2 weeks ago
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The Dangote Refinery and Petrochemical is poised to commence fuel exports to South Africa, Angola, and Namibia.
According to a source who spoke with The PUNCH on Friday, the management of the 650,000-barrel-per-day capacity refinery is in advanced discussions with these nations regarding fuel supply agreements.
Reports indicate that four additional African countries – Niger Republic, Chad, Burkina Faso, and the Central African Republic – have also begun negotiations with the refinery.
Saturday PUNCH was informed that more countries are expected to express interest in securing fuel supplies from the $20 billion Lekki-based refinery in the coming months.
Ghana has already signaled interest in purchasing petrol, with Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, noting that the deal with Dangote would put an end to the country’s monthly $400 million fuel imports from Europe.
“I can confirm that talks are at an advanced stage with Ghana, Angola, Namibia, and South Africa, while initial discussions have started with Niger, Chad, Burkina Faso, and the Central African Republic,” the source revealed.
When asked why local marketers are hesitant to buy from Dangote despite the refinery’s production capacity, the source hinted at undisclosed motives among the marketers.
“Between now and January 2025, their agenda will become evident. Dangote refinery is the country’s best hope for a consistent petrol supply and has the capacity to meet national demand,” the source added.
Meanwhile, local fuel marketers have resolved to continue importing fuel from abroad.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) reiterated their stance last week, accusing Dangote of charging exorbitant prices for fuel sold locally.
The marketers are currently awaiting approvals from the Central Bank of Nigeria (CBN) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to import more affordable petrol.
They argue that these imports would ease the burden on consumers grappling with higher prices following the removal of fuel subsidies.
However, the marketers have also requested access to foreign exchange from the CBN and permits from the NMDPRA to ensure compliance with fuel quality and regulatory standards.
An NMDPRA official, who chose to remain anonymous, clarified that while oil marketers can apply for import licenses individually, they cannot do so as an association.
“The law stipulates that applications must be made individually. We cannot approve an import license request made by an association,” the official stated. “If individual marketers do not submit their applications, no permits will be issued.”
Dr. Joseph Obele, National Public Relations Officer of PETROAN, confirmed that the association had applied for an import license approximately one month ago through its new trading division. He accused Dangote of seeking to monopolize the market.
“Dangote is an aggressive competitor aiming to shut out all potential rivals,” Obele said. “He is determined to dominate the market entirely. We urge Nigerians to support efforts to break these monopolies so we can free the market from current constraints. Once our import authorization is approved, the price of PMS will drop significantly, alleviating the financial strain on Nigerians.”
Obele further claimed that the quality of the fuel they plan to import would surpass that of Dangote’s.
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