Dangote Refinery has stopped petrol sales to importing marketers, citing blending concerns as fuel dealers oppose the restriction and defend imports

The Dangote Petroleum Refinery has stopped selling Premium Motor Spirit, PMS, commonly known as petrol, to major petroleum marketers that import fuel into Nigeria, escalating an already heated dispute over domestic refining, imports and product quality.

Also read: Dangote Says Africa Could End Most Fuel Imports by 2030

An official of the refinery confirmed the development, saying Dangote would no longer supply petrol to marketers involved in importing the product because of concerns that its petrol could be mixed with imported grades.

“We are not selling petrol to those who are importing, since they are trying to blend our high-quality products with their ultra-low-quality imported products,” the source said, speaking on condition of anonymity because he was not authorised to speak publicly.

Another source said the refinery was now prioritising sales to independent petroleum marketers and other buyers that do not import petrol.

“We are selling to independent marketers and others who are not importing,” the source said.

The move represents a significant shift in the relationship between Nigeria’s largest refinery and major fuel marketers, particularly as the Dangote plant has become an increasingly important source of petrol for the domestic market.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, showed that domestic petrol receipts rose from 25.8 million litres per day in July to 35.9 million litres per day in August 2026.

At the same time, petrol imports fell from 19.7 million litres per day to 14.6 million litres per day. Domestic receipts therefore exceeded imports by 21.3 million litres per day during the month.

The latest figures underline the refinery’s growing role in Nigeria’s petrol market, but imports have not disappeared.

The Federal Government approved the importation of 830,000 metric tonnes of petrol for the fourth quarter of 2026, reflecting the continued role of imported products in ensuring supply, particularly ahead of the end-of-year period.

That creates the backdrop to the latest confrontation.

Dangote has previously raised concerns about the possibility of its petrol being mixed with imported grades after leaving its facilities. The refinery has argued that it invests heavily in producing high-quality products and does not want fuel subsequently blended with products it considers to be of uncertain quality to be associated with its brand.

“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,” the refinery said last month.

The refinery’s position has been challenged by some petroleum marketers, who say the restriction amounts to an attempt to limit competition from imported fuel.

One marketer, speaking anonymously, accused Dangote of trying to block imports and questioned whether a supplier could determine what products a consumer or marketer could combine.

“We know what Dangote is trying to do. He is just trying to block imports,” the marketer said.

The marketer compared the situation to motorists purchasing petrol from different filling stations.

“For example, when you buy petrol from a TotalEnergies station, and you go down the road, and your petrol is almost finished, you then buy from MRS. Can TotalEnergies say you should not mix its petrol with MRS petrol? No, it can’t,” the marketer said.

The dispute is not simply commercial. It has also moved into the courts and into the regulatory space.

Last week, the Federal High Court in Abuja ordered the NMDPRA to continue granting and renewing petroleum product import licences, opening another front in the debate over the place of imports as Nigeria’s domestic refining capacity expands. Dangote Refinery is separately challenging the continued issuance and renewal of such licences in a Federal High Court in Lagos.

The NMDPRA maintains a regulatory system through which petroleum product importers can apply for permits, while its official import-export platform requires applicants to meet financial, trading and licensing requirements.

For marketers, the ability to import remains an important safeguard against supply shortages if domestic production does not meet national demand.

One marketer argued that the Federal Government must ensure adequate petrol supply and protect consumers, maintaining that imports would still be necessary whenever domestic production falls short.

The Independent Petroleum Marketers Association of Nigeria, IPMAN, meanwhile, offered a more measured assessment of Dangote’s latest policy.

Its National Vice Chairman, Hamed Fashola, said the refinery appeared to be selective in determining which marketers it would supply, noting that not every major marketer is involved in importing petrol.

“I don’t know how far that is correct; Dangote now sells to only IPMAN. I think somehow the information I have is that Dangote is selective about it, say those that are involved in importing. I think it’s not everybody that is importing,” Fashola said.

Fashola stressed that independent marketers were primarily concerned with obtaining products at competitive prices.

“We buy our product anywhere we feel it is cheap. Anywhere we see the product, we go for it, both Dangote and the importers. We always go for the best price,” he said.

IPMAN’s National Publicity Secretary, Chinedu Ukadike, also said he believed Dangote remained open for business, although he could not independently confirm the refinery’s allegation that importers were blending its petrol with imported products.

“I believe that the Dangote refinery is open for business and that it will continue to sell to marketers,” Ukadike said.

He added that independent marketers were currently buying and selling petrol rather than importing it themselves.

“The issue of blending, I cannot say yes or no, because I’m not part of those who are importing. Independent marketers are not importing yet; we are just marketers who buy and sell,” he said.

Ukadike nevertheless defended the refinery’s right to take measures aimed at preventing what it considers adulteration or undesirable blending.

“So, if there is any measure to discourage adulteration of petroleum products by Dangote, I think the refinery and its experts know best. They know the best way to deal with that,” he said.

The disagreement highlights a more fundamental question facing Nigeria’s downstream petroleum sector: how the country should balance the emergence of large domestic refineries with the need to preserve competition and maintain reliable fuel supplies.

Dangote Refinery, with a 700,000-barrel-per-day capacity, has already become a major supplier to the Nigerian market.

Reuters reported in September that the refinery had significantly reduced Nigeria’s dependence on imported gasoline while also expanding its exports of refined petroleum products.

Its growing market share has consequently changed the competitive landscape for fuel importers.

But the continued existence of import permits means domestic refiners and importers are currently operating within the same market, creating competing interests over pricing, supply access and regulation.

The situation is particularly sensitive because any prolonged disruption in the supply chain could have consequences for petrol availability and prices across the country.

For Dangote, the issue is one of protecting the quality and reputation of products produced at a refinery that has been positioned as a cornerstone of Nigeria’s drive to reduce dependence on imported refined petroleum.

For importers and marketers, the argument is that competition and access to alternative sources remain necessary to prevent supply constraints and protect consumers.

Also read: Dangote Says Africa Could End Most Fuel Imports by 2030

The latest decision by Dangote therefore goes beyond a commercial restriction on selected buyers. It marks another important stage in Nigeria’s evolving fuel market, where the rise of domestic refining is increasingly colliding with the long-established role of petroleum imports.