Lagos – Africa’s largest oil refinery, the Dangote Petroleum Refinery, is considering restricting petrol supplies to major Nigerian marketers that continue importing fuel, escalating a dispute over the future of the country’s domestic fuel market.
According to Business Insider Africa, the refinery is concerned that imported petrol could be mixed with its products, creating uncertainty over fuel quality and potentially damaging the Dangote brand.
The refinery is reportedly considering the move as early as this week, subject to further consultations. Punch Newspapers reported that the company is particularly concerned about marketers blending imported petrol with fuel purchased from Dangote before distributing it to consumers.
“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 senior Dangote refinery official told Punch.
Imports challenge domestic refining
The dispute comes as Nigeria attempts to reduce its long-standing dependence on imported refined petroleum products.
Data cited by Reuters show that Nigeria’s seaborne petroleum-product exports have increased more than sevenfold since 2023, reaching about 350,000 barrels per day in the second quarter of 2026, while imports have fallen below 130,000 barrels per day.
However, domestic petrol supplies have recently come under pressure. Data from Nigeria’s downstream regulator showed that refinery supplies fell in July while imports increased. Africa Business Insight reported that domestic petrol supply fell by 21% to 25.8 million litres per day, while imported petrol receipts increased to 19.7 million litres per day.
Dangote has said imported petrol accounted for about 43% of Nigeria’s petrol supply in July, arguing that continued imports make it difficult to forecast domestic demand and manage production and inventories.
BusinessDay reported that the refinery had warned it could increase exports if the situation continued.
Refinery seeks stronger domestic market
The dispute highlights the tension between Nigeria’s efforts to encourage domestic refining and the continued role of fuel imports in ensuring market supply.
Dangote’s 650,000-barrel-per-day refinery has rapidly expanded its role in Nigeria’s fuel market and has also become a significant exporter of refined products. Reuters reported that the facility’s rising output has helped transform Nigeria from a major importer of refined fuels into an increasingly important exporter.
At the same time, the refinery has faced challenges securing sufficient and competitively priced Nigerian crude. Reuters reported that around 30% to 40% of Dangote’s crude supply is imported, highlighting continuing difficulties in accessing domestic feedstock.
The latest dispute could put further pressure on Nigerian authorities to balance competition, fuel availability and the government’s push to strengthen domestic refining.
Industry groups have also warned that rising fuel imports could undermine investment in local refineries. Arise News reported that the Centre for the Promotion of Private Enterprise said unrestricted imports could weaken domestic refining and discourage further investment.
For Dangote, the immediate concern is protecting its position in the Nigerian market while ensuring consumers can distinguish its products from imported fuel. Any decision to restrict supplies to import-dependent marketers could further reshape competition in Africa’s largest fuel market.
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Compiled by Betha Madhomu
