fuel shipments soon.

Additionally, talks are underway with Niger Republic, Chad, Burkina Faso, and the Central African Republic as they consider sourcing fuel from the $20 billion Lekki-based refinery. Ghana is also showing strong interest, as confirmed by Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, who stated that an agreement with the Dangote refinery would reduce Ghana’s monthly $400 million fuel imports from Europe.

“I can confirm that discussions are in advanced stages with Ghana, Angola, Namibia, and South Africa, while initial talks are starting with Niger, Chad, Burkina Faso, and the Central African Republic,” the source revealed.

The source also addressed the reluctance of some Nigerian fuel marketers to buy from Dangote, citing “hidden agendas” among dealers. “Between now and January 2025, their plan will be exposed. Dangote refinery is Nigeria’s hope for sustainable fuel supply and has the capacity to meet the country’s needs,” the source added.

Despite Dangote’s capability, local fuel marketers have decided to import fuel from abroad, accusing the refinery of overpricing. The Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria have requested approvals from the Central Bank of Nigeria (CBN) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to import cheaper fuel alternatives.

The marketers argued that more affordable imports would help consumers facing price hikes after the fuel subsidy removal. To proceed, they are seeking access to foreign exchange from the CBN and regulatory permits from the NMDPRA to ensure imported fuel meets quality standards.